10 Simple Customer Retention Tactics Using Paid Ads

10 Simple Customer Retention Tactics Using Paid Ads
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Shahzad Saeed

Last updated November 29, 2016


  • 2778 Views

Advertising is the easiest way to acquire new customers for your business. Unlike other marketing tactics, online advertising allows you to effectively measure your marketing strategies and conversion rates.

According to rjmetics.com, only 32% of customers actually order second time over the course of the first year. That is, most of the acquired users used to drop off after the first sale.

In fact, according to Our Social Times, 70% of companies say it’s cheaper to retain a customer than to acquire.

Here are a few reasons why retaining your existing customers are important for your business.

  • It increases ROI: As customer retention is much cheaper than customer acquisition, focusing on retaining customers will increase ROI.
  • Loyalty and lifetime value: Customer retention increases loyalty as well as increases lifetime value of customers. Adobe has reported that if online retailers retain 10% of their existing customers, they will end up making 2x the revenue.

Let’s see how you can use advertising to retain your existing customers so that you can increase ROI as well as lifetime value of customers.

1. Launch strategy- Build brand awareness among existing customers

Launching new products can be a challenging Job.

Each time when you launch a product, you need to focus on many things like acquiring new customers, marketing your products, and many more.

Even though, it is easier to sell new product to your existing customers, but most often many companies under value the possibility of spreading the word out to existing customers.

If your existing customers haven’t visited your website for a while and if they haven’t subscribed to your newsletter, more likely they wouldn’t be aware of your new launch. So by simply approaching your existing customers and telling about your new product will bring in more business.

Use remarketing: Remarketing helps you to display ads with your existing and potential customers who have visited your website or used your mobile app earlier.You can display your ads referring about your new launch on websites that are part of Google Display Network (GDN) or on Google as they search with queries that are related to your product.

2. Provide seasonal offers

Depending on your business you may find traffic hikes in certain holiday periods.

According to statista.com, retail e-commerce sales figures are exponentially growing each year in the US during the holiday shopping season.

Use numbers

So holiday periods are one of the best ways to effectively implement your remarketing strategies.

Create ads tailored around holiday seasons: Creating a remarking list of users who viewed your site during such holiday periods will help you to create ad inventory tailored around user preference. In addition, you can use that list to send those targeted customers reminders the following year.

3. Entice your customers to return to your website by customized offers

Paying customers are bread and butter for your business. The reality is; not every user of your product is going to be your paying user.

Even if they became your customer, some of them might cancel their subscriptions. In such cases, you can entice customers to return to your website by providing exclusive discounts or coupons.

For example, Hostgator.com used to provide special 75% discount to a customer who is cancelling their hosting account. Another example- Flippa.com encourages the users to relist the domain name for free if they’ve not successfully sold it out at first attempt.

Such tactics are meant to encourage users to return to website.

Use Facebook Custom Audiences: Facebook Custom Audiences ads let you to upload lists of customer email addresses or phone numbers, and allow you to display ad specifically for such users. By this way you can display customized offers to the users who haven’t returned to your website for a while.

4. Cross sell related products

If you’ve ever purchased a product from a juggernaut retail websites like Amazon.com, you might have noticed it already. Once you purchased a product you’ll start seeing ads on various websites in GDN network that promotes product that are related to the one that you have purchased.

Use numbers

This strategy is called cross selling. Cross selling can also be implemented by remarketing using Google AdWords.

Segment your prospects for cross selling: Create a remarketing list of people who have already purchased your products. Once a user purchased a product, target them for next 180 days because those recent buyers still have you at the top of their minds.

5. Reduce shopping cart abandonment

Retargeting users who visited your website previously can be a great idea to sell more products. Though, it may work well in some scenarios, but the reality is; it won’t work for every business model.

In fact, it is not a good idea to show ads that promote similar products to customers who recently bought it from you. Chances exist that such strategies might decrease the CTR, and quality score, which will eventually increase CPC rate.

However, you can still use the potential of remarketing by targeting the users who have added products to cart but haven’t completed the sales.

Create customized ads: The main reasons of shopping carts abandonments are either price issue or customers were not ready to purchase. So creating customized ads by addressing these issues will help you increase the sales.

6. Dynamic remarketing using PLA ads

Dynamic remarketing is one of the most recent features in Google AdWords.

It takes remarketing a step further. It allows you to create customized ads dynamically that connect with your customer by reminding them of items they’ve previously seen or bought.

For example, a customer who browsed a specific category on your website might see an ad that displays the exact products that were viewed as well as a host of related products.

You can see an example of a dynamic ad below.

Use numbers

Image source: cpcstrategy.com

Traditional remarketing vs. dynamic remarketing: In traditional remarketing, AdWords picks one of your remarketing lists and displays ads to users based on the ad groups that you created manually, whereas in dynamic remarketing, AdWords displays the most relevant products from your Merchant Center feed based on the exact products your users already saw on your website.

7. Increase average order value

Let’s face it- how would you generate more revenue from your online business?

For most of us,the answer would be simple. It is by increasing both the traffic and conversion rate. So the equation is, more the number of visitors you convert to customers, higher the revenue you generate.

However, if your ultimate goal is to boost up your revenue, you should focus on one more metric apart from the conversion rate metric especially if yourbusiness is an e-commerce store. Average order value (AOV) is that important metric.

Here is how to calculate AOV.

AOV=Total revenue/no. of orders

The best thing about focusing on AOV metric is that it let you improve the profitability of your PPC ad.

Strategies to increase average order value: Instead of promoting single product, you can try advertising bulk products to your existing customers. Paperstone.co.uk, found an increase in average order value by 18.94% by selling products in bulk.

8. Build a fan base on Facebook

As you may know Google AdWords is the best platform for driving immediate sales.

Unlike Google AdWords, Facebook is best known for its ability to increase brand awareness and lead generation. In addition, it is also one of best tools when it comes to customer retention and customer loyalty.

Forrester Research has found that Facebook fans of Best Buy are twice more likely to purchase or recommend one of its products than its non-fans.

They also found that the average Facebook fan spent $368 at Best Buy in the year before the survey, and the average non-fan spent $150.

Use numbers

Define target market: Before advertising on Facebook to grow your fan base, make sure you define your target market properly. Not all 1.2 billion Facebook users are meant to be your potential customers. In Facebook, you can fine tune your customers by location, gender, age, likes and interests, relationship status, workplace and education.
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9. Use Facebook exchange

Facebook exchange (FBX) is remarketing tool of Facebook which lets you to target people based on the website they visit.

Use numbers

FBX is a real-time bidding ad exchange. When users surf the web, advertisers drop cookies on users’ browser. Facebook recognizes these cookies each time when the user logs in to Facebook.com. Based on cookies, the social network displays an ad inventory on right-hand column of the site.

Leverage Facebook Ads API: Facebook Ads API lets advertisers to create and manage a large volume of different ad campaigns programmatically rather than via Facebook’s own interface. According to a study conducted by Nanigans, when combined with Facebook Ads API, FBX ads result in 89 percent more sales.

10. Build engaged customers using promoted posts

Facebook page is the voice of your business on Facebook. By creating your Facebook page, you can connect with your loyal fans, existing customers as well as people who are interested in your content. In addition, the more engaged your customers are, the more loyal they are with your brand.

Use numbers

Recently, Facebook has decreased the organic reach for pages. So chances are; your fans won’t be seeing your Facebook posts regularly as they used to be.

Use promoted posts: Promoted post is an easy way to reach your audience and their friends. It is one of the best ways to spread the word about your new launches and events to your loyal fan base. Unlike traditional Facebook advertising, it is easy to get spotted as it appears in the news feed.

Use numbers

         

Over to you

Majority of your first time customers are in the process of filling their quick needs, and are not interested in being loyal to your brand for long term. However, if you carefully nurture your leads, you can make your customers more engaged with your brand, and thereby increase the lifetime value of your customers.

Remarketing using AdWords and Facebook ad is one of the most cost-effective ways to retain your existing customers.

Have you ever considered customer retention by advertising? Let us know your thoughts.
Check out Simplilearn's Pay Per Click Certification Training course here.

About the Author

I am a freelance writer & digital strategist. My work has been featured on popular internet marketing blogs including Problogger.net, JohnChow.com, DailyBlogTips.com, and more


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