4 E-Commerce Remarketing Strategies to Optimize ROI

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In this highly competitive E-Commerce space, there is a very high cost of acquiring new audience using PPC channels. With the client’s majority investments targeted towards getting more new customers to the website, customer retention doesn’t really get much focus.

Hence, remarketing strategies focusing on audience buckets are deprioritized. Going by the simple 80-20 rule, 80% of your profits/revenue shall be reaped from 20% of your existing customers. It becomes all the more important to cultivate and nurture the present base of customers and keep them engaged.

Appealing more to logic, it also makes sense that your repeat customers are going to spend more than your new customers.

Wouldn’t you want to invest in them then?

High customer retention allows you to scale your business and increase revenues too. When done right, customer retention can also bring in new customers.

What’s the flip side?

Dissatisfied people tell 22 people about their bad experiences. There is a reason why you find a lot of people dishing out bad reviews but rarely find one making an effort to give a good review.

We shall worry about the 22 later, looking at the positive side of things, for now, let’s focus on those other 9.

That brings me to the purpose of this article – what can we as online marketers do to reach out to those 9.

I shall focus on that one activity today which is largely glossed over till you have run out of your usual bag of tricks for Google Remarketing. 

Leveraging RLSA with Analytics Audience

1) Using Competitor Keywords in your RLSA Campaigns

Competitor terms are expensive. Running regular search ads on these terms usually isn’t profitable. It’s a difficult tradeoff between bids and coverage which quite often ends in you giving up on the campaign and shutting it down.

But why not remarket to the people who have already visited the website before? not converted and are now searching for competitors.

These people clearly have had some interaction with your website but decided to still look out for your competitors. Double down on them. Get them back. Try to enhance their experience with targeted ad text.

Unless you are desperate, I would suggest minimal usage of offers. People pulled back with offers are difficult to retain for obvious reasons. Rather, I would say connect offers to the right customer segment.

2) Remarketing to your Impulse Buyers

Facebook is known to generate high user interaction. But this time, I don’t want to go after the people who have stayed on the website for long. I want to go after the ones that have directly landed on the product page and immediately moved to making a conversion.

These are usually your Impulse Buyers. Remarket to them on search. Particularly the ones who have converted just once or twice. Try to move them up the ladder of AOV or Cart Size.

To give you an idea of the impact created, I went through one of our major client’s product performance data of 30 days and derived clusters basis the AOV ( Average Order Value ) observed on the website.

Poring over the data and playing with the product mix numbers we were able to make some hypothesis. I’ll explain myself.

Case 1 

I’ve allocated my additional spend on the first bucket 0-500. Be it acquiring new customers or even remarketing, the end results of scaling this bucket gives me de-growth.

Case 3

This case gives me the best scenario with the ROAS ( Revenue on Ad Spend ) is actually growing by 0.4%(check Table 4).

Just pumping more money behind pulling customers from lower buckets to this higher one (1000-3000) by remarketing to them could give me positive growth in my revenues.

Check the tables below where I have highlighted each case. Note the currency is INR & data is for 30 days.

E-Commerce Remarketing

Table1. Increasing spend on Average Order Value (0-500) product set. Spend in INR.


E-Commerce Remarketing

Table2. Increasing spend on Average Order Value (500-1000) product set. Spend in INR.


E-Commerce Remarketing

Table3. Increasing spend on Average Order Value (1000-3000) product set. Spend in INR.


E-Commerce Remarketing

Table4. Compiling All cases – Case 3 showing maximum impact on revenue

Through this hypothesis, we can see, how investing our efforts on high revenue product clusters helped us get higher overall ROI.

3) Converting 1st Timers into Repeat Buyers

Segment people who have made just 1 purchase(last 90 days is a good window to look at) and people who are repeat purchasers.

Retention and recidivism are important in the case of 1 purchase users as they can easily forget about your website the next time they are in the purchase journey.

How do we capture them on RLSA? Identify and bid on top of the funnel and mid-funnel keywords in separate campaigns and try to get them back to the website to improve the two “R’s”.

The hypothesis being that these people are in the awareness and consideration again so the keywords being used would need to cater accordingly.

4) Cart Size Driven Remarketing

Profits can be reaped if we segment people basis the Avg. cart size of the order and frequency of their purchase and remarket to them with higher price points.

The idea is that the purchaser has a higher affinity towards the website now. Right messaging and offering the right product mix could lead him to buy a higher ticket item with your website.

Again, the above data segmented at category level should help you identify the pockets where you could move the purchaser.

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