Remarketing Math for Marketers

Ive been asked, "why remarket?" I say, "the math tells me to do so." Beyond the intuition - its cheaper to market to previously qualifed leads than to start cold - however, remarketing is most powerful if you have fairly decent control of your lead gen process and are comfortable with your base conversion metrics, especially lead -> opportunity -> sale.

For example, consider this baseline:
For a 60 day campaign, 100 leads are acquired for $100 ea (typical B2B), converting 10% to opportunity, which ultimately convert to 2 deals. If ASP is $25K, then the contribution margin for this campaign is $40K. CPL is $100 and CPO is $1K. A winner.

By remarketing to this same list, and assuming the same 10% opportunity conversion (which is fairly easy to do simply by offering a different CTA), the 9 additional opportunities deliver a whopping 47% CPO reduction to the campaign (CPO from $1K to $526)! Ive assumed the cost to email and revamp CTA are negligible, which they are! Will these 9 convert to additional deals? If so, watch your campaign contribution margin go through the roof with each successive remarketing event.

And without going into the heavy financial analysis, assume that remarketing also delivers more OPPORTUNITIES more quickly, so assuming a reasonable discount rate, the campaign ROI improvement becomes even more amazing.

Remarketing doesnt require heavy math or expensive technology. Like most effective things in marketing, it requires planning, testing, measuring, and improvement.

Speak with you soon. DC