No New Leads? No Problem:Expand Your Revenue with Remarketing and Retargeting Techniques
When you think of expanding your sales revenue, what comes to mind?
Most business owners tend to equate an increase in sales with an influx of new customers. And, while it’s certainly not wrong to think of new customers or new leads as a source of additional revenue, did you know that the success rate of selling to new customers is only 5-20%?
Well, what if we told you that creating marketing campaigns that retarget, and remarket, your existing clients can help you increase not only your success rate but also your sales revenue? According to Click Z, having a clearly defined sales strategy that targets your existing consumers can help you secure approximately 60-70% of all sales. After all, customers who already exist in your database make up a significant portion of your buyers. Depending on the product or service that you offer, you have the potential to upsell and cross sell to hundreds, even thousands, of clients.
If you’re looking to expand your revenue, look no further: You have everything you need to launch an effective retargeting and remarketing strategy!
Retargeting VS Remarketing: What’s in It for You?
Often used interchangeably Search Engine Journal points out that retargeting and remarketing can both help you “increase conversions to those who are most likely to buy from your brand.” The difference lies in the strategies that they use to increase said conversions.
Retargeting tends to focus on using a variety of paid ads while remarketing relies on email campaigns to reach out to individuals who have already interacted with your website. Rather than appealing to new leads, retargeting and remarketing techniques are designed to attract existing customers, or customers who are familiar with your business, which can help increase your conversion rates. Businesses can use retargeting and remarketing separately, or in tandem, to help them reach their desired audience.
More About Retargeting
Retargeting typically takes either an “on-site” or “off-site” approach.
Example: You’re looking for headphones for your brother’s birthday. After searching for several pairs on Amazon, you get distracted and head to Facebook. Suddenly, you start seeing similar product ads for headphones appear on your Facebook feed. Before you know it, you’re back on Amazon and have added it into your cart.
- For “off-site” interactions, you’ll want to target customers who share similar characteristics with your current customers, even if they’ve never been to your website. By using data from your existing consumers to gather relevant information, like search terms and insight into their online behaviours, you’ll be able to place Google ads on relevant search pages, and specialized content on popular platforms.
Example: You’re looking for headphones for your brother’s birthday. You’re hoping to find something in your area, so you’ve been searching for stores that carry headphones. However, your various news feeds keep showing you headphones on Amazon which means that Amazon can advertise to customers who type in a specific search term even if those customers have not visited their website.
Finally, refrain from making retargeting terms too general. If you’re trying too hard to retarget to everybody, your ads won’t resonate with anybody!
More on Remarketing
Not to be confused with retargeting, remarketing generally utilizes email campaigns with the goal of re-engaging customers. Common elements of a remarketing campaign include “abandoned cart” prompts, or re-order reminders, sometimes with a discount code offer, to bring customers back to the website. Depending on the product you sell, your remarketing efforts can be customized to reflect the pain points of your customers, and to emphasize certain services, like subscription packages, that will benefit them. Remarketing allows you to connect with a large number of customers in a short period of time.
If you have a CRM or other analytics tool, you can even create several different campaigns to address multiple customer needs and nuances in buying behaviors.
Example: By analyzing consumer spending habits, you can create a “re-order” e-mail that will automatically notify customers when they need to re-order a product or service.
An insurance company might send out a remarketing campaign during winter that reminds its customers about winter tires or discounts, or even travel insurance rates, for the coming season. The courteous reminder might also present new offers, like special pricing for bundling your home and life insurance, that are exclusive to existing clients.
Remember that most customers might only come to you for a single product and may not know about any of your other product offerings. Remarketing not only educates your customers on your selection of services but also help you expand your sales revenue by showing them your value.
How to Monitor Your Expansion Revenue
Once you’ve started to retarget and remarket, you’ll want to pay close attention to your expansion revenue. Expansion revenue, which refers exclusively to the total growth revenue generated from your existing customers, is a key indicator of your business’s current and long-term success. You can use what’s called Net MRR churn (monthly recurring revenue) to identify where your business is growing, or shrinking, according to your monthly sales. Net MRR churn will tell you the total amount of revenue that has been lost in the past month and illustrates how your existing customers’ spending habits shape your company’s overall growth.
Medium provides an excellent example of how to calculate your net MRR churn rate, which we’ve summarized here in the following steps:
- Subtract your expansion MRR, the revenue gained from upgrades or service expansions, from churn MRR, the total amount of cancellations or losses from the month.
- Next, take the total from step one and divide it by the MRR that you had at the beginning of the month (your total revenue).
- Multiply that number by 100 to get a final percentage.
Your equation will look something like this: [Equation]
If your expansion MRR exceeds the churn MRR, your net MRR will be a negative number. Of course, most businesses will aim for a net MRR churn rate of zero or lower to keep growing their expansion revenue.
However, you must be cautious when using Net MRR churn rate as a metric for growth, since churn rate “is a reflection of your product market fit and targeting the right customers. While Net MRR Churn Rate is a good number to measure, it can hide useful information if tracked exclusively as it combines unhappy and happy customers.” Therefore, business owners must do more than keep their Net MRR at zero: they must also focus on finding ways to creatively service existing customers if they want to see continuous sales growth.
Hit the “Retarget” Button on Your Business
New leads are fun and exciting, which makes it easy to forget that new customers aren’t the only customers that contribute to your business’s growth. If you’re experiencing slower-than-usual sales, connect with Symetric today to create your own retargeting and remarketing strategies to help supplement revenue expansion!