Retargeting in holiday season
Who does not love a holiday season? E-commerce industry loves it too; it welcomes its customers with great offers and deals. During the Black Friday event in Brazil, we saw a significant increase in sales across major players. The sales grew by ~9 times during this period for one of the major electronics e-commerce websites.
Below are a couple of graphs highlighting the spike during Black Friday event:
So how can re-targeting be used as an effective tool in comparison to the other digital marketing channels during the holiday season?
1. Use of historical data to show relevant products and create segments based on user-behaviour
It is interesting to note that the evaluation period for the customers on this website for the sale period is around one week; where we observe an increase in website traffic. During this time, the potential customer is in research phase and still deciding on which products to buy. The sale may not be great during this week. However, the users who have spent considerable time researching are very important. This is where retargeting comes into play.
Any user who has seen products on the website and spent time on researching about the products is more likely to buy during sale period. Retargeting acts as a trigger to this action and gives the final push to the decision making process by showcasing customized banners(based on past browsing history)
Vizury creates customer segments based on multiple user-behaviour attributes and focuses on users with highest probability to buy, thus maximizing the ROI for the client. For instance: One of the important attributes could be the Average order value (AOV) .It can be clearly seen from the below graph that AOV increases during the sale period. Vizury prioritizes users who have abandoned cart and have a high basket value.
2. Push Products
By definition, these are the list of products which clients want to promote aggressively (usually products with high discounts and products which are introduced during the event).
Performance of push products during sale period:
Around 200 client recommended products contributed to more than 45% of the website sales during the holiday season for a major e-commerce website. Any marketer would want to spend the maximum $ on the marketing activities of these products. Vizury’s push product algorithm ensures that such products (based on their category) are prioritized over other products and are shown more often on banners. We also chase users visiting these products aggressively.
3. Category Analysis
Distribution of sales by category:
Customers associate a certain website to products of a particular category. For e.g. Website XX has the highest discount on products of category YY. Thus, top selling categories on the website generally has the highest sales during such an event. We prioritise the products of these categories over others in combination with focusing on categories with highest % increase in sale.
4. Target wider population
The user intent to purchase on the website varies inversely with the time since dropped off. However, during sale period it makes sense to target and bring back the customers who have not visited the website recently. The effectiveness of targeting these customers increases by showing the push products in our banners.
5. Use of Social Channel
Social media has been the new nitro-boost that re-targeters were waiting for.
- Social media like FBX helps in engaging customers for a longer period than other marketing channels.
- Social media has a great influence on buying behaviour of potential customers. The CVR on social media is significantly higher than many of our conventional marketing channels.
- Social media has shot up the overall unique reach by ~20-30% in most campaigns.
6. Communication about the website offers through customized banners
- Vizury helps in showing customised offer messages in banners to which in turn increases the CTR.
- Banner theme matches the overall website theme during the sale period; to ensure higher brand recall.
Customised Black Friday banner examples:
To Summarize – During the holiday season, re-targeting offers multiple levers to marketers to invest in the right customers and display relevant products. When used effectively, the contribution of re-targeting (as a marketing tool) to the website sales increases many fold. We look forward to a great sale period during the upcoming holiday season while continuously innovating to help our clients succeed.
Merry Christmas and Happy holidays! We will see you next year.