Retargeting Offer Test: FREE Shipping or Discount?

Hi Everyone,

Today I am going to share with you a retargeting offer test result that I’ve been testing for a while.

Typically e-comm businesses have an average CV% between 2% to 4%, and of course if there’s no retargeting the CV% is even lower.

However, if you have built out a solid retargeting strategy likely your store conversion rate is good.

Why People Abandon Cart

Most of the high intent buyers leave the store at the Add to Cart stage. Some shoppers may need more time to understand and research your products, some might mind the shipping fee so they leave, and some might just consider research more for better price range, some lazy to complete the checkout process or get distracted for different reasons. These are some of the reasons why people leave without buying, and this is why retargeting is essential and works as people need to become more comfortable with your brand.

Retargeting campaigns are converting like charm, because at this stage you give them a good reason to buy now by showing them an offer to those who abandoned the cart.

The Retargeting Offer Test

I’ve been testing % discount codes vs Free Shipping?

Turned out that people preferred the free shipping code instead of discount on the product.

Of course, this depends on your shipping fees and how much your products cost. This type of offer will give the users the feeling of emergency to buy. So in the test I ran the ROAs on the discount code it was just double, while Free shipping had 3 ROAs. That’s pretty cool to understand what your customers prefer and so you know in order to scale.

There as well another version I tried but failed is a fixed amount of discount for example $5 OFF. People tend to like more a certain % OFF the full price or the Free Shipping

Definitely this test doesn’t mean that it will work magic for all e-com stores, this is my experience, but I can strongly recommend implementing it and let it run for a month and observe the changes.

The Audience We Tested

The Audiences used in my retargeting strategy were visitors for the past 30 days, in a consolidated campaign and another one excluding the past 30 days but targeting the last 180 days. Especially now in Q4 when the buyer intent is significantly increasing.

The Creatives We Tested

As for the ads showcase your products, make multi-products carousel ads as these ones can be very effective in retargeting, however if the store has a few products single ads are working very well as well, review ads are gold.

Take advantage of your retargeting campaigns and get the most out of it in this Q4.

Also, if you are spending over $500 a day and want to scale your brand.

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Have a Great Day!


Additional Resources

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