According to a survey of over 72 Million customers shopping on 86 retail sites, marketing data company, Custora has learned that Email is the number 3 source of customer acquisition.
This is outpaced only by Organic Search with 15.8% of total customer acquisition – and CPC with 10% acquisition.
In the last four years, Email has quadrupled it’s customer acquisition rate, reaching nearly 7% of total acquisition, making it a serious contender for where you should be focusing your time and money.
The study tracked customer click sources (Email, social, search, etc.) as well as what & how much they bought over the course of two years.
Turns out, email customers are 11% more valuable than an average customer, while Facebook customers were just above par & Twitter customers are (surprisingly) well below average.
Now, even though social media accounts for less than steller results, this article isn’t one to add to the endless “email vs social” drivel.
Instead let’s talk about maximizing your email marketing efforts – specifically by using email retargeting to display ads across all mediums, including social, to improve the lifetime value of customers across every channel.
What is Email Retargeting?
Basically, email retargeting shows ads across various display networks, based on the emails your subscriber opens.
The technique allows you to create contextually relevant display advertising across the web. Ultimately, this can lead to reducing your overall send frequency while maximizing the effectiveness across multiple channels.
In one case study, BustedTees used email retargeting to display ads to customers who recently purchased a product and encourage repeat purchases within a short timeframe. Combined with CRM retargeting (detailed later) they were able to create an average order of $40/ checkout and achieved 195 conversions with a 390% ROI.
How Does Email Retargeting Work?
Just like site retargeting, when a subscriber opens your email, a cookie is dropped into his or her browser.
When that subscriber visits other websites with retargeting ads enabled, your ad will be displayed (provided it’s the highest bidder) and your brand stays top of mind.
Platforms like Retargeter & Adroll are able to reach roughly 98% of the internet’s ad inventory by leveraging various ad exchanges, allowing you to display relevant advertising virtually everywhere your potential customer would be.
Retargeter customer Crowdcast says about using the method
“Retargeting makes us look bigger, it makes us look like we spend more money than we actually are.”
According to the 2012 Channel Preference Survey by Exact Target, 77% of people prefer to receive promotional materials over email than any other channel.
Statistically speaking, using email as the primary hub for your growth and acquisition strategy predisposes your subscribers to purchase and refer more loyal & engaged customers.
A Hypothetical Framework Where Retargeting Generates More Loyal Customers
Let’s say you’ve created a high-ranking landing page that sells widgets.
To drive additional traffic to this page, you’ve created a standard Facebook Ad campaign, with the intention of using email retargeting later, because you’ve heard that retargeted Facebook ads generate 89% more sales revenue than non-Facebook channels.
You also know the majority visitors won’t convert to a sale on the first visit, so your primary call to action is for visitors to exchange email for an autoresponder series that explains the different aspects of widgets. (Making the Most of Your Drip Campaign)
In this autoresponder, you talk about widget problems, widget use cases, why widgets matter, and how to find your company on various social media platforms.
Within every email contains a retargeting cookie.
If for some reason, that subscriber opens the email, but doesn’t click the link, (triggering a burn pixel), the retargeted Facebook ads and sponsored newsfeed story will then attempt to drive that subscriber to the content the email originally intended to deliver.
Doing this effectively increases the chances of each message being heard, and keeping the prospect focused in an otherwise hectic internet environment.
After the subscriber buys, they are sent to a conformation page with a “Refer A Friend” section.
Understanding that people are 71% more likely to buy based on social media referrals, your new customer can now recommend their friends to your business by sending them to a landing page with an ethical bribe and CTA to subscribe to autoresponder – effectively repeating the cycle.
Theoretically, because your widget customers are:
- Entering the funnel through Search, CPC and are being referred by a friend.
- Being nurtured through email.
- Exposed to consistant messaging across all marketing channels which corresponds to each message in the email lifecycle.
You will have better than average customers with strong brand loyalty… or at least that’s what the statistics indicate.
Use Case 1 – Online Retailer Reenforces Email Messaging
Using the “Email Forking” strategy, you automatically move subscribers to new email lists that are more specific to their interests.
If for example a retail site first email offers “shirts & shoes”, and the subscriber clicks “shoes”, they will be moved to a shoe specific email list, and the “shoes” retargeting ad is triggered.
On the next email, the subscriber will be given a choice between “casual & dress shoes.” When the subscriber clicks dress shoes, now they are moved to the “dress shoes” list while the retargeting ads switch over to display dress shoes over network. The idea is to drill into specific interests and reinforce those click decisions with relevant retargeted advertising.
Denim retailer LuckyBrand uses this strategy very clearly.
Upon signup, subscribers are offered with 20% off next purchase, and are encouraged to use your new 20% off discount within a relevant category.
Clicking the link that corresponds to your gender switches you to a gender specific list. Relevant retargeting ads are then displayed across the web depending on your activity on the site.
What’s more interesting though, is how LuckyBrand uses IBM® Product Recommendations software to send product suggestions over email based on items found in the subscriber’s abandoned shopping cart.
To implement a similar strategy for your business, email tools like Infusionsoft, OfficeAutopilot or Awprotools (an Aweber premium app) allow for click based list switching & subscriber tagging while retargeting software like Retargeter.com allows you to insert ad retargeting snippets into the emails you send.
Use Case 2 Cookie Seller Reduces Shopping Cart Abandonment
According to a study by Boston Marketing Data firm SeeWhy, an average of 71% of visitors abandon their online shopping cart.
While I’ll be going into more detail on reducing shopping cart abandonment in my next article, know that using a combination of triggered emails with email retargeting can generate nearly $18 in revenue/email sent (source: SeeWhy)
Cookie retailer Smileycookie.com used this methodology to send a 3 message autoresponder specifically for people who abandoned their shopping carts, and was able to convert 29% of abandoned carts into buyers.
The summery of their strategy goes:
- First email is sent within a half hour of abandoned cart, reminds visitor of all guarantees, Faqs etc.
- Second email is sent after 23 hours of cart abandonment, offers 10% discount
- Third email is sent four days after abandonment, offers 20% discount
“Although concerned that offering a discount might have conditioned customers to continually abandon their carts, this has not come to pass. Smileycookie.com’s abandonment rate has remained steady, Golomb [Smiley Cookie’s Marketing Director] says.”
Use Case 3 – Email Retargeting to Improve Organic Search Listings
By using email & retargeting to drive traffic to company’s Google+ page & encouraging a “circle”, company now stands better chance at appearing in user’s Personal Google searches.
Use Case 4 – Facebook Newsfeed Retargeting
Let’s say your subscriber opens a sales email, clicks the link, but doesn’t convert. Then what?
Your marketer instincts might urge you to push the sale, but really you should view this as an opportunity to learn more about why your lead isn’t buying.
Adroll provides the foundation for this with this ad:
While this Newsfeed ad clearly acknowledges the site visit, you could easily link to a survey in order to understand more about your lead’s objections and concerns.
In time, you will gather enough data to pre-emptively address these concerns. You could also enable an additional retargeting cookie to the survey which would encourage your customer to view a F.A.Q style webinar or a more detailed product pages.
The point is, by using email & site retargeting together, you can move non-buyers into a better, more informed nurture sequence – and ultimately leverage the data to influence campaigns on every level of the funnel.
Use Case 5 – CRM Email Retargeting To Reactivate Old Customers
CRM retargeted is when you’re able to display retargeting ads using nothing more than a subscriber’s email.
Earlier, I mentioned BustedTees using the method. Basically, they created a seperate list of all their inactive/dormant email addresses and created a display campaign which allowed them to monetize and engage customers who had not interacted with the company in a very long time.
In the span of the month, the company was able to generate 447,180 ad impressions targeted towards people who were already familiar with the brand, but hadn’t interacted with them in quite some time.
If your company sells to high ticket customers, another way of using CRM Email retargeting would be segment out the known CEO’s within an email list, then upload those emails to the retargeting platform.
Doing this allows you to target very specific people your advertisements across the web, allowing for a much stronger messaging, and streamlined product offering.
Auto Manufacturer Toyota uses a similar method of sending retargeted ads to their customers with a 2 year lease set to expire.
A Word Of Warning About Email Retargeting
Retargeting networks like Retargeter.com or the Facebook Exchange program allow you to upload entire email lists to their servers, allowing them to serve those users with retargeting ads.
While it can be extremely effective for reactivating dormant email leads, it’s important you realize that you must update a common privacy guarantee:
“We won’t rent, sell, share or barter your email address to third parties”
It’s important if you decide to do email retargeting that you update your privacy policies to reflect that.
By adding retargeting pixels to your emails in a smart (not creepy) fashion, you can reduce irrelevance not just in your email marketing, but in your overall marketing endeavors.
Curious, have you already tried email remarketing? If not, have you noticed any well done remarketing campaigns in your online adventures?