How Facebook Retargeting Boosts Customer Retention

Facebook Retargeting Boosts Customer Retention

Converting website visitors into loyal customers remains a significant challenge for e-commerce businesses. Despite attracting high traffic, many brands experience frustration when visitors browse products and add items to their carts, only to abandon their purchases before checking out. This discrepancy between interest and conversion presents both a challenge and an opportunity for marketers.

Social media provides a powerful solution to bridge this gap, with 58% of U.S. shoppers reporting that they purchased a product after seeing it promoted online. Returning visitors are particularly valuable, as repeat customers tend to spend 67% more than first-time buyers. This increased interest among returning customers creates an excellent opportunity for targeted strategies to enhance conversions.

This is precisely where Facebook retargeting can make a significant difference.

What is Facebook retargeting?

Facebook retargeting is an advertising strategy that enables you to re-engage users who have previously interacted with your brand but haven’t completed a desired action, like making a purchase or signing up for a newsletter. 

It displays customised ads to these users as they scroll through their Facebook feed, reminding them of your brand and encouraging them to take the next step.

What is Facebook Retargeting Pixel and how does it work?

The Facebook Retargeting Pixel is a piece of code added to your website that tracks user behaviour, such as pages visited, products viewed, and actions taken, and then sends this data back to Facebook. 

With this information, you can create highly targeted ads based on users’ interactions, enabling precise retargeting campaigns that address specific customer interests and pain points.

Why should you use Facebook Retargeting Pixel?

Facebook retargeting offers numerous benefits for businesses. Here’s a detailed look at the key advantages:

  • Higher conversion rates. Retargeting targets users who have already shown interest, making them more likely to convert than cold audiences.

Case in point: Retargeted display ads can drive impressive results, often achieving click-through rates (CTR) up to 180% higher and conversion rates nearly three times greater than standard ads. 

  • Improved ROI on marketing spend. Facebook retargeting directs your advertising budget toward warm leads rather than starting with cold audiences. This approach drives a higher return on ad spend (ROAS), as you focus on users who have already expressed intent, maximising campaign efficiency. 
  • Reduced cart abandonment. Retargeting ads engage users who have abandoned their shopping carts, encouraging them to complete their purchases. These ads can include incentives like discounts, free shipping, or urgency tactics, effectively bringing users back to the checkout page.
  • Personalised advertising. The Facebook Pixel collects user data, allowing you to segment audiences and deliver highly relevant ads based on their previous interactions. 
  • Strengthened brand recall. Consistent appearances in potential customers’ feeds keep your brand top-of-mind. This sustained visibility enhances brand recall, making users more likely to return to your site and convert when they’re ready to purchase.

How do you create a Facebook retargeting campaign?

Here’s how you can set up a successful Facebook retargeting campaign:

  1. Install the Facebook Retargeting Pixel.
  • Go to Events Manager on Facebook Business Manager. Select Connect Data Sources, then Web and click Get Started.
  • Name your Pixel and enter your website URL. Facebook will provide a Pixel code snippet.
  • Place the Pixel code in the <head> section of every page on your website, or use an integration like Shopify, WordPress, or Google Tag Manager to automate this step.
  • Use Facebook’s Pixel Helper Chrome extension to confirm the Pixel is active on your site.
  1. Create a custom audience.
  • Go to Audiences under Assets in your Ads Manager. Choose Custom Audience, then select Website Traffic.
  • Use criteria such as “All website visitors,” “People who visited specific pages,” or “People who spent the most time on your website”. Set the retention window (the number of days people remain in your audience after visiting your site, typically 30–90 days for high engagement).
  • Segment your retargeting audiences by actions or interests. For example, create separate audiences for visitors to specific product pages, checkout pages, or those who abandoned a cart.
  1. Develop retargeting ads.
  • Design ads that address customer hesitations, highlight unique benefits or offer incentives like limited-time discounts.
  • Use formats that engage returning users, like Carousel ads for showcasing multiple products or Video ads for brand storytelling.
  • For product-specific retargeting, set up Dynamic Ads that pull product data directly from your catalogue to show users the items they viewed or similar items.
  1. Optimise campaigns for conversions.
  • In Ads Manager, choose Create Campaign and select Conversions as your campaign objective.
  • Select the custom audiences you created in Step 2. Adjust other demographic and interest-based settings as needed for further precision.
  • Set a daily or lifetime budget and consider optimising for Conversions to maximise return on ad spend.
  1. Monitor, test, and refine.
  • Use Ads Manager to monitor metrics like conversion rate, cost per conversion, and return on ad spend (ROAS).
  • Test different creatives, offers, and audience segments to find what drives the highest engagement.
  • Use insights from testing to update ad creatives and fine-tune audience segments, optimising continuously to improve performance.

Strengthen your marketing strategy with Facebook retargeting

Facebook retargeting empowers businesses to maximise engagement, boost conversions, and build customer loyalty by reconnecting with website visitors at crucial points in their journey. With Facebook retargeting, you transform casual browsers into committed customers, making it a powerful tool for any results-driven digital strategy.

If you’re looking for support in making Facebook retargeting work for your business, Outsourced can help. We connect you with skilled professionals in digital marketing to enhance your retargeting strategy. With the right expertise, you can build stronger customer relationships and drive meaningful results. 

Start building your team today!

About Outsourced

Outsourced Philippines stands at the forefront of offshore staff outsourcing, leveraging over a decade of industry expertise to empower over 250 global clients. Our dedicated team of more than 1,000 employees, including 100+ support staff, is committed to building sustainable partnerships. 

We deliver bespoke outsourcing solutions that blend cost-efficiency with exceptional quality, catering to specific client needs across various industries from IT and engineering to creative and administration. At Outsourced, we are more than a service provider; we are a trusted partner in driving sustainable business growth and innovation. 

Discover how Outsourced can enhance your operational capabilities and set new standards of excellence for your business at https://outsourced.ph/.

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