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Understanding Email Retargeting and How It Works

understanding email remarketing

Understanding Email Retargeting and How It Works

In the fast-paced world of digital marketing, it’s easy for potential customers to slip through the cracks. They visit your website, browse your products, maybe even add something to the cart — but then they disappear. Fortunately, email retargeting helps marketers re-engage those lost visitors and guide them back into the conversion funnel.

Email retargeting is a powerful, data-driven strategy that combines the precision of behavioral targeting with the personalization of email marketing. When executed correctly, it becomes one of the most efficient and ROI-positive channels in a marketer’s toolkit.

This article dives deep into what email retargeting is, how it works, its types, examples, tools, benefits, challenges, and strategies to get it right.

1. What Is Email Retargeting?

Email retargeting is the process of sending personalized emails to users based on their previous interactions with your website, app, or brand. The goal is to re-engage potential customers who showed interest but didn’t convert.

In simpler terms, email retargeting bridges the gap between interest and action. It reminds users of what they viewed, encourages them to return, and nudges them toward completing the desired goal — whether that’s making a purchase, signing up for a webinar, or downloading an eBook.

Example:

  • A visitor adds a pair of sneakers to their cart but leaves without buying.

  • You send an automated email an hour later with the subject line:
    “Still thinking about those sneakers? Here’s 10% off to complete your purchase.”

  • The user clicks, returns to the cart, and converts.

That’s email retargeting in action.

2. The Psychology Behind Email Retargeting

Retargeting works because it leverages psychological triggers that influence decision-making:

  • Recency Bias: People tend to remember recent interactions. Sending an email soon after engagement keeps your brand fresh in their mind.

  • FOMO (Fear of Missing Out): Limited-time offers or product scarcity push users to act fast.

  • Personalization Effect: Personalized content creates emotional connection and trust.

  • Commitment & Consistency: Once someone has taken an action (like adding to a cart), they’re psychologically more likely to complete it later.

By combining data and psychology, email retargeting helps you tap into intent-driven audiences who are already halfway down the funnel.

3. How Email Retargeting Works

Email retargeting operates through data tracking, audience segmentation, and automation. Here’s a step-by-step breakdown of the process:

Step 1: Tracking User Behavior

Your website or app uses tracking pixels, cookies, or tags to monitor user actions:

  • Pages visited

  • Products viewed

  • Time spent on site

  • Cart additions

  • Abandoned checkouts

This behavioral data is collected and stored in your CRM or email marketing platform.

Step 2: Segmentation

Based on the behavior, users are segmented into categories like:

  • Abandoned cart users

  • Product viewers

  • Returning visitors

  • Inactive subscribers

  • Engaged users who haven’t converted

Step 3: Trigger Setup

Automated triggers are defined — for example:

  • If a user abandons a cart for 1 hour → send reminder email.

  • If a user views a product but doesn’t add to cart → send product recommendation.

Step 4: Email Automation

The system automatically sends the right email to the right person at the right time, using personalized content, dynamic images, or discount codes.

Step 5: Tracking and Optimization

Once the campaign is live, marketers track KPIs such as open rates, click-through rates (CTR), and conversions, refining the campaign based on performance.

4. Types of Email Retargeting Campaigns

Email retargeting isn’t one-size-fits-all. Different strategies cater to different user behaviors and goals.

1. Cart Abandonment Emails

Triggered when a user adds items to their cart but doesn’t check out.
Example: “Your cart is waiting — complete your purchase before it sells out!”

2. Browse Abandonment Emails

Sent when users browse a product or service but don’t take further action.
Example: “You viewed these items. Here are some similar picks you might like.”

3. Post-Purchase Retargeting

Aimed at nurturing relationships and encouraging repeat purchases.
Example: “You loved our moisturizer — here’s a 10% discount on our night cream.”

4. Win-Back (Re-Engagement) Campaigns

Target users who haven’t interacted with your emails or site for a while.
Example: “We miss you! Come back and enjoy 20% off your next order.”

5. Cross-Sell and Upsell Campaigns

Encourages customers to buy complementary or upgraded products.
Example: “You bought a camera — how about a lens kit to go with it?”

6. Onboarding or Welcome Retargeting

For new users who signed up but didn’t explore further.
Example: “Welcome aboard! Here’s how to get the most out of your account.”

5. Tools and Platforms for Email Retargeting

There are several marketing automation tools that help execute retargeting seamlessly. Some of the most popular include:

Platform Key Features
Klaviyo E-commerce focused, deep Shopify integration, behavior-based segmentation
Mailchimp Affordable, user-friendly automation for small businesses
HubSpot Powerful CRM + email automation + behavioral triggers
ActiveCampaign Advanced automation workflows, tagging, and personalization
Drip Built for D2C brands, dynamic product recommendations
Omnisend Multichannel automation (email + SMS + push)
ConvertKit Great for creators, personalized automation and tagging

6. Benefits of Email Retargeting

Email retargeting offers numerous marketing and financial advantages:

1. Higher Conversion Rates

Retargeted users are 2–3x more likely to convert since they’ve already shown intent.

2. Improved ROI

Retargeting focuses on warm leads rather than cold audiences, significantly lowering customer acquisition costs.

3. Increased Customer Lifetime Value (CLV)

Post-purchase retargeting nurtures loyalty and encourages repeat transactions.

4. Enhanced Personalization

Emails can dynamically display products viewed or left in the cart, improving engagement.

5. Strengthened Brand Recall

Frequent and relevant follow-ups keep your brand top-of-mind.

6. Better Segmentation Insights

Tracking data helps you understand user behavior patterns and optimize future campaigns.

7. Best Practices for Successful Email Retargeting

To ensure your retargeting campaigns deliver maximum ROI, follow these best practices:

1. Time Your Emails Right

Send the first retargeting email within 1–3 hours of user action, when interest is still high.

2. Personalize Deeply

Use first names, product recommendations, dynamic images, and behavioral triggers.

3. Use a Clear CTA

Every retargeting email should have one strong call to action — e.g., “Complete your order” or “See your saved items.”

4. Add Incentives

Limited-time offers, discounts, or free shipping can push users to complete the purchase.

5. Optimize Subject Lines

Your subject line determines whether the email gets opened. Keep it short, relevant, and curiosity-driven.
Example: “Your cart called — it’s missing you 🛒”

6. Limit Frequency

Avoid spamming users. A 2–3 email sequence over a week works best for most cart abandonment cases.

7. Test and Optimize

A/B test subject lines, timing, visuals, and CTA placements to refine performance.

8. Common Challenges and How to Overcome Them

Challenge Solution
Low Open Rates Personalize subject lines and test send times
Email Fatigue Segment users and limit frequency
Data Privacy Concerns Be transparent and comply with GDPR/CCPA
Deliverability Issues Maintain clean lists, authenticate domains (SPF/DKIM), and monitor spam complaints
Unsubscribes Offer easy preferences, such as pausing emails or reducing frequency

9. Measuring Email Retargeting Success

The following metrics help evaluate performance:

Metric What It Indicates
Open Rate How compelling your subject line is
Click-Through Rate (CTR) Engagement and relevance of email content
Conversion Rate The ultimate goal — how many users completed an action
Revenue per Email (RPE) Financial performance of each campaign
Bounce Rate Email list hygiene and deliverability
Unsubscribe Rate Content relevance and email frequency

Tracking these KPIs helps optimize your strategy for consistent performance improvements.

10. Real-World Example: Amazon’s Email Retargeting Mastery

Amazon is a global leader in email retargeting.
Their system:

  • Tracks user behavior at every step.

  • Sends immediate, personalized emails (e.g., “Still interested in [Product Name]?”).

  • Uses product images, ratings, and recommendations for cross-sells.

  • Keeps follow-ups subtle and valuable, not intrusive.

This constant personalization and value-driven follow-up are key reasons why Amazon maintains one of the highest e-commerce conversion rates in the world.

11. The Future of Email Retargeting

As technology and privacy laws evolve, so does email retargeting.
Emerging trends include:

  • AI-Driven Personalization: Predictive analytics to anticipate what users want next.

  • Omnichannel Integration: Combining email with SMS, push notifications, and ads for unified experiences.

  • First-Party Data Strategy: Relying on consent-based tracking due to cookie depreciation.

  • Interactive Emails: Incorporating quizzes, carousels, and live product updates inside emails.

  • Hyper-Segmentation: Targeting micro-audiences with pinpoint accuracy.

12. Conclusion

Email retargeting is not just a tactic — it’s a revenue recovery system that helps you maximize every lead. It bridges the gap between interest and conversion, nurturing users through personalized, timely, and relevant communication.

When done strategically — with behavioral data, automation, and empathy — email retargeting can deliver exceptional ROI, build customer loyalty, and boost your brand’s long-term growth.


Quick Summary

Aspect Details
Goal Re-engage users who didn’t convert
Key Triggers Cart abandonment, browse behavior, inactivity
Tools Klaviyo, HubSpot, ActiveCampaign, Mailchimp
Benefits Higher conversions, ROI, personalization
Challenges Deliverability, privacy compliance, fatigue
Future AI personalization, omnichannel automation

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