In this article, we’ll dive into the world of remarketing campaigns and explore the various techniques and strategies businesses use to keep their brand top of mind, convert more customers, and ultimately drive more sales.

What are remarketing campaigns?

Remarketing is a powerful marketing strategy that allows businesses to engage potential customers who have shown interest in their products or services but have yet to purchase. By targeting these warm leads, brands can bring them back to their website and convert them into paying customers.

But aside from retargeting people who have shown an interest in a product, remarketing also applies to existing customers. Businesses can target their existing (and past) customers with personalized marketing campaigns to encourage them to purchase again from the brand.

The goal of remarketing campaigns is to either push warm leads into purchasing; or reignite the interest of past and existing customers to make another purchase.

Why are remarketing campaigns important?

Not everyone who steps into your store (or goes to your website) is ready to purchase. Often, these visitors are in the early stages of their buying journey. They are either in the curiosity and exploratory phase or the consideration and evaluation.

Having a remarketing campaign set up for these cold to warm leads help brands increase their conversion rate by influencing the decision-making process through discounts or other promos. This helps reduce buying friction and encourages prompt action from customers.

From the standpoint of existing and past customers, remarketing campaigns are essential because it helps increase the lifetime value of your existing customers. Plus, it allows you to reactivate your lapsed customers.

This is a cost-effective way to increase your company’s sales without investing a lot in advertising.

How do remarketing campaigns work?

For online-based businesses, remarketing campaigns work through a tracking technology installed on a website. This widget identifies customers who have visited a website, engaged with particular social media profiles, or subscribed to an email list. These customers are then targeted with relevant ads that remind them of the advertiser’s brand and encourage them to purchase.

For traditional businesses, remarketing can work with a loyalty campaign, where customers give brands their personal information – including contact details to gain access to rewards.

Aside from loyalty programs, social media is a good source of remarketing data for traditional businesses. Marketers can run personalized campaigns for their social media followers depending on their level of engagement and affinity to the brand.

How can remarketing campaigns impact your business?

Remarketing campaigns can significantly impact your business by improving brand recognition, creating repeat purchases, and increasing conversion rates. These campaigns allow you to target customers who have previously engaged with your brand but have yet to purchase. Or customers who haven’t bought anything for some time.

By showing personalized and relevant ads to these customers, your brand can re-engage them and encourage them to complete (or make) a purchase.

Remarketing campaigns can also help you gather valuable insights about your customer’s behavior and preferences. By analyzing the data collected from these campaigns, you can make informed decisions about your marketing strategies and improve the overall customer experience.

For example, you can use consumer data to determine which products are most popular among customers. Then, use that information to create a more targeted and relevant marketing message for your campaigns.

Additionally, remarketing campaigns can help you increase customer lifetime value by encouraging repeat purchases and building long-term customer relationships.

Whether you’re an online or traditional business, remarketing campaigns are essential to the growth of your business. That’s why you need the right tools to run effective remarketing campaigns – especially if you’re a traditional business with limited access to widgets e-commerce brands use.

ARLO is an easy-to-use multi-functional customer loyalty software that can help collect consumer data, implement personalized campaigns, and run remarketing programs effectively.

You can learn more about ARLO here.

Increasing Purchase Value

Another common strategy brands use to get more from their existing customers is increasing purchase value (getting them to buy a higher-valued item). Increasing a customer’s purchase value can be an excellent long-term play, mainly if they stick with the higher-priced item, even without your prompts.

This strategy can be implemented primarily on quick-service restaurants when the cashier asks, “would you like to upsize that.” Moreover, another subtle strategy companies use is the anchoring technique. This is when they present you with three options – Small, Medium, and Large – with the Large always being more bang-for-your-buck than the Medium one. So, you end up getting the Large option.

This is also where upselling comes in. Upselling is when brands ask you if you want an upgrade on your purchase. For instance, you’re buying the latest iPhone 14 ProMax 256GB, and the product specialist asks if you’ll get the 512GB instead to store more photos.

Increasing Basket Size

Increasing a basket size is when you encourage customers to get more products than they intended. You can see this often on e-commerce sites when they offer products that go well with what you’re buying. Or they’re suggesting products that are “frequently bought together” with what you’re buying. Traditionally, this is when cashiers at fast food restaurants ask if “you’d want some fries with that.” Or if you want to take home another order.

These strategies are usually called cross-selling. If upselling is upgrading a current product, cross-selling, on the other hand, is when you offer related products to make the purchase “better” for the consumer.

Going back to the smartphone example. Aside from upselling you with a higher memory, the product specialist might also offer you accessories like Bluetooth headphones, wireless chargers, and protective accessories for your gadget.

Increasing Customer Advocacy

The last strategy businesses use to earn more from their existing customers is to turn them into brand advocates who share the brand with friends and family.

Brands do this through gift cards, gift packages, or bundle promos for their customers.

Usually, you’ll see brands come up with special promos/bundles during hallmark events like Valentine’s Day, Father’s Day, Mother’s Day, and other celebrations. This is to encourage their existing customers to buy their products, not for them, but for those around them who might become customers too.

Another typical example is when restaurants do group meal deals, so you’ll bring your friends and family over for a meal.

Finding the Right Strategy for Your Brand

None of the strategies above are a one-size fits all approach. These are just guides and springboards for new ideas. Ultimately, what you need to do to find the right strategy is to listen to your customers and understand what they want.

Consumer behavior, preferences, and desires are reliable indicators of what strategies your brand needs to implement.

Ultimately, these strategies can be effective if you pair them with an enticing customer loyalty program because it increases customers’ likelihood of buying.

Increasing Purchase Value

Another common strategy brands use to get more from their existing customers is increasing purchase value (getting them to buy a higher-valued item). Increasing a customer’s purchase value can be an excellent long-term play, mainly if they stick with the higher-priced item, even without your prompts.

This strategy can be implemented primarily on quick-service restaurants when the cashier asks, “would you like to upsize that.” Moreover, another subtle strategy companies use is the anchoring technique. This is when they present you with three options – Small, Medium, and Large – with the Large always being more bang-for-your-buck than the Medium one. So, you end up getting the Large option.

This is also where upselling comes in. Upselling is when brands ask you if you want an upgrade on your purchase. For instance, you’re buying the latest iPhone 14 ProMax 256GB, and the product specialist asks if you’ll get the 512GB instead to store more photos.

Increasing Basket Size

Increasing a basket size is when you encourage customers to get more products than they intended. You can see this often on e-commerce sites when they offer products that go well with what you’re buying. Or they’re suggesting products that are “frequently bought together” with what you’re buying. Traditionally, this is when cashiers at fast food restaurants ask if “you’d want some fries with that.” Or if you want to take home another order.

These strategies are usually called cross-selling. If upselling is upgrading a current product, cross-selling, on the other hand, is when you offer related products to make the purchase “better” for the consumer.

Going back to the smartphone example. Aside from upselling you with a higher memory, the product specialist might also offer you accessories like Bluetooth headphones, wireless chargers, and protective accessories for your gadget.

Increasing Customer Advocacy

The last strategy businesses use to earn more from their existing customers is to turn them into brand advocates who share the brand with friends and family.

Brands do this through gift cards, gift packages, or bundle promos for their customers.

Usually, you’ll see brands come up with special promos/bundles during hallmark events like Valentine’s Day, Father’s Day, Mother’s Day, and other celebrations. This is to encourage their existing customers to buy their products, not for them, but for those around them who might become customers too.

Another typical example is when restaurants do group meal deals, so you’ll bring your friends and family over for a meal.

Finding the Right Strategy for Your Brand

None of the strategies above are a one-size fits all approach. These are just guides and springboards for new ideas. Ultimately, what you need to do to find the right strategy is to listen to your customers and understand what they want.

Consumer behavior, preferences, and desires are reliable indicators of what strategies your brand needs to implement.

Ultimately, these strategies can be effective if you pair them with an enticing customer loyalty program because it increases customers’ likelihood of buying.

Benefit #8: Increased customer lifetime value: By retaining customers and encouraging them to spend more, you can increase the lifetime value of their customers, resulting in increased revenue and profitability.

Customer lifetime value measures the total amount of money a customer might spend with a business over their relationship with the company. When you increase your customers’ lifetime value, your customers spend more money with your brand, leading to increased revenue and profitability.

For example, suppose a business can increase its customers’ lifetime value by 10%. In that case, those customers will spend 10% more with the company over their relationship. This increase in spending can result in a significant increase in revenue and profitability for the business.

So if you’re earning PHP 1,000.00 per customer every year and you have 10,000 customers, a ten percent increase in their lifetime value would equate to an additional 1,000,000 in sales for your business.

Benefit #9: Better competitive advantage: Loyalty programs can help you differentiate yourself from your competitors and create a unique selling proposition.

A competitive advantage sets your business apart from competitors and gives it an edge in the marketplace. This attribute can be a unique product or service, a strong brand, a loyal customer base, or any other factor that gives the business an advantage over its competitors.

When your business has a competitive advantage, you can attract more customers and gain a larger market share. This advantage can lead to increased revenue and profitability for your company since you can capture a larger market share and generate more sales.

In today’s fast-paced business environment, it is crucial for businesses to continuously innovate and find new ways to differentiate themselves from their competitors. A healthy number of loyal customers can provide the stability and flexibility your business needs to respond to market changes and stay ahead of the competition.

Benefit #10: Improved customer referral rates: Satisfied and loyal customers are more likely to refer their friends and family to your business, leading to increased word-of-mouth marketing and new customer acquisition.

Referral rates matter because they provide a valuable source of new customers for your business. When a customer refers a friend or family member, it means that they are happy with the products or services they received and want to share their experience with others. This referral can lead to new customer acquisition for your business, driving revenue and profitability.

Additionally, the referral rate is a valuable metric for businesses. By tracking referral rates, you can understand which customers are most likely to refer others to the company. This information can help you identify your most loyal and satisfied customers and target their marketing efforts to increase referral rates.

This metric also tells whether customers like your products or services enough to share them with friends and family. If your customer referral rate is low, consider investigating why your customers are not recommending your products.

Furthermore, referrals are significant because they can be a powerful form of word-of-mouth marketing. When customers refer a friend or family member to a business, they give the company a personal endorsement. This referral can be a very effective form of marketing, as consumers are more likely to trust the recommendations of people they know and trust.

In conclusion, customer loyalty programs are an effective way for businesses to retain customers, increase engagement, and drive revenue. By offering rewards and incentives to your loyal customers, you can improve customer satisfaction, gain valuable insights, and create a stronger emotional connection with your brand. Whether a small business or a large corporation, a customer loyalty program can help you achieve your business goals and succeed in today’s competitive marketplace.

Starbucks Rewards: Starbucks offers its customers a loyalty program called Starbucks Rewards. This offering comes as a physical card or a mobile app, where customers earn points for each purchase they make at Starbucks. Users can exchange their points in-store for free food and drinks, including special, limited-time offers. The rewards app also offers personalized recommendations and exclusive discounts to members. Aside from rewards, Starbucks Rewards users also get freebies on their birthdays.

The Starbucks Rewards program accounted for 53% of the company’s revenue in the US. This data shows us that a well-run rewards program can significantly increase a company’s revenue through repeat purchases. 

Amazon Prime: Amazon Prime is a subscription-based loyalty program that offers customers a variety of benefits, including free two-day shipping, access to streaming services like Prime Video and Prime Music, and exclusive discounts on certain products. Amazon Prime has proven highly successful, with over 150 million members worldwide.

Moreover, according to Amazon, around $25.21 billion in revenue is generated from Prime. And on average, Prime users spend about $1,400 annually on the platform – a significant increase from the $600 spent by non-Prime members. 

Sephora Beauty Insider: Sephora’s Beauty Insider program allows customers to earn points for each purchase they make at Sephora. Members can redeem their points for free products, special discounts, and access to exclusive events. Beauty Insider members also have access to personalized product recommendations. Plus, they can participate in the Sephora Rewards Bazaar, where they can trade their points for limited-edition products and experiences.

In North America alone, Sephora Beauty Insider already has more than 17 million registered members, and they account for 80% of the brand’s total sales. Moreover, the loyalty program increased its cross-sell value by 22% and upsell revenue by 51%.

These examples from successful brands show us how powerful customer loyalty programs can be. The right program can encourage customers to spend more on your brand, leading to higher revenues for your business.