We’re in the middle of 2020, and Facebook Custom Audiences is still far underused in comparison to its potential returns.
If done right, Facebook Custom Audiences can help us boost Customer Lifetime Value.
And with rising costs and competition in Facebook Advertising, this is something that should be higher in your priority list.
Here’s why.
We, advertisers, tend to focus on the “Awareness > Consideration > Conversion” funnel (or derivatives of the same concept).
This model is great, but has 2 flaws:
? Flaw #1 – The model doesn’t consider post-conversion opportunities (aka repeat sales, retention, churn prevention & recovery, etc).
That’s money left on the table. Mainly because retargeting existing buyers consistently OUTPERFORMS any other form of advertising.
? Flaw #2 – By not maxing out LTV, our target CPA is lower, forcing us to ditch non-profitable acquisition campaigns that could bring additional customers if we had a higher CPA.
As a side effect, in the long term, we could get outrun by competitors who can afford a higher CPA and spend more $$ per customer.
A better version of the funnel would be something like this:
Covering the right side of the funnel with email marketing
For most companies, email marketing is the go-to channel for the right side of the funnel. Email performs well for a reason: It talks to people engaged enough to care opting-in.
But the reach of the email marketing, when measured as a percentage of reads/total customers, well… it sucks.
Facebook Custom Audiences to the rescue
Facebook Custom Audiences help brands reach significantly more customers than email. At B2C companies, the reach of Custom Audiences can be as high as 75%.
There’s a BIG DIFFERENCE between both channels: Email is free, and Facebook Ads are not.
On email, we send the same newsletter to all customers and call it a day. On Fb Ads, this is prohibitively expensive.
To run successful campaigns on Facebook to generate repeat sales, you have to display an optimized message for each customer segment.
In fact, success boils down to 2 factors:
1️⃣ Properly segmented Custom Audience Lists
2️⃣ Great Ad Creatives
It’s basic common sense:
? Got a sports ecomm and have customers buying golf clubs? Show’em golf stuff!
? A beauty ecomm with customers buying products for dry skin? Show them dry skin tips!
You get the gist…
Give me some real data
For the last year, here at Relevanzz we have been working with big and small brands, experimenting and learning about the potential of Facebook as a channel to increase awareness of promotions, drive repeat sales, and improve overall LTV.
Here are some highlights of the results:
Client: Maquillalia, a large EU based beauty e-retailer:
? +97% in conversions from first to a second purchase
? +24% in revenue from promotional activities
Client: Smilerepublic – Spanish DTC, the local leader in teeth whitening products:
? +388% performance in A/B tests FB Ads vs Email marketing
Client: One of the 5 world’s largest cruise liners (cannot fully disclose)
? +228% revenue from ancillaries, preboarding the ship
? +64% in last-minute booking deals
(Pre-COVID data)
Get started with Facebook Custom Audiences
We hope this thread inspires you to explore Custom Audiences as an area of growth. If you struggle with creating segmented custom audiences for your e-commerce, we are Relevanzz, a platform that does just that.
The product is currently in public beta. We are now inviting adventurous Facebook Ads experts, cutting-edge agencies, growth hackers & e-commerce owners to try it out. It’s 100% free while in beta and you can sign-up here:
And if you want to talk more about FB Custom Audiences, get a demo or discuss partnerships, just drop me an email to [email protected]