Do you remember any instance when you left a shop after checking and asking the price of a product, and then shopkeeper/salesman steps out of the shop and calls you stating a reduced price of the product and insisting to come back? Well it happened all the time at Palika Bazar in Delhi and it is called Retargeting or Remarketing.Similarly if you left your contact information at a shop after inquiring about the product, Chances are that you will get a call or email from the store checking if you are interested in the product.
On the Internet, whenever you visit a site or browse/search for a product your information is stored in your computer in the form of Cookie. This cookie can then be accessed by the visited site or Google and can be used by them to give you product recommendations via ad when you browse some other web page based on your past activity. The E-commerce site will be able to know your location, IP Address and much more. Once you leave the site and start browsing some other site then E-commerce site can show you other offers which they have in the ad window using Google Analytics and is called Retargeting/Remarketing. This cookie persists in your system unless you delete and the E-Commerce site can give product recommendations based on the browsing history ranging from last hour to last 1 month or more.
Once the user leaves the site, E-Commerce site can then also provide offers which is specialty designed for you and some of the offer which you see are not always seen by others. This leads to a higher conversion.
Sites also keep track of those who selected the product but then abandoned it and can target them accordingly as conversion ratio in those cases is high.
Now let’s discuss the case study for www.flipkart.com which is India’s premier E-commerce site. We expect it to have most advanced technology in India, it has raised $550 million of funds and major portion of it was raised in last 1 year.
a) Flipkart site was accessed and two products namely i5 laptop and Nexus 7 tablet were searched.
b) Within 15 minutes following recommendations were given by flipkart when browsing on youtube. Recommendation was not good as the laptop shown was not i5 and instead of tablet, Phones were recommended and no offer was shown.
c) After 1 hour following ad was displayed.
d)When youtube was again accessed after 8 hours following ad was displayed. And this time it was quite relevant.Laptop recommended was of i5 processor and tablet was recommended, and price was also mentioned with it.
e) After above three ads were displayed, tablet shown above was clicked and then a phone was searched. Following is the ad displayed next day. It displayed both the phone and Tablet options mostly in the price range of the product clicked earlier and LG G2 based on the previous week search. It did not show the laptop but might show it again if any offer is there.
Clearly every user move is watched but people don’t mind it as long as it helps in making decisions and is not misused.