We recently had a new starter ask us why we bother with remarketing. “Wouldn’t they just come back anyway,” they asked.
So since we were explaining it to a new member of staff, we figured we could explain it on our blog too.
What our new colleague meant by ‘they’, was ‘website visitors’ and to answer their question we need first to look at who ‘they’ are.
‘They’ can be lumped into two groups; identified visitors and anonymous visitors.
This group of people are those who have previously entered unique personally identifiable data (such as an email address or phone number) on a website. Most often this would mean the visitor has already bought something from the site, signed up for an account or email newsletter or has put in personal details while trying to checkout, even of they didn’t buy anything. In each of these cases it’s fair to say the visitor has some kind of relationship with the brand or company.
This group consists of those who don’t put in any personal details. Although they can be tracked via IP addresses or device IDs, this can be inaccurate and isn’t information you’d normally use for remarketing purposes, but for targeted advertising.
Now you know the difference…
Now you’re aware of the different categories, and for the purposes of explaining why remarketing matters, we’re going to focus solely on identified visitors.
Now that we’re looking at solely identified visitors there are a wealth of statistics which we could chuck at you, but for the sake of clarity lets look at one group and one set of figures. So now we’ll take a look at a study by a specialist remarketing company called SafeCycle.
SafeCycle used a client’s site to demo the effect of remarketing. To do so they looked at all identified visitors who abandoned a purchase, i.e. they put an item in their basket, entered personal details, but didn’t complete their purchase.
According to the logic of our new starter all those people must have wanted the product they put in their basket, so they would return at some point to buy it.
However, SafeCycle’s test doesn’t reflect this. SafeCycle took the email addresses of 50,000 people who abandoned purchases on their client’s website and targeted 90 per cent of them with a remarketing email, while ten per cent received no communication.
The results of this?
33 per cent of all the visitors returned naturally on both sides of the test, as our new colleague suggested they would. However, an extra 8 per cent of visitors who received the email then returned to the site and made a purchase – equating to another 3,600 sales.
So why try remarketing?
Well for the sake of sending one quick email can you afford to miss out on clawing back an extra 8 per cent of all abandoned sales in your ecommerce UK shop?