Lately we have received emails from customers and friends who say things like “I saw your ad on the Chicago Tribune” or “You guys must be spending on a lot on marketing. I see your ads everywhere.” In both these examples people are being retargeted by FeeFighters with a display ad. Here is an example:
I have found that many people don’t understand or realize that they are being retargeted. As a result I thought I would take a couple minutes to explain how it works and why I like it.
How it works:
The first step in retargeting is when someone comes to FeeFighters.com and leaves our site without selecting a new credit card processor. When a person hits our site:
1) We cookie them (which means we store a small piece of data on their computer that lets us know that they were on our site and didn’t purchase).
2) As the person surfs around the web our banner ad is shown,reminding them to come back and complete the process on our site. Our ad will stop showing after either a) its been 30 days since the person has been to our site or b) they selected a new credit card processor.
Here’s why we like it:
1) It shortens our sales cycle-Our sales cycle can be long and retargeting can help us shorten it. Small companies often don’t put “review credit card processing rates” at the top of their priority list. They can sometimes wait months to complete the process, which can end up costing them hundreds or thousands of dollars in missed savings. Our retargeting ads are a gentle reminder that they can save money by completing the process on our site.
2) It’s highly targeted- If a person came to our site, they more than likely are interested in finding a cheaper merchant account. Targeting the correct demographic with banner ads can be difficult, but with retargeting you only show your ads to people who have already expressed an interest in your product.
3) It’s cheap-Some of the paid search keywords in our market cost upwards of $30 per click. If a person leaves without purchasing, we would have to spend an additional $30 in paid search to bring them back. However, our retargeting ads cost roughly $2 per click. Its a relatively cheap way to bring them back.
Retargeting has been an effective strategy for us. Our cost per acquisition so far has been attractive. In the coming months we will be segmenting our retargeted traffic with more relevant ads and landing pages. By doing so I hope to improve the customer experience and our conversion rate. In the coming months I also hope that the retargeting networks become more transparent with information. Specifically I would like to know when I retarget someone if they come to our site originally through a paid channel or organically.