Customer relationship management, which is better known as CRM, is a vital tool that assists businesses with everything from boosting their profit margin to offering timely technical support. In a nutshell, a CRM system provides automated responses and marketing techniques that are tailored toward the company's existing customer base.
A good example of the power of CRM can be found with Amazon.com's customer satisfaction rating of 88 percent. Amazon is known for using smart automated marketing methods such as sending emails that contain items a consumer has previously viewed, and this is one of the factors that help the eRetailer sell 426 items per second during the holiday season.
Image Credit: CRMRetargeting.com
Clearly Amazon has a good handle on CRM, but startup ReTargeter has been helping to revolutionize the way companies of all sizes utilize their online marketing budget. After all, it is one thing to connect with people who shop at an online store regularly, but it is quite another to reignite the interest of old consumers or even bring in new people altogether. Interestingly, ReTargeter offers a solution for both of these situations, and all it requires is a retargeted approach.
Ad retargeting simply means changing the way that online advertisements are targeted toward specific consumers. For example, if you are trying to capture the attention of consumers who have not made a purchase from your online store for more than six months, you could target them with an ad that offers a discount for returning customers. Meanwhile, your current customers would see a different ad altogether.
So how does all of this work?
Companies feed a list of consumer email address or physical addresses that they have on file into their retargeting software of choice. Next, targeting specifics are set to ensure that everyone sees the proper advertising. Finally, the software finds the specified consumers via a database and then begins tracking their activity online. Ultimately, this leads to each person seeing advertising content across the Internet that has been tailored to their interests and purchasing habits.
According to TechCrunch, ReTargeter has run several successful campaigns, including one for BustedTee. This campaign targeted consumers who had not taken any positive action such as making a purchase or visiting the company's website within a specific time frame. At the end of one month, the t-shirt company made an impressive 390 percent ROI. Perhaps the most interesting part is that they only needed to sell $7,800 worth of merchandise to hit such a high return on investment when compared to the cost of using the ReTargeter service.
As mobile usage continuously increases, it is also becoming extremely important to focus on cross-device retargeting. After all, 67 percent of consumers will end up switching from one device to another before they actually complete a purchase, and it is vital to keep these people engaged. It is also crucial to give people the opportunity to find your ads again when they do not make a purchase the first time. Brock Murray of seoplus+ touched on this topic in regards to YouTube's advertising options: "Remarketing is a great way to reconnect with users who have viewed, liked, shared or commented on your video or channel and retarget them, both on YouTube and elsewhere."
Although 86 percent of Internet users have some concerns about online privacy, the reality is that most of them will still make purchases based on retargeted advertising. This means that retargeting is a marketing method that is likely to become increasingly popular, and companies that begin utilizing it have a good opportunity to increase sales from target groups while staying within their advertising budget.