Mar 30, 2022
In General Discussion
Like almost any retailer, a large health and email list beauty organization faces growing competition and search CPCs. The performance marketing team realizes that they cannot continue to pay increased costs to acquire the same levels of revenue from repeat customers. At the same time, the team recognizes that it can better coordinate its strategy on other channels. Retargeting, email, and direct service can work together more cohesively to drive customers to purchase once they're in the door, or back in the door, of search. They developed a new strategy to fight Google Ads, focused on identifying and treating new customers differently than returning customers. The ultimate goal is to achieve more granular return goals for new customers versus repeat customers, with repeat customers generating much more effective return than in the past. This scenario is not an isolated case. Many performance marketing teams in the retail industry want to understand how a new or returning customer model works for search. Some of the most common questions are: what do we need to know about this approach? What is the process to email list implement it? How would we measure success? Here are some best practices. 1. Realize the war for the wallet will be won at the top of the funnel A new/returning customer strategy can make a lot of sense in today's competitive climate. To why: Retailers can no longer compete for the email list bottom of the funnel. CPCs continue to rise in direct response channels like search. Average retailer CPC in Google paid search (text ads) increased 14% in 2018, reaching $0.71, according to Sidecar's 2019 Benchmark Report: Google Ads in Retail. Google Shopping's CPC averaged $0.57 in 2018, up 4%. Competition in research is at its height. Retailers are shifting the battle to the top of the funnel because they've realized the downstream benefits it offers to attract search-stage customers. Most retailers own their customers less and less.