The Psychology Behind Retargeting: Why It Works and How You Can Use It
Retargeting, also known as remarketing, is a digital marketing strategy that targets users who have previously interacted with a website, app, or online ad but did not convert or take a desired action. By understanding the psychological principles behind its effectiveness, marketers can design retargeting campaigns that not only resonate but also maximize conversions. It is an important tool to companies that offer internet marketing services.
Psychological Principles Behind Retargeting
- Familiarity & Recognition: When a user sees an ad for a product or service they've recently viewed, the recognition stimulates a feeling of familiarity. This cognitive bias, known as the "mere exposure effect," suggests that people tend to develop a preference for things merely because they are familiar with them.
- Loss Aversion: People tend to fear losing out more than they look forward to gaining something of equivalent value. Retargeting campaigns, especially those that come with a limited-time offer, tap into this fear of missing out (FOMO).
- Incomplete Task Effect (Zeigarnik Effect): Named after psychologist Bluma Zeigarnik, this effect states that people remember uncompleted or interrupted tasks better than completed tasks. If a user visited a site and didn’t complete a purchase, this “unfinished business” can linger in their mind.
- Consistency & Commitment Principle: If someone has shown interest in a product by visiting a page or adding it to their cart, they've made a small commitment. Retargeting helps nudge these users towards consistency with their initial behavior by completing the purchase.
- Reinforcement: Seeing the product or service repeatedly reinforces the value proposition and benefits, making it more likely for the viewer to convert.
How to Apply These Principles in Retargeting Campaigns
- Segmentation: Segment your audience based on their interaction level. For instance, target cart abandoners differently from those who merely viewed a product. Tailoring messages to each segment increases relevancy and the chance of conversion.
- Personalization: Use dynamic retargeting to show users the exact products they viewed or related ones. This taps into the familiarity and recognition principle.
- Urgency & Scarcity: Create ads that communicate limited stock or time-sensitive offers. This can trigger the loss aversion and FOMO response, urging users to act quickly.
- Clear Call to Action (CTA): Remind users of their incomplete task by using CTAs like "Complete Your Purchase" or "Continue Where You Left Off."
- Frequency Capping: Overexposure can lead to ad fatigue and negative sentiments. Limit the number of times your ad is shown to a user within a specific time frame.
- Multichannel Approach: Use various channels like display ads, social media, and email to reinforce your message and stay at the top of the user's mind.
- Test & Optimize: Continuously A/B test your retargeting ads to determine which messages, designs, and CTAs resonate best with your audience.
- Value Proposition: Highlight unique selling points, benefits, and testimonials in retargeting ads to reinforce the value of the product or service.
- Exclude Converted Users: Ensure that once users convert, they're excluded from seeing the same retargeting ads to avoid annoyance.