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Behavioral Retargeting: Key To Increase eComm Conversion 2X!



How behavioural retargeting ad campaigns can increase eCommerce store conversions

Is it time to say goodbye to infallible ad retargeting strategies? Maybe yes, if you aren’t ready to adapt the new strategies focusing on first-party data-based behavioral retargeting.

You can increase your Return on Ad Spend (ROAS) by 2-3X times with unerring behavioral retargeting strategies. We’ll show you how.

What is Behavioral Retargeting?

Behavioral retargeting is the art of understanding the users’ behavior and being able to retarget them using ad campaigns relevant to them.

How Behavioral Retargeting Worked before?

Facebook Pixel collects user identity and behavioral characteristics using third-party browser cookies when a user visits the website.

Meta, with its complex algorithms, matches the data sent by pixel with that available in its database to show the customers relevant ads.

For example, just a month before the user’s birthday, we can show them an ad that displays, “Birthday is coming, look like a princess – Check this beautiful white dress”

With behavioral advertising, the probability to  convert the audience with personalized ads instead of a regular display ad is very high.

Infographic step-by-step procedure showing how behavioral retargeting works in getting you higher ROAS! CustomerLabs logo is also present in the image. This is how it works. User visits your site, he leaves your site, then your behavioral retargeting ad appears to him on other website, that captures his interest to come back to your site to become a loyal customer

Sudden Fall in the Performance of Retargeting Ad Campaigns – The Cause & Effect 

With more importance to user’s data privacy, several governments & firms have come up with laws and regulations regarding data collection/usage.

To name a few,

Google will no longer assign the advertising ID, reducing the retargeting ad campaign performance.
Apple ios14 permission opt in. The prompt in an apple iPhone showing the screen of permission whether to ask the app not to track or allow.

All of the above cause lesser data available to Meta and Google affecting the performance of behavioral retargeting ad campaigns.

User behavior data helps improve upselling for your e-commerce business: The image shows why behavioral retargeting ads is no more possible due to the iOS 14.5+ updates, Android privacy sandbox update, and other privacy regulations.  Facebook/Meta and Google have limited access to user behaviour data making it difficult for behavioral retargeting ad campaigns to work. CustomerLabs has come up with a solution that is using First party data.

For most businesses, the effect of the privacy updates is evident with a drastic decline in match rates.

How to comply with Privacy Updates and yet provide users with better personalized ads?

Here’s What Google & Facebook Say

Google and Facebook have emphasized time & again to provide first party data to run ads. It is pretty much clear that they are prioritizing first party data. But why?

First party data will help their algorithms improve user experience by understanding user behavior as it is the data provided by users themselves. 

From a survey by BCG, it is evident that First-party data can help increase your revenue by 2X times.

If informed of the usage, people are ready to share their data. This makes it easier to collect first party data.

With more first-party data, you can achieve higher ROAS using ad personalization by running the best Facebook retargeting ads.

The image shows a tip box with the text 
Why does personalization matter?
McKinsey’s recent survey shows more than 70 % of the respondents find personalization valuable when making purchases.

Ad personalization is showing the right products to the right audience and engaging them at the right time.

Double your Ad Campaign Performance with First Party Data – The Savior

You can collect your first-party data from various sources – your website, online surveys, newsletters, offline store visits, etc., and then sync it with ad platforms to segment and run personalized ads.

However, with the ad platforms, there is a problem with audience segmentation.

Limitations of Audience Segmentation with Meta

Meta’s default audience segments are not equipped to create high-performing hyper-personalized ad campaigns.

You realize there are only limited default audience segments and they are:

  • Page view
  • Added to cart
  • Added to wishlist
  • People who visited specific pages

These segments do not help run hyper-personalized ads. Thus, behavioral retargeting campaigns fail to achieve the maximum ROAS possible.

Advanced Audience Segmentation: Solution to Increase ROAS

With CustomerLabs, you can perform advanced audience segmentation of your data overcoming the limited audience segmentation offered in Meta ads manager to run the best Facebook retargeting ads.

Step by Step procedure showing how first party data works in increasing match rates and therefore higher ROAS with first party data. CustomerLabs No-Code CDP  - infographic designed by Goutham Veerabathini

Few of the e-commerce advanced audience segments you can have with us are:

  • Added to cart but not purchased within last 28 days
  • Viewed a specific product for more than 2 times
  • Cart abandoned for more than 30 days

You can seamlessly integrate and sync your segments with various destinations including ad platforms using CustomerLabs CDP. Therefore you can run the best Facebook retargeting ads & Google retargeting ads.

Image showing how CustomerLabs helps you gather your first party data with high intent audience and can seamlessly sync it with Ad platforms such as Meta Ads Manager and Google Ads Manager

This helps you achieve higher ROAS as the users see highly-personalized ads pointing them back to the website to make a purchase.

Drive Higher ROAS with First Party Data using CustomerLabs CDP

How Micro-segments can Help eCommerce Businesses

Micro segments created from the huge audience size provide detailed user behavior, and these user intent signals are synced with ad platform algorithms to increase the ad reach.

Some of the micro segments you can consider having in your list are

  • Viewed a specific product for more than 2 times and Added to cart but not purchased within last 28 days
  • Added to wishlist but not purchased in the last 15 days
  • Abandoned the cart for more than 365 days
Micro-segment audiences with CustomerLabs CDP and sync to Ad platforms to get higher ROAS.

How India’s leading fashion brand W for Woman implemented advanced audience segmentation:

W for Woman knows the strategy, but a collection of first-party data and advanced audience segmentation was missing to enhance their ad campaign performance based on user behavior.

W for Woman achieved a startling 30% increase in ROAS using behavioral retargeting ad campaigns post-privacy updates

With CustomerLabs, they have run high-performing hyper-personalized behavioral advertising campaigns which became the best Facebook retargeting ads.

How behavior targeting improves Upselling & Cross-selling


After adding to the cart, if you already have user behavior, you can show the customer other related products increasing the total cart value. For example, when you go to Mcdonalds’ after you finalize your order, the person suggests coke and french fries. This is cross-selling.

McDonalds cross-selling strategy with image having burger, fresh fries and coke

Up Selling

Whereas on the other hand, if McD offers you the option to go for a combo offer that would include the product you purchased along with others, that is called upselling. In the same example, if Mcdonalds’ suggests a meal combo that includes a burger, french fries, and coke when you order only a burger, it is called up-selling.

McDonalds upselling strategy with image having burger, fresh fries and coke combo offer

Would you like to have fries with your burger and shall I replace the medium coke with a large one?

~ McD

Behavioral Retargeting: Key to Personalized Marketing

To conclude, first-party data, along with advanced audience segmentation, comes to you as a savior in the future era of cookieless marketing to run behavior-based retargeting ad campaigns.

Collect the first party data to understand your customers’ behavior and retarget them with personalized ads to drive higher ROAS.

Boost your ROAS by 2X times using first-party data with CustomerLabs

Frequently Asked Questions (FAQs)

Once the customer leaves the website, you can track the customer using first party data and show them a targeted ad on the next website/social media / search they visit.
Retargeting based on user behavior is a very effective ad campaign strategy because you are engaging the users who already are aware of your product and the brand.
While retargeting primarily comprises paid ads, remarketing is a broader term that includes personalized email campaigns and others.
As you are targeting a user who is already aware of your brand, the cost incurred on this customer would be less although the probability of purchase being high. Therefore, higher ROAS is the main benefit of retargeting among others.
You can split your ad budget into 3 ratios - Top-funnel:Mid-funnel:Bottom-funnel as 60:30:10. With just 30% of your current ad budget, you can reach out to the 55% mid-funnel audience. Therefore, it is for sure a perfect and economical strategy to increase your ROAS.
No, behavioral advertising on any ad retargeting platform enhances user’s experience as it acts as a reminder to the user to check out a particular product

Marketing enthusiast who enjoys writing articles on a wide range of topics including Marketing, SaaS, Technology, Construction, Life lessons, Public Policy Nature, and Sustainability. Good at Public Policy analysis with a deeper understanding of societal issues and potential solutions. Also loves to volunteer & contribute to society in every possible way.

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