Ecommerce Remarketing – Its Advantages And Disadvantages

Ecommerce Remarketing – Its Advantages And Disadvantages

by Wasim Ismail on October 18, 2011

Ecommerce Remarketing is an online marketing strategy, used by marketers to convince a potential customer, who previously visited their website but did not make any purchase – to visit the website again, but this time make to purchase. The idea in this strategy, with the help of Google Adwords, is to convert a previous visiting customer to a paying consumer, thus avoiding abandonment of shopping cart.

“Abandonment of shopping cart” is a usual term used by online shoppers and sellers that refers to customers who select items to purchase but do not complete the buying transaction. Customers do this for various reasons, which is why online businesses sort to ecommerce remarketing, with the use of behavioral email and web analytics to find out the reason and address the issue so as to persuade the customer to make the purchase.

In order to make things a lot clearer and in order to help you decide as to whether E-commerce marketing will work for you – here are some of its advantages and disadvantages.

The advantages of Ecommerce remarketing are as follows:

  1. Significant Increase in sales and profits – this is due to the fact that the concept of revisiting is to close a sale that previously was not completed.
  2. Ecommerce Remarketing is also cost effective, thus, making it a money saver on the part of the marketer. It is cost effective in the sense that the online business can cut costs from marketing ads, because businesses can just do the follow-up marketing either thru email, phone calls, or, just by using the same advertising ad – but with a different pricing.  In other words, you won’t have to make another ad to send to your customers.

Online businesses can also save time and money by doing follow-ups on interested customers only, like for example those who previously attempted to purchase or those who inquired prices and details about an item. With this strategy you can now focus on satisfying only those customers that has a better chance of buying something.

  1. Setting adjustable price quotas is another advantage of ecommerce revisiting. This is because if price lists are visible and accessible by the customer, and if the marketer finds out that another competing website is decreasing its prices on the same product – then the marketer can have the option of adjusting its prices as well, and then send emails to potential customers in order to check the new prices out and to convince them to make purchases right away.

The disadvantages of Ecommerce Remarketing are the following:

  1. You cannot insure that your remarketing strategy might work on your customer. In some cases those customers that abandoned their shopping cart are no longer interested or were never interested in your product in the first place.
  2. Remarketing does not apply to websites or to online businesses that do not ask for any email or information details from a visiting customer. This is especially true with web pages that contain only basic information about the company and the products and the services that they are providing.
  3. Privacy concerns on browsers also limit the success of remarketing campaigns, like for instance if the customer’s cookie is not set-up to receive adverts.
  4. Emails sent to potential customers might be considered spam and may not be read by the customer, making your campaigns useless. Or if you send too many emails to single customer, it may result to the customer responding to the email – but only to unsubscribe.
  5. On the consumer’s point of view, constant advertising that can be seen in a form of pop-up messages after and/or before entering WebPages might be considered annoying and may provide a negative result.

Ecommerce Remarketing is an effective way to increase your business.  Think of it as a second chance to get a sale from a customer that got away the last time. This is likewise an excellent way of keeping old clients updated – by constantly informing them of the new products that you are providing.  Hence, it can be an excellent way of ensuring the continued membership of clients and profits for you.

Image by: SXC

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Internet Marketing

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