One of the biggest mistakes ecommerce business owners make with Google Ads is spending too much of their advertising budget trying to acquire new customers while overlooking the customers they’ve already worked so hard to earn.
Think about it. Someone has already visited your website, purchased a product, received their order, and hopefully had a great experience. You’ve already invested money to acquire that customer. So why not use Google Ads to encourage them to come back and purchase again?
Re-engaging previous customers can be one of the most cost-effective ways to grow an ecommerce business. After all, these customers already know your brand, have experience with your products, and may be more likely to purchase again than someone who has never heard of your business.
The key is knowing how to reach these customers without spending more than necessary.
Let’s look at five strategies you can use with Google Ads to bring previous customers back while protecting your advertising profitability.
- Use Google Customer Match to Reach Previous Customers
One of the first strategies I recommend is taking advantage of Google’s Customer Match feature.
Customer Match allows eligible advertisers to upload customer information, such as email addresses and phone numbers, into Google Ads. Google can then match that information with eligible Google users, allowing you to reach those customers through supported advertising campaigns.
Essentially, you’re taking a list of people who have already purchased from your business and using that information to advertise to them again.
This is particularly valuable for ecommerce businesses because you aren’t starting from scratch. You’re marketing to people who are already familiar with your products and brand.
However, there’s an important distinction: You don’t want to treat every previous customer the same way.
For example, imagine you sell skincare products. Someone who purchased a moisturizer 60 days ago might be a great candidate for a replenishment campaign. However, someone who purchased that same moisturizer yesterday probably doesn’t need to see an advertisement encouraging them to buy it again.
The goal is to use your customer data to make your advertising more relevant.
You can also use Customer Match audiences to identify opportunities for cross-selling and introducing previous customers to new products.
Just remember to follow Google’s Customer Match policies and applicable privacy and consent requirements when collecting and uploading customer information.
- Segment Previous Customers Based on Purchasing Behavior
Another important strategy is to segment your previous customers into smaller audiences.
Rather than uploading one giant customer list and advertising to everyone, break your customers into groups based on their purchasing history and behavior.
For example, you might create separate audiences for:
- Customers who purchased within the last 30 days.
- Customers who purchased between 30 and 90 days ago.
- Customers who haven’t purchased in six months.
- Customers who have purchased multiple times.
- Customers who purchased a particular product or product category.
Why is this important?
Because your advertising message should reflect where someone is in their customer journey.
A customer who recently purchased from you might be interested in a complementary product or a new product release. Someone who hasn’t purchased in six months might need a compelling reason to return.
Let’s go back to our skincare example.
A customer who recently purchased a moisturizer might be interested in a complementary cleanser or serum. Someone who purchased six months ago might respond better to an advertisement highlighting a new product line or a returning-customer promotion.
The more relevant your advertising is, the less money you’ll waste showing ads to people who have little reason to purchase.
In other words, don’t just advertise to your customers. Advertise to them based on what you know about them.
- Use Remarketing to Promote Complementary Products
Google remarketing provides another excellent opportunity to re-engage previous customers.
Remarketing allows you to build audiences based on people who have previously visited your website or interacted with your business, subject to Google’s eligibility and privacy requirements.
You can then reach those audiences through supported advertising channels, including the Google Display Network and YouTube.
For ecommerce businesses, this can be particularly effective when promoting complementary products.
For example, let’s say someone purchased a coffee maker from your website three months ago.
Rather than showing them another advertisement for the same coffee maker, why not introduce them to products they might also need?
You could advertise coffee beans, reusable filters, cleaning supplies, or other coffee accessories.
The objective isn’t necessarily to sell them the same thing again. It’s to increase the lifetime value of that customer by introducing them to additional products that complement their original purchase.
This is an important distinction.
Instead of continually paying to acquire new customers, you’re using advertising to generate additional revenue from people who already know and trust your business.
And that’s a smart way to grow an ecommerce business.
- Control Your Bids, Exclusions, and Advertising Frequency
Now let’s address the part of this strategy that can make the biggest difference to your bottom line: avoiding overpaying for previous customers.
One mistake advertisers make is assuming that because someone has purchased from them before, they’re automatically worth paying more to reach.
That’s not necessarily true.
Previous customers may be more likely to purchase than completely new prospects, but that doesn’t mean you should bid without limits.
I recommend establishing a separate campaign or audience strategy for previous customers whenever it makes sense for your account structure. This gives you greater visibility into how much you’re spending and how much revenue those campaigns generate.
Monitor important performance metrics, including:
- Cost per acquisition (CPA).
- Return on ad spend (ROAS).
- Conversion value.
- Average order value.
- Profit per order.
Most importantly, understand your profit margins.
For example, let’s say your average order value is $75 and your gross profit margin is 40%. That gives you $30 in gross profit before advertising and other applicable expenses.
If you spend $25 to generate that sale, your campaign might look attractive when you’re only looking at revenue. However, you’ve left yourself very little room for other expenses and actual profit.
Remember, the goal isn’t simply to generate another purchase. It’s to generate another profitable purchase.
You should also take advantage of audience exclusions.
For example, if someone purchases a 30-day supply of a supplement, you might want to wait several weeks before advertising that same product to them again.
Depending on your product and typical buying cycle, you could exclude customers who purchased within the last seven or 14 days.
This helps prevent unnecessary advertising impressions and keeps your budget focused on people who are more likely to take action.
Finally, pay attention to advertising frequency. If your remarketing audience is relatively small, you can quickly show the same advertisement to the same people repeatedly.
At some point, you’re no longer re-engaging customers. You’re just reminding them that you exist. And they probably already know that!
- Give Previous Customers a Reason to Purchase Again
The final strategy is perhaps the most important: Give previous customers a compelling reason to come back.
Simply showing someone the same advertisement they saw when they originally purchased from you isn’t necessarily going to generate another sale.
Instead, think about what would motivate that customer to return.
Here are several opportunities worth considering:
Promote new products. Previous customers who already trust your brand may be interested in seeing your latest product releases.
Introduce complementary products. Recommend products that work well with something they’ve already purchased.
Use replenishment reminders. If you sell products that customers regularly consume or replace, remind them when they might be ready to purchase again.
Offer returning-customer promotions. An exclusive promotion can encourage customers who haven’t purchased recently to return.
Create product bundles. Combine related products into a bundle to increase average order value while providing additional value to the customer.
However, be careful about automatically offering discounts to everyone.
If someone is already willing to purchase from you at full price, there’s no reason to give away your profit margin unnecessarily.
This is another way ecommerce businesses end up overpaying for customers.
Instead, reserve special incentives for customers who actually need an additional reason to purchase.
Final Thoughts: Make Each Click Count
Re-engaging previous customers through Google Ads can be an excellent opportunity to increase revenue, improve customer lifetime value, and grow your ecommerce business more profitably.
If you want to get the most out of your remarketing campaigns without overspending, remember these five strategies:
- Use Google Customer Match to reach customers who have already purchased from your business.
- Segment your customer lists based on purchasing history and behavior.
- Use remarketing campaigns to promote complementary products and encourage repeat purchases.
- Manage bids, exclusions, and advertising frequency to avoid wasting advertising dollars.
- Give customers a reason to return without automatically discounting your products.
Ultimately, one of the best ways to grow an ecommerce business is to increase the lifetime value of the customers you already have.
Acquiring a new customer is important, but getting that customer to purchase again can be an excellent opportunity to improve your overall advertising profitability.
Remember, successful Google Ads management isn’t about spending the most money or generating the most clicks. It’s about generating profitable sales and making each click count!
Frequently Asked Questions About Using Google Ads to Re-Engage Previous Customers
- How can Google Ads help re-engage previous customers?
Google Ads can help re-engage previous customers through Customer Match and remarketing campaigns. Customer Match allows eligible advertisers to upload customer information, such as email addresses, so Google can match those customers with eligible users. Remarketing allows businesses to reach people who have previously visited their website or interacted with their business. Both strategies can help encourage repeat purchases, promote complementary products, and increase customer lifetime value.
- What is Google Customer Match, and how does it work?
Google Customer Match is a Google Ads feature that allows advertisers to use their own customer data, including email addresses and phone numbers, to create advertising audiences. Google matches the uploaded information with eligible Google accounts, allowing businesses to reach those customers through supported campaign types. It’s particularly useful for ecommerce businesses looking to reconnect with previous purchasers and encourage repeat sales.
- How much should I spend on Google Ads remarketing campaigns?
Your remarketing budget should depend on your audience size, average order value, profit margins, and expected customer lifetime value. Rather than allocating a large budget immediately, start with a modest daily budget and monitor performance. Pay close attention to cost per acquisition, conversion value, and return on ad spend (ROAS). The goal is to generate profitable repeat purchases, not simply spend your advertising budget reaching previous customers.
- How can I prevent Google Ads from showing advertisements to customers who just purchased?
You can use audience exclusions to prevent recently converted customers from seeing certain advertisements. For example, if someone purchases a product that typically lasts 30 days, you might exclude that customer from the same product’s remarketing campaign for the first 14 days. This helps reduce unnecessary advertising impressions and keeps your budget focused on customers who may be ready to purchase again.
- What is the difference between Google Ads remarketing and Customer Match?
Google Ads remarketing generally uses website visitor or interaction data to build audiences of people who have previously engaged with your business. Customer Match uses customer information you already possess, such as email addresses and phone numbers, to match customers with eligible Google users. Both approaches can help re-engage previous customers, but Customer Match relies on your existing customer data, while website-based remarketing can reach a broader group of previous visitors.
- What types of advertisements work best for bringing previous customers back?
The most effective advertisements give previous customers a relevant reason to purchase again. Examples include new product announcements, complementary product recommendations, replenishment reminders, seasonal promotions, and exclusive returning-customer offers. For ecommerce businesses, promoting products related to a customer’s previous purchase can be particularly effective. The key is to tailor your advertising message to the customer’s purchasing history rather than showing everyone the same advertisement.
- How do I measure the profitability of Google Ads campaigns targeting previous customers?
To measure profitability, monitor metrics such as cost per acquisition (CPA), return on ad spend (ROAS), average order value, conversion value, and profit margins. You should also consider customer lifetime value because a repeat purchase may contribute to additional future revenue. Remember that generating revenue doesn’t automatically mean generating profit. Successful remarketing campaigns should produce incremental sales at an advertising cost that makes financial sense for your business.
Need Help with Google Ads? If you’re ready to take your online store’s performance to the next level with Google Shopping Ads but need a helping hand, consider reaching out. I’m Andy Splichal, author of Make Each Click Count and host of the Make Each Click Count podcast. Whether it’s about creating high-performing Shopping Ads or mastering your overall Google Ads strategy, I’m here to help. Let’s make those clicks count!
ABOUT THE AUTHOR
Andy Splichal is the founder and managing partner of True Online Presence, author of the Make Each Click Count book series, host of the Make Each Click Count podcast, founder of Make Each Click Count University and certified online marketing strategist with twenty plus years of experience helping companies increase their online presence and profitable revenues.
He was named to Best of Los Angeles Awards’ Most Fascinating 100 List in both 2020 and 2021. To find more information on Andy Splichal, visit trueonlinepresence.com or read The Full Story on his website or his blog, blog.trueonlinepresence.com.