Direct-to-consumer (DTC) eCommerce is growing fast. This means your DTC brand needs to stand out and grow. One way to do this is with retargeting. This blog post will explain retargeting, its benefits, and how to use it for your DTC eCommerce brand. And don’t miss our podcast interview with DTC eCommerce expert Steve Dinelli at the end.
What is Retargeting?
Retargeting is a way to advertise online. It’s sometimes referred to as remarketing, but there’s a difference. Remarketing is when you market to someone who has converted on your website – in other words, you already have a way to contact them.
Retargeting campaigns target website visitors who don’t convert.
It helps you reconnect with people who have already interacted with your brand. The goal is to remind them about your products and services. This way, they may come back and convert.
You can retarget visitors on multiple channels (e.g., email retargeting and direct mail retargeting).
Why Retargeting Matters for Your DTC Brand
There are two reasons to DTC eCommerce companies should be using retargeting:
- Improve ROI. Retargeting often gives you more return on investment (ROI) than other online ads. This is because it focuses on people who already showed interest in your brand.
- Increase Conversion Rates. Retargeting keeps your brand fresh in people’s minds. This can lead to more sales. This is especially true for DTC eCommerce, where people may need several reminders before buying.
How to Scale Your DTC eCommerce Brand with Retargeting
Here are the seven steps you’ll need to take to launch a DTC eCommerce retargeting campaign.
- Find Your Target Audience. Figure out who you want to retarget. This could be people who left items in their cart, looked at your products but didn’t buy, or interacted with your brand on social media.
- Pick the Right Retargeting Platform(s). Choose a platform that fits your audience’s habits and demographics. Some options are direct mail, email, Google Ads, Facebook, and Instagram.
- Add the Necessary Pixels. Whichever platforms you choose, you’ll need to place a small script on your website. That will allow the platform to build an audience based on your website traffic.
- Create Engaging Ads. Make interesting ads that speak to your target audience. Use strong calls-to-action (CTAs) and highlight what makes your products special.
- Track Conversions. Set up conversion tracking to see how your retargeting ads are doing. This helps you improve your ads for better results.
- Segment Your Audience. Split your retargeting audience into groups based on how they’ve interacted with your brand. This lets you create personalized ads for each group.
- Test and Optimize. Keep trying different ad styles, targeting options, and bidding strategies. This helps you find the best mix for your retargeting campaigns.
- Watch Your Budget. Check your ad spending often and adjust your budget as needed. This ensures you’re putting money into the most effective campaigns.
Build Your DTC eCommerce Brand with Retargeting
Retargeting is a strong strategy for growing your DTC eCommerce brand. By following the steps above, you can make targeted and effective retargeting campaigns. These campaigns can lead to more sales and better customer relationships.
For more on DTC eCommerce retargeting, check out our interview with Steve Dinelli on the Hot Pursuit: The Retargeting Podcast. In this interview, Steve shares valuable tips and insights for marketers of all levels.
Understand Customer Objections
One of Steve’s key suggestions for advanced marketers is to address customer objections head-on. He explains that creating multiple retargeting ads targeting different concerns can help overcome these objections.
“In retargeting, you might want to have five different features on five different ads,” Steve said. “You want to have a few different retargeting ads that the platforms can rotate through that overcome each of the different objections that a customer might have.”
Balance Segmentation and Media Efficiency
According to Steve, finding the right balance between segmentation and media efficiency is crucial for maintaining manageable audience groups. “You want to have your audiences big enough that you’re not losing media efficiency, but at the same time, segmented enough that the right customer can get the right message,” he said.
Exclude Previous Purchasers
Steve emphasizes the importance of strategically excluding previous purchasers based on product type and repurchase frequency. He suggests that marketers should consider factors like product consumption and the average time between purchases to determine the appropriate time to re-engage customers with retargeting ads.
Monitor Key Performance Indicators (KPIs)
Steve advises closely monitoring KPIs, including cost per acquisition, return on ad spend, click-through rate, and frequency, as they are crucial to the success of a retargeting campaign.
“Click-through rate is really critical,” he said. “Frequency gets important just because if click-through rate gets really low but frequency is really high, it means you’re probably overspending on your retargeting ads, and it becomes less efficient.”
Craft Cautious Ad Messaging when Necessary
For personalized products or sensitive topics, Steve recommends crafting cautious ad messaging to avoid causing discomfort to potential customers. He stresses the importance of being “empathetic to what you’re selling” and considering where and when the user will see the ad.
Focus on High Consideration Purchases
Steve believes that retargeting works best for high-consideration purchases, as it helps brands stay top of mind. He shares his experience working with different mattress brands and highlights how each has employed unique retargeting strategies to appeal to its target audience.
Stay True to Basic Marketing Principles
Despite the technical complexities that may appear in retargeting, Steve encourages marketers to stick to basic marketing principles.
“Know your customer, know what they respond to, and serve it to them in a way that makes them comfortable and more likely to engage with your brand or your product that you want them to buy or the action that you want them to take,” he said.