How to increase the ROI of your retargeting campaigns

. 4 min read

What is your conversion rate? If you are a Shopify merchant, you can easily get this figure from your Shopify reports dashboard.

Whether a conversion rate is good or bad depends heavily on the industry and the kind of items being sold. However, here is a simple framework that can be used to assess your conversion rate.

  • Less than 0.5% (bad)
  • 0.5% to 1.5% (almost there)
  • 1.5 to 3% (normal)
  • 3% to 5% (fantastic)
  • Over 5% (Morphing time)

There are several factors that can cause a low conversion rate. My top 3 picks are:

  • Hidden charges
  • Poor mobile experience
  • Shipping cost

There are many other factors that can be an impediment to a higher conversion rate.

AdGeek’s Guide to Cart Abandonment  is a great resource that can help you optimize your website and increase conversions, I recommend using it to optimize your website before worrying about micro-optimizing your Ads.

So, how do I bring quality traffic to my website?

Simple, use laser targeting and prospecting. Well, it’s not that simple when it comes to laser targeting. You have to invest the time in researching and finding quality interests to target when creating Interest Ads. A tool that can help you in your research is Facebook Audience Insights. Facebook Audience Insights provides key information about particular interests such as the number of monthly active audience per interest, audience purchasing behavior, the top devices the audience use, location and related pages. Over 90% of website visitors do not convert on their first visit and 70% of online shoppers abandon their cart. These numbers show that retargeting should be part of every marketer’s advertising strategy.

One of the many questions asked by e-commerce merchants is  : “How do I increase the performance of my retargeting campaigns?”

The answer to this question lies in the quality of your website visitors. The quality of your website visitors determines how your retargeting campaigns will perform. If the quality of your website traffic is poor, your retargeting campaigns will also perform poorly.

I know the next question on your mind is the big


Let’s take this scenario in which you run an eCommerce store that sells high-value ladies’ bags.

ladies bag - retargeting campaigns

If the majority of your website visitors are teenage girls, you can do all the optimization you can but your retargeting campaigns won’t bring in a good ROI. This is because the majority of teenage girls don’t have the purchasing power to afford your high ticket luxury bags.

Retargeting the wrong visitors is a waste of dollars. No matter the amount of money you pump into your retargeting campaigns, if your website traffic is of low quality, your retargeting campaigns will never perform. I can’t over emphasize this fact.

How do I check the quality of my website traffic?

Determining your conversion rate is the best way of assessing the quality of your website traffic. Conversion rate can be derived using this formula:

Here is a guide that will teach you how to use Facebook Audience Insights for Laser targeting and drive good traffic to your website. After driving traffic to your website you can now start prospecting using lookalike audiences. This will increase the quality of your traffic.

Prospecting is a process of attracting new audiences who are likely to convert to paying customers. This is done by targeting audiences with similar interest attributes and purchasing behavior to your existing customers.

Prospecting is an effective way of attracting new audiences because it takes away most of the guess work. Instead of manually setting demographic and interest values, prospecting systems use online behavioral targeting & algorithms to serve Ads to the right audience.

You can take advantage of Facebook’s prospecting system called “Lookalike Audiences”.  

With lookalike audiences, you can create an audience set that has similarities to your existing customers. This means that you are targeting an audience that is more likely to buy from you. Always prospect with audiences that are deeper in your website funnel. You must make sure you have enough people in the segment you want to build the lookalike audience from. Facebook requires that the segment or original audience should have a minimum of 100 people to create a lookalike audience. With a typical eCommerce funnel like this one, always create a lookalike audience from visitors who have already bought from you. In this case, this will be people that viewed the “Thank you” page.

If you don’t have enough audience in that segment, then go up the funnel and create a lookalike audience with those who got to the checkout page, if you don’t have enough people in this segment to create a lookalike audience, go up the funnel and use the people in the next segment.

This is how you have to go about your prospecting, always make sure to prospect with the audience that is deeper within your funnel.

Best of luck as you run your retargeting campaigns

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