What is the Difference Between Retargeting, Remarketing and Loyalty Programs

In the world of online marketing there are multiple methods to acquire more customers as well as upselling the customers you already acquired to increase your bottom line.


Have you ever wondered why once you search for a certain item you now see it everywhere?


Why, once you purchased an expensive bag you now see shoes that will go perfectly with that bag?


Searched for a red hat? Now everything you see in your Instagram feed is red!
There are multiple steps in the customer’s discovery journey and so, online marketing techniques have evolved to increase sales effectiveness at each step.


Every time you search online, visit a website, post on social media, or check into a location, your social profile is secretly being improved by advertisers’ platforms, most noticeably Google and Facebook.


Your social profile contains all your digital fingerprints and from there makes an AI powered analysis of your personality traits including your loves, hates, political opinions, and even secret desires.


Your profile also contains your projected next purchase based on recent activities, but can also predict purchases in the next 12, 24 and 36 months based on patterns that are common to population with your personality traits.


While all of the online marketing techniques in this article make extensive use of your social profile, there are differences that make them effective at different stages of the customer discovery journey.


Retargeting
The nightmare of every retailor is cart abandonment. Customers that visited your website and didn’t end up purchasing your product. They might even add your product to their cart but changed their mind and left before completing a sale.

Retargeting is the practice of showing personalized ads to those customers urging them to come back to your website and complete the transaction.


In retargeting ads, a retailer might show similar products or a time limited sale price encouraging the customer to return to the site.


Retargeting might also involve social profiles. You might ask a potential customer to follow your social page to receive updates. Given time, the customer will make a purchase.


Remarketing
In a remarketing campaign you will target customers that have already actively engaged with your brand and gave you their information as a part of a transaction or the start of a checkout process.


Those type of customers are already emotionally invested with your brand and because you already have their information there is no need to spend expensive PPC dollars to reach them.


Instead, they can become a part of your email campaign. Once a customer has given you their email address you will be wise to exclude them from your audience lists used on Google Adwords or Facebook Marketing as a part of your custom audience feature. No need to spend money on a customer that have already purchased that specific product and email lists are far cheaper than PPC campaigns.


Loyalty Programs
At the end of their discovery journey and after they have purchased your product Loyalty Programs help you keep your customers coming back and maximize your customer’s ROI.


According to Nielsen 84% of consumers say they are more likely to repurchase from a brand that offers a loyalty program.


66% of consumers even say the ability to earn rewards changes their spending behavior!


Loyalty Programs offer points or rewards to consumers. Points which they can redeem for discounts or even free products.


Loyalty Programs might also offer early access to sales or products.
Once such company with a great Loyalty Program is CVS.


CVS tracks purchases using your phone number and rewards shoppers with ExtraBucks program that acts as free money to pay for products.


CVS ExtraCare members also have access to special sale prices that regular customers don’t and finally they periodically receive fifty percent off coupons if they sign on to CVS’s mailing list.


In 2019 ExtraCare had over 74 million members, making it a huge success for the CVS brand.


Conclusion
As you can tell, there are multiple stops in the customer’s discovery journey.
From their initial interest to becoming a loyal repeat customer, your conversion funnel must be diverse as well as optimized periodically if you wish to compete in your industry.


Now that we talked about some of the principles of online marketing let the experts at Inverted Software run your online marketing efforts with the skills and enthusiasm that built our reputation as the best software company around!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s