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Why Investing In a Downsell Campaign Trumps Retargeing


Retargeting converts window-shoppers into buyers. In general, about 2% of shoppers convert on the first visit to an online store. Retargeting brings back the other 98%.

Retargeting works by keeping track of people who visit your site and displaying your ads to them as they visit other sites online.

How Retargeting Works

Think of this as a three-act play. In act one, you “cookie” visitors who visit your website. You do this with a javascript tag in the footer or header of your website to create a retargeting “cookie”.

In act two, you remind your visitor about your company, product, and/or service with retargeting ads that appear on other websites they visit. In act three, your retargeting ad compels the visitor to click on it to return to your website.

Why Retargeting Can Be Effective

Retargeting is effective because it keeps your brand in front of visitors after they leave your website. As these folks see your retargeting ads, your brand becomes more recognizable and memorable. Some of the small percent of visitors who you compel to come back to your website can buy your products and services.

How a Downsell Campaign Differs From Retargeting

A down-sell campaign enables you to follow-up with visitors to your order page or shopping cart. But instead of following up with display ads like retargeting, a down-sell campaign follows up with email. The email could contain a different offer that gets the contact to order the product or a different product with an offer that is more pleasing to them.

In a downsell campaign, you target folks who have already opted into your website. So, you already have a relationship with them. And they have journeyed further along the sales cycle.

A marketing automation system can enable you to easily set up this campaign.

Why the ROI of a Downsell Campaign Trumps a Retargeting Campaign

The big difference between downsell and retargeting campaigns is where the visitor is along the sales cycle.

In a downsell campaign, visitors are already uphill and need you to push them a little onto the top to make the purchase.

On the other hand, visitors in a retargeting campaign are at the bottom of the hill. They have not yet opted in. So, you need to carry them all the way up the hill along the sales cycle to get them to buy.

You need a much lower number of contacts in a downsell campaign to breakeven on your investment than you do in a retargeting campaign.

Furthermore, you pay much less in out of pocket costs for a downsell campaign than retargeting.

For retargeting, you must pay a certain variable amount of money for every thousand visitors you follow. This is a recurring fee.

Yet in a downsell campaign, you only pay a small fixed fee once to invest in the campaign, regardless of the number of contacts. In some campaigns, you may also pay a small royalty on sales. But this amount comes off the top, not before you earn the sale.

Now you know why it makes much more sense to invest in a downsell campaign first before you decide to invest in a retargeting. The ROI is much bigger. And the number of sales you can make can come about much sooner. And you don’t have recurring monthly costs to worry about.

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