Small Business Guide to Email Retargeting

How email retargeting works

Email retargeting starts with analyzing customer behavior to determine who is receptive to your message. Because retargeting is focused on a specific segment of your email list, it tends to have high conversion rates.

“Email retargeting works by observing the customers’ behavior patterns. It is one of the most popular marketing strategies for brands, owing to the high conversion probability it offers when used correctly,” said Ankit Thakor, head of digital marketing at SoftwareWorld.co.

Email retargeting also helps you monitor the target audience’s behavior.

“Browsing cookies play a significant role in monitoring user activities. Nowadays, email marketers are also using tracking pixels to track specific users’ behavior after opening the email,” Thakor added. “And the most popular way is by adding unique code in the email HTML or signature, which can be tracked when the recipient opens the email, clicks on CTAs [calls to action] and gets redirected to the landing page.”

Email retargeting best practices

Below are some common best practices that can help you get the biggest benefits from email marketing:

• Move fast: Like all things digital, your email marketing strategy needs to be timely to resonate with your target audience. If you can set up a drip campaign or retargeting emails to be sent automatically the moment someone takes a certain action, such as leaving your site without checking out the items in their cart, your chances of success increase.
• Reengage inactive users: Look at the products or services your inactive users were once interested in and then send those individuals emails with special offers or updates. You may be able to pique their interest once again and reengage them with these offers, getting them back into your sales pipeline.
• Cross-sell and upsell: When customers view or buy certain products, it may give you some insight into other products or services they could be interested in. Use your email marketing content to surface these cross-sell and upsell opportunities to increase your chances of keeping them engaged.
• Keep frequency in mind: Email retargeting can help you provide value to your customers, but frequency matters too. Customers don’t want their inboxes full of your ads, especially since sending them too often can result in them deleting your emails unopened.
• Segmentation: If you can segment your email list and send content to users accordingly, you increase the chances that the content you send will be relevant to them. In turn, this can improve open rates and conversions, so try to create informed segments of your audience for better results.

The dos and don’ts of email retargeting

There is a right way and not-so-right way to approach email retargeting. Some approaches are turn-offs for customers. It’s important to find a balance between sending engaging retargeting emails and ensuring you’re not harassing subscribers who aren’t interested.

Thakor offered several do’s and don’ts for email marketers.

Do:

• Draft a simple, yet attractive subject line and try to personalize it.
• Experiment with different CTAs.
• Keep your message engaging and clear.
• Monitor the quality of your content.
• Look for spelling or grammatical errors.
• Create a positive user experience.
• Monitor email frequency to avoid overloading your subscribers with information.

Don’t:

• Make your email campaign overly promotional.
• Send emails multiple times in rapid succession.
• Buy a list of email prospects.
• Use unbranded email addresses.
• Use the same email message or content repeatedly.

When to use email retargeting

How does a business owner know when it’s appropriate to use email retargeting? April Maccario, founder of AskApril, said it’s best to use it if your brand needs a long-term marketing strategy.

“It keeps your company or organization in front of potential customers even after they’ve left your website. It is also an excellent marketing strategy because it has the potential to target customers despite changing trends,” Maccario said.

There could be a dozen reasons you pinpoint that merit a retargeting email. However, keep in mind that it’s not usually best practice to send out a retargeting email to your entire email list.

Knowing how to segment your email list will help you effectively serve retargeting emails. You will reduce the likelihood of subscribers deleting your email without opening it or unsubscribing altogether, which would hurt your progress.

Here are some examples of when to send a retargeting email.

Abandoned cart

Sometimes, people are in the mood to shop online. However, when they reach checkout, they may have second thoughts.

“Businesses should utilize email retargeting when they’re met with an increase in customers abandoning their carts,” said Mika Kujapelto, co-founder of Cashcow. “Maybe life has interrupted many customers’ lives or made them more cautious with impulsively purchasing online products. Whatever the case, email retargeting can help remind customers they have a cart full of products they were once interested in purchasing.”

Low stock/back in stock

If someone has something in their cart or they viewed a particular item multiple times and you’re running low on that item, let them know. Customers can decide whether they want to purchase that item and you create a sense of urgency by telling them it might sell out if they don’t take action.

A feature you might want to add to your website could be that if an item is out of stock, customers can enter their email addresses to be notified when it’s back in stock. This way, you know you’re sending this retargeted email to a highly interested customer.

You can also send back-in-stock emails to those who have viewed an item that was once out of stock but who didn’t sign up for the back-in-stock notification email. Now is your chance to remind them of the item and persuade them to take action.

Sale/special offer

Similar to a low stock alert, if an item that a customer has their eye on goes on sale, that might be the push they need to become a paying customer. Additionally, if a customer is constantly viewing a certain product or adding it to their cart but not buying it, offer them a discount that’s specific to them. Again, this might persuade them to finally make the purchase.

Last chance

Whether you are discontinuing an item or a sale is about to end, sending an email with an urgent subject line letting customers know this is their last chance may bring them back to your website.

Product recommendations

Email retargeting isn’t just for people who don’t open your emails or who don’t complete purchases on your website. You can also use it to recommend items to loyal customers.

“When you’ve had a loyal customer for the past five years, they’ve already been to your site and know a lot about the products you have. However, you can still use the products one customer bought, has shown interest in and more to help create product recommendations for them,” Kujapelto said. “The more accurate you are with the type of products you think will interest this loyal customer, the more value you’re giving them.”

Kujapelto added that the approach above provides an excellent customer experience, improves the chances they will continue to shop with your business and it sends a message to your customers that you care.

Why you should send retargeting emails

Email retargeting can boost revenue by giving interested individuals that extra push to become customers.

“Most people purchase products they’re interested in and retargeting allows you to remind them that you’re offering exactly what they need,” said Dave Nilsson, founder and director of digital marketing company The Converted Click. “When you do that, it regenerates interest and they crystallize their decision to buy.

Nilsson also said that retargeting helps you hone your marketing strategies.

“I think retargeting is a brilliant way to boost your success rate. That’s because you’re not shooting an arrow in darkness. You have a clear vision of what customers are interested in and this helps save you valuable time in crafting effective strategies,” Nilsson added.

Another reason for sending retargeting emails is to re-evaluate the interest of your subscribers, especially inactive ones. You may want to send retargeting emails to see if inactive subscribers are still interested in receiving your emails. This is one instance where email segmentation is important.

If you segment your email list thoroughly and create a separate list of inactive subscribers, you can revisit that list with a retargeting email. There are two ways you can approach these emails: You can ask those subscribers if they want to continue receiving emails, with an option to unsubscribe. Alternatively, you can offer them a special discount to regain their attention and remind them of your business.

Examples of email retargeting

You probably receive dozens of retargeting emails without even realizing it. Companies that tailor their emails specifically to their customers’ habits, purchasing history and interests often achieve success with their retargeting efforts.

“Businesses that merely send generic marketing emails about their new products are less likely to maintain customer loyalty. Instead, email retargeting should be about giving customers something they would use based on previous searches they’ve made, so even those who aren’t paying customers can benefit from these personalized emails,” said Kujapelto.

Netflix

Netflix sends out lots of emails that you might not realize are retargeting emails. The two most common are emails about titles you might like based on your past viewing history and pricing emails about upgrading your plan or your plan increasing in price.

Adidas

Nathan Sebastian, a content marketer with business-to-business research and review platform GoodFirms, said that when Adidas sends cart abandonment emails, they do so without sounding salesy.

“… This is an excellent way to bring the product back in a customer’s mind without appearing as pushy,” Sebastian explained.

Amazon

“If you have an Amazon account, chances are you’ve received email marketing. They send their customers emails such as ‘We found some items we think you might like,’” said Alex Membrillo, CEO at Cardinal Digital Marketing Agency. “They then list products in the email with links to Shop Now.”

Membrillo added that the email’s product suggestions are remarketing based on a customer’s shopping history, focusing on items that were researched or left in a cart but not purchased.

Marriott

Marriott sends promotional remarketing emails based on a guest’s past travel history or an interested guest’s site activities, according to Membrillo.

“For example, if you’ve been researching hotels in Mexico, you might receive remarketing for special offers, getting to know the local area in Mexico and other promotions for your travel destination,” said Membrillo.

Nike

Nike sends retargeted emails after customers leave an item in their cart. They give opportunities to consumers to talk to a Nike representative to resolve queries, but they also emphasize their free shipping and free return policy.

“It won’t be wrong to say that email retargeting is a powerful tool to get back to your customers,” Thakor said. “It helps regain trust and belief. Email retargeting automatically triggers and helps in achieving your lost targets. Email retargeting, performed with good strategy and zeal, gives fantastic results.

Email retargeting keeps users engaged

Incorporating email retargeting in your email marketing strategy is critical to keeping users engaged and bringing back former leads and customers who have lost interest. This important component can help you bring people back into your sales funnel and drive repeat business or convert prospects who previously didn’t make a purchase. Don’t neglect the users on your email list that have fallen off ― retarget them with compelling content that’s relevant to them and soon enough they’ll be active once more.

Linda Pophal contributed to this article. Source interviews were conducted for a previous version of this article.