How Retargeting Ads Can Help Recover Lost Sales

Online businesses face a common challenge: potential customers who leave without completing a purchase. These “lost sales” occur far too frequently, with cart abandonment rates as high as 69.8%, according to the Baymard Institute. Luckily, retargeting ads can help businesses re-engage these prospects and recover lost sales. This post dives into how retargeting works, why it’s an essential strategy for eCommerce and online retailers, and actionable steps to make it work for your brand. By the end, you’ll understand how to leverage this powerful tool to convert browsers into buyers.

 

Understanding Lost Sales 

Before we explore retargeting, it’s essential to grasp why sales are lost in the first place. Two of the most common causes are cart abandonment and website drop-offs. 

Reasons for Cart Abandonment 

Cart abandonment happens when a customer adds items to their cart but leaves before completing the purchase. Here’s why it occurs:

• Unexpected Costs: High shipping fees or surprise taxes can scare buyers off. 
• Complicated Checkout Processes: Long or unclear forms cost sales. 
• No Urgency: Customers often leave their carts with plans to “buy later” but forget. 
• Lack of Trust: Without visible security measures, shoppers might hesitate to submit payment details. 

Causes of Website Drop-offs 

Beyond cart abandonment, some users leave after exploring just a few pages. Why? 

• Poor Website Navigation: If users struggle to find what they’re looking for, they’ll exit. 
• Slow Load Times: Even a few seconds of delay can discourage site visitors. 
• Irrelevant Offers: Shoppers expect tailored recommendations—not generic ones. 

When combined, these factors create a significant hole in your sales funnel. Retargeting ads can help. 

How Retargeting Works 

Retargeting is a form of online advertising that targets users who have previously visited your website but didn’t convert. Here’s how the process works step-by-step:

1. Tracking Customer Behaviour 

When a visitor lands on your website, a small snippet of code called a “pixel” (often from platforms like Facebook or Google Ads) tracks their interactions. This data reveals what pages or products they viewed.

2. Audience Creation 

The pixel stores this behavioural data and segments users into audiences based on their actions. For example:

• Visitors who abandoned their carts. 
• Users who browsed specific product categories but didn’t buy. 

3. Targeted Advertising 

Retargeting ads are then displayed to these segmented audiences across various digital platforms, reminding them to finalize their purchase. These ads are dynamic and can showcase the exact product they were eyeing.

Retargeting’s key strength lies in its ability to help brands circle back to potential customers and recapture their attention. 

Benefits of Retargeting Ads

Why should you, as an eCommerce business owner, invest in retargeting ads? The reasons are compelling:

1. Boost Conversion Rates 

According to Google, retargeted website visitors are 70% more likely to convert compared to new visitors. These users already demonstrated an interest in your products or services. A nudge in the form of a well-timed ad is often enough to seal the deal.

2. Cost-Effectiveness and ROI 

Retargeting campaigns are cost-effective because they focus only on highly qualified leads. Instead of casting a wide net, you allocate your budget to audiences already familiar with your brand, increasing your ad’s relevance and reducing wasted ad spend.

3. Improved Brand Recall 

Repetition matters. On average, buyers need to see a brand seven times before making a purchase. Retargeting helps ensure your business stays at the top of the buyer’s mind during the buyer’s decision-making process.

4. Cross-Selling Opportunities 

Retargeting ads isn’t limited to recovering abandoned sales. You can also upsell or cross-sell by showcasing complementary products to customers who made a purchase, encouraging repeat business.

Platforms for Retargeting Ads

Numerous advertising platforms can run retargeting campaigns, each offering unique tools to help you connect with lost buyers. Here’s a breakdown of the most popular options:

1. Google Ads 

Google Ads enables retargeting through its Display Network and YouTube. It provides extensive reach, as your ads appear across millions of websites and videos. Google also offers advanced audience segmentation and performance tracking.

2. Facebook Ads 

With its highly specific targeting tools, Facebook remains one of the most popular platforms for retargeting ads. The ability to create customized audiences and show tailored ads on Instagram makes it a go-to choice for brands with visual products.

3. AdRoll 

AdRoll offers sophisticated retargeting capabilities across both social media and display advertising networks. Its integration with eCommerce platforms, such as Shopify and WooCommerce, makes it seamless for online retailers.

4. LinkedIn Ads 

If your business targets professionals or B2B customers, LinkedIn Ads allows for retargeting ads based on job titles, industries, or even specific companies.

Select the platform that aligns best with your audience and campaign goals.

Best Practices for Effective Retargeting Ads

To truly maximize the power of retargeting ads, follow these actionable tips:

1. Segment Your Audience 

Not all visitors have the same intent. Tailor your ads for specific behaviours, like:

• Cart Abandonment Ads: Encourage users to checkout with an offer (e.g., free shipping). 
• Product Discovery Ads: Showcase items similar to those of users who browsed certain product categories.

2. Personalize Your Ads 

Leverage dynamic ad templates that automatically display the exact product or service a user viewed. This hyper-personalization increases relevance and clicks.

3. Use Clear CTAs 

Ensure your ads have concise calls to action that guide the viewer. Examples include:

• “Complete Your Purchase Today” for cart-abandonment ads. 
• “Check Out Similar Products” for product discovery.

4. Test Ad Creatives 

Experiment with different visuals, messaging, and formats to see what resonates most with your target audience. A/B testing can help identify the winning combinations.

5. Impose Frequency Caps 

Overexposure to the same ad can annoy potential customers. Set limits to prevent your ads from becoming intrusive.

6. Offer Incentives 

Entice customers to take action by providing additional value, such as:

• Discounts on final purchases. 
• Bonus points for loyalty programs.

 

Retargeting ads are one of the most powerful tools in an eCommerce business owner’s arsenal. They help you re-engage potential customers, improve conversions, and establish a stronger connection with your audience. Take the time to understand where your sales are slipping, target those users effectively, and create personalized ad experiences that bring results. Are you ready to capture lost sales and grow your business? Start planning your retargeting strategy today—it could be the difference between potential customers leaving your site forever or returning to complete their purchase.