8 Marketing Automation Trends You Need to know

marketing automation trends via Convertedin

The world is making major shifts in the areas of retail, marketing, and digital transformation and information.

E-commerce businesses are constantly looking for ways to engage their customers, appeal to them, while also trying to save time and money, which brings to the forefront the idea of marketing automation.

In the past few years, artificial intelligence (AI) has been gaining headway and making strides in sales and marketing.

A growing convenience, marketing automation has been one of those AI-powered opportunities that businesses in general and e-commerce brands specifically have been making major use of.

Businesses across the globe are using automation as a means of coping with the fast-paced growth and changing consumer trends and behavior.

That’s why, in this article, we’re going to focus on the marketing automation trends that are shaping 2021 and the years to come.

What is marketing automation?

Marketing automation is using software to automate your marketing activities. This can include automating things like your social media posts and scheduling, email marketing, ads, analytics, among other things.

Companies use marketing automation for various reasons. The top three are:

  • Saving time
  • Efficiency
  • Being able to offer a personalized experience

It’s important to note though that marketing automation isn’t just about tools you use, but rather it’s about creating an opportunity to build a stronger relationship with your customers.

“With good marketing automation, it’s easier to nurture leads (the seedlings) well enough to produce paying customers (a lush, full-grown plant),” explains HubSpot.

It’s worth mentioning that when we’re talking about marketing automation, we’re also talking about the broader e-commerce automation.

Types of marketing automation

There are several types of automation opportunities that fall under the bigger marketing automation umbrella.

These are:

  • Social media automation
  • E-mail automation
  • Ads automation
  • CRM automation
  • Landing page automation
  • Marketing analytics automation
  • Sales automation
  • Mobile marketing automation
  • Let’s tackle each of these in brief.

Social media automation

Possibly one of the most widely-used forms of automation is social media automation. These tools help marketers create calendars and schedule posts across various social media platforms.

social media automation

Social media automation tools include: Sprout Social, HubSpot, Hootsuite, Buffer, among others.

E-mail automation

To create e-mail campaigns for your customers or for lead generation purposes, you’ll need an email marketing tool.

These tools allow you to measure and understand various aspects in your email campaign including: open rate, click-through-rate (CTR), email opt-in rate, among other metrics.

Email automation tools help you create personalized emails with fun images and without having to struggle with any coding.

Discover the 47 e-commerce vocabulary including e-mail marketing-related terms via Convertedin

Some email marketing automation tools include: MailChimp, Zapier, ActiveCampaign, Get Response, HubSpot, among others.

Marketing analytics automation

Not only can you automate your marketing process but also the process of generating marketing-related analytics.

Marketing analytics involve data and reporting, allowing marketers to view statistics and data easily without having to sift through tons of excel sheets or various data end-points.

Automating your marketing analytics can help you track various aspects of your overall marketing strategy. This may include your email campaigns, social media, blog posts, ads, among options.

Marketing analytics automation tools include: SharpSpring.

Sales automation

Did you know that sales people rely on automation tools too?

According to data by McKinsey, over 30% of sales-related activities can be automated.

“Sales automation holds the potential to reduce the cost of sales by freeing up time spent on administration and reporting and to unlock additional revenue by automating outreach to customers in the sales funnel,” says McKinsey in its Sales Automation report.

It adds that many sales executives and decision-makers aren’t taking advantage of sales automation opportunities.

In the same vein, Hinge Research reports that companies that use a high-level of automation in their sales processes enjoy 16% more leads than those who use low-level automation or don’t use automation at all.

Data from HubSpot’s Sales Enablement Report shows that 61% of businesses who used sales automation tools were able to exceed their revenue targets in 2020.

Ads automation

Ad campaign automation or ads automation tools help you automate your ad-creation process, saving you time, and helping you create more ads, fast.

Convertedin is an ads automation software that helps e-commerce businesses segment their customers and users and create ads on autopilot to attract and retain customers.

Find out how you can Create a Customer Segmentation Strategy and Boost Your Sales

And as a customer ads platform, Convertedin helps online businesses divide their customers into segments so they can target them with better and more focused ads.

Sample showing Convertedin's customer segmentation and ads automation

CRM automation

The automation type gives you the ability to automate your client relationship management (CRM) process.

A CRM provides customer data via a dashboard allowing marketing executives and teams to access the information, including emails, phone numbers, locations, and other data, and use it in their campaigns.

CRM programs enable marketers to see where their leads are in the sales funnel, helping them convert those potential customers.

Using a CRM automation platform helps teams communicate with customers and track their interactions.

Landing page automation

As a marketer, you’ve probably had to create a landing page at some point. While the process can be difficult with multiple people or departments taking part in creating your landing page, there are tools that can help you create such a page in minutes. The simple kind at least.

Landing pages help businesses attract customers and increase their conversion rates.

Automation software for landing pages allows marketers to create landing pages using pre-made templates and layouts with customizable call-to-actions, without the hassle of coding.

Mobile marketing automation

With more people relying on their mobile phones every day and with many using it as a laptop or desktop alternative, mobile marketing automation tools offer a good opportunity for e-commerce businesses.

Because business owners, marketing and sales executives, along with many working people use their mobile phones to conclude business.

“Mobile marketing automation takes the capabilities of traditional marketing automation and applies them to the mobile era,” explains Salesforce.

Features for mobile marketing automation include “personalized, real-time messaging, analytics and A/B testing of content, [and] integration with apps and other data sources coming from the user’s mobile device,” according to Salesforce.

How marketing automation helps businesses

To understand how this type of automation works and how it helps business owners and marketing and operations managers, let’s look at some statistics.

A 2018 Forrester report expects global spending on marketing automation tools to exceed $25 billion by 2023, registering an annual growth rate of 14%.

The Forrester report titled Marketing Automation Technology Forecast 2017 to 2023 covered 6 marketing automation categories, namely: cross-channel campaign management software, content marketing platforms, lead-to-revenue management automation platforms, marketing resource management software, real-time interaction management solutions, and through-channel marketing automation platforms.

  • Email marketing automation is considered one of the top 3 tactics email marketers use to measure and improve the performance of their email campaigns. In addition, roughly 20% of marketers are automating their email campaigns. (HubSpot State of Marketing Survey 2020)
  • Marketing agencies are increasingly using and investing in marketing automation software including email and social media automation software. (MarketingProfs, 2019).
  • Around 60% of businesses were found to have used some form of automation. (HubSpot State of Marketing Survey 2020)
  • Marketing automation can increase sales productivity by 14.5% and reduce marketing overhead fees by 12.2%. (Nucleus Research)
  • Around 63% of survey respondents were able to ‘set measurable objectives’ for their campaigns using marketing automation. (Gleanster)
  • Roughly 92% of B2B marketers now have an [Account-Based Marketing (ABM)] program, and 68% of them use automation. (Salesforce, 2020)

Marketing automation trends

So what are the marketing automation trends that e-commerce businesses and marketers should be aware of for 2021 and beyond?

1. Personalization is the future

You’ve probably heard this before: customers love personalization.

So it’s no surprise that personalization is among the top marketing automation trends for years to come.

Using customer data, brands can personalize their interactions with customers, their emails, even their ads.

For example, if you’re using Convertedin to automate your ads creation process, you’ll be able to personalize your ads so that your segmented customers get ads for products that are relevant to their buying habits.

Similarly, if you’re using email automation software, you can address the customer by name and send them offers, discounts, and content based on their preferences.

“Organizations spend millions of marketing dollars every year on acquiring customer data from first, second, and third-party sources with a single aim of achieving personalization,” notes Toolbox.com.

Marketers believe that personalization is the future of marketing campaigns, it adds.

Personalization in 2021 shouldn’t rely on cookies and third-party data. It shouldn’t be just “merchandising or guesswork,” notes Richard Jones, CMO at Cheetah Digital in a post via Total Retail.

“This new generation of personalization will unlock the power of first- and zero-party data through machine learning. It will help retailers provide a value exchange in the moment with consumers right on their mobile app, website or in-store,” he adds.

2. Better alignment between sales and marketing

To enjoy strong revenues, your sales and marketing teams need to be on the same page. By using marketing automation tools, you can create this alignment and improve the flow between your two departments.

How? Using automation tools, sales and marketing teams can “trigger sales flows based on marketing efforts and the steps a lead takes. With automation, both teams will be able to attribute what marketing efforts led to sales accurately,” explains ToolBox.com. 

3. Email is still big

As a form of marketing automation, e-mail marketing will continue to help e-commerce businesses drive more engagement and sales.

An early 2020 joint study by Cheetah Digital and E-consultancy about consumer behavior found that 3 out of 4 people in the US made a purchase from an email they received. 

Moreover, email marketing helped increase sales by 180% compared to display ads, the survey showed.

email icon

With billions of emails sent daily, there’s a massive opportunity for email marketing.

Data by Statista shows that in 2020, around 293.6 billion emails were sent and received each day. This number is expected to surge to 347.3 billion emails per day by 2022 and to 376.4 billion by 2025.

These figures put email marketing among the top marketing automation trends on this list.

4. Customer experience to grow on AI-powered conversational marketing

Conversational marketing has been a marketing trend for some time. Primarily in the content marketing field.

But that’s not the only are where it’s used. Especially where AI is involved.

In the coming years, AI will play a major role in various marketing automation trends.

One of those trends is the rise in voice search among customers.

Around “91% of organizations plan to deploy voice and other AI-powered technologies such as chatbots to provide an effortless experience to consumers by 2022,” notes Toolbox.com, citing data by Gartner.

This brings to the forefront the fact that chats, boosted by AI-powered conversational chatbots, are one of the many marketing automation opportunities brands are using to enhance customer experience and drive sales.

The way chatbots operate has improved significantly in recent years. In fact, it’s becoming harder for people to determine whether they’re talking to a chatbot or a real person.

Chatbots are now able to “gather customer data for future marketing efforts [and] help businesses reach their sales goals,” notes Chad Ruff, CTO at marketing automation platform Act in a post via Total Retail.

He adds that chatbots offer customers instant replies to their questions and are able “to send links to purchase or transfer the customer to a live associate if needed.”

That’s why, ranking among our marketing automation trends, is conversational marketing through AI-powered chatbots.

5. AI to help businesses save time, connect more

With AI-powered marketing automation tools businesses can save time and money. This will allow them to focus more on other parts of their marketing and sales funnels.

This, in turn, will result in higher demand for marketing and other automation tools.

“There is a desire for automation and the use of AI to save time and money across all generations and use cases, however Generation Z (those born between 1995 and 2009) is the most amenable to using these technologies to make their lives easier,” notes Gartner in a report.

By 2030, the largest customer base will be formed of Generation Z. This, Gartner expects, “will lead in the use of customer-directed automation technologies to obtain support and value from the organizations they choose to interact with.”

“Marketing automation not only provides important opportunities for interaction with the customer, but it can also save time. It’s no secret that time is a valuable resource, and that’s especially true when running a small business. Time saved on marketing means being able to capture new business and have more time to commit to other vital tasks.” – Chad Ruff, CTO at ACT.

6. Loyalty marketing gains traction

Customer loyalty programs have been around for years but they’re expected to gain heavier traction in 2021 and beyond.

This comes amid shifts in customer behavior and a growing need and opportunity for personalization, making these programs among our marketing automation trends and opportunities.

Attracting a new customer is 5 to 25 times more expensive than retaining a current customer. That’s why businesses in 2021 will focus on getting more revenue from their existing and loyal customers.

A happy customer is a loyal customer

Using loyalty apps, businesses can create loyalty programs, automate their operation, and then use them to grow their customer base and retain customers.

There are many industries where loyalty programs can support a business, allowing for personalization, customer loyalty, and higher revenues.

7. More marketing automation via mobile phones

Website traffic coming from mobile phones has been growing in the past few years. This means that mobile marketing and automation for it will continue to be a marketing automation trend for the foreseeable future.

Traffic via mobile accounts currently makes up “approximately half of web traffic worldwide,” according to data by Statista. In the first quarter of 2021, web traffic coming from mobile devices (excluding tablets) reached 54.8%.

The figure has been “consistently hovering around the 50% mark since the beginning of 2017,” Statista adds.

This means e-commerce brands have a bigger opportunity to reach their customers via mobile phones using push notifications or triggered pop-ups, SMS, and accelerated mobile pages (AMPs).

All of these options fall under marketing automation because they can be easily automated either internally or using third-party apps.

It’s also why marketers now need to focus on creating a mobile-first approach and strategy to engage their customers, retain them, and offer more mobile-based personalized experiences.

“By understanding user behavior, marketers can optimize their mobile strategies and deliver automated content,” notes Toolbox.com.

8. Understanding customers through AI and machine learning

AI and machine learning (ML) are two benefits in almost every CRM tool now. However, it’s important to note that they play a major role in helping businesses better understand their customers and their behaviors.

By using AI and ML, brands can see what kind of digital channels (social media, emails, mobile) their customers are using. They can then use those same channels to deliver content to these customers.

They’ll also help them understand the customer journey better and improve engagement and conversion between the brand and its customers.

Convertedin as your marketing automation tool

As an e-commerce business, part if your marketing strategy is to constantly create and run social media ads.

This is often a time-consuming and headache-inducing process, especially if your marketing team is just one person or a single media buyer. Or if you’re doing everything yourself.

But it doesn’t have to be this way. You can automate the ads creation process and save tons of time and money.

How? By using Convertedin.

Convertedin is a marketing automation tool that segments your customers and then creates ads for them – automatically.

For example, if you’re running Facebook ads for your audience, you can upload your custom audience to Convertedin and watch the platform create lookalike audiences for them.

If you have the Facebook Pixel installed in your website and a Facebook product catalog, Convertedin can create dynamic audiences and dynamic ads for your store in a matter of minutes.

For more information, visit Convertedin’s Ads Automation Guide.

Next steps

By now, it should be clear that marketing automation trends don’t just focus on marketing but encompass sales, customer experience, and more.

As the worlds of e-commerce and marketing grow and evolve, so will the many opportunities for AI and automation.

As a business owner, marketer, or marketing and operations manager, staying ahead of the e-commerce game and the market will help you stand out. But that’s not all you want.

You want to constantly build connections with customers and retain them so they buy more from you. This means personalization, email, loyalty, and relatable effective ads should be in your arsenal.

Stay on top of these marketing automation trends by personalizing the ad experience with Convertedin. Register for your 14-day free trial.

Facebook Ad Frequency: The Complete Guide for 2021

woman looking at Facebook for ad frequency

Have you ever wondered what a good Facebook ad frequency is and how to use it to drive more business?

Well, you’ve come to the right place.

Many of your customers are using Facebook, even if they’re not directly buying on the platform.

Facebook recently reported that it has an average 1.88 billion daily active users as of March 2021. The social media platform also enjoys 2.85 billion monthly active users, a 10% rise from 2020 figures.

This means there’s a massive opportunity for online businesses to showcase and sell their products to their customers on Facebook.

But among the questions businesses often wonder about are: what does the Facebook ad frequency mean? How does it work? And what is the Facebook frequency cap?

In this article, we’re going to help you understand what the Facebook frequency cap is, how it works, along with everything you need to know about it.

What is ad frequency?

An ad’s frequency is the number of times an ad appears to a potential customer on Google or a social media platform.

Many advertisers and digital media buyers say that showing the same ad or different versions of an ad to a customer multiple times encourages them to buy the product or service.

What is Facebook ad frequency?

Like other social media platforms, Facebook has a frequency for its ads.

The Facebook ad frequency is the number of times your ad appears to viewers and customers on the platform.

Although advertisers believe the higher the ad frequency, the better, customers are people who may have a different opinion.

How many times are you, as a person, willing to see the same ad in your Facebook feed?

May be that ad about a new tool is too repetitive you end up asking Facebook to hide it.

This brings us to the Facebook frequency cap and the relevance score.

What is the Facebook frequency cap?

The Facebook frequency cap is the maximum number of times an ad may appear to a potential viewer or customer.

In the past, advertisers could tweak the number of times their ad appears to users.

They could decide if their ad could appear 3 times a day or 5 times a week.

However, the situation has significantly changed. Facebook no longer allows advertisers to raise or lower their Facebook frequency cap.

The process is automated based on a number of factors including how many people engage with the ad and how many hide it.

What are ad relevance diagnostics?

On Facebook, users can interact with your ads. But sometimes, they aren’t happy with the ad they’re seeing so they ask Facebook to hide it or they report it.

If a user opts to hide or report an ad, they’ll be presented with a number of reasons why they no longer want to see the ad.

Facebook lists this under its ad relevance diagnostics.

Through its ad relevance diagnostics, Facebook looks to see “how relevant each ad is to a person before delivering an ad to that person.”

The more relevant the ads, the less they’ll cost and the better results they’ll get. “This leads to better experiences for people and businesses alike,” Facebook notes.

Facebook explains that its “ad relevance diagnostics [will] help you diagnose underperforming ads across 3 dimensions of relevance: quality, engagement, and conversion.”

Facebook recommends you review these diagnostics together rather than separately, adding that you’ll get more insights that way.

“If your ads aren’t meeting your advertising objectives, you can use ad relevance diagnostics to understand whether adjustments to your creative assets, post-click experience or audience targeting could improve performance,” Facebook explains.

The social platform’s ad relevance diagnostics look at 3 elements and compares ads targeting the same audience. These are:

  • Quality ranking, which looks at the quality of your ad compared to others.
  • Engagement rate ranking, which forecasts your ad’s “expected engagement rate.”
  • Conversion rate ranking, which looks at your ad’s expected conversion rate compared to ads targeting your same audience.

Remember: The ad relevance diagnostics are estimates. So, it’s best to look at them and use them as a guide.

“The [diagnostics] can be very useful in helping you improve the overall quality of your ads for the audiences you’re serving them to,” notes Social Media Examiner.

What is quality ranking?

We’ve mentioned that Facebook allows its users to hide or report an ad. This hiding and reporting helps the social platform rank the quality of its ads.

This is known as Facebook ad quality ranking or simply, as quality ranking.

“Quality ranking explains how your ad’s perceived quality compared to ads competing for the same audience,” Facebook explains.

If a Facebook user sees an ad more times than they would like, they can tell Facebook to stop showing them this ad.

Options when users get when they want to report or hide an ad for Facebook ad frequency

Once the user – or your potential customer – clicks “Hide ad,” they’ll be asked to select a reason for why they don’t want to see that ad again.

Image showing options when users click 'hide ad' on Facebook for Facebook ad frequency.

Another option Facebook users get is to “Report ad.”

This usually comes in the form of an ad that violates a user’s beliefs or personal preferences. It could also be an ad that users find offensive.

Facebook uses the quality ranking to measure ad quality by looking at signals, including user feedback for those who choose to view, hide, or report ads.

Facebook also looks at “assessments of low-quality attributes in the ad, such as withholding information, sensationalized language and engagement bait.”

Both “Hide ad” and “Report ad” are part of Facebook’s way to measure your ad’s performance and your relevance score.

What is the Facebook relevance score?

Facebook uses the relevance score to see how companies’ ads are performing across its platform and to prioritize which ads appear to the user first.

If your ads get reported or get negative feedback or many “hide ad” requests, then your relevance score will plummet.

Image showing options when users click 'report ad' on Facebook due to Facebook ad frequency.

If users engage with your ads, your relevance score will increase.

 The maximum relevance score is 10. If you get a 10 score on your ad, Facebook will show your ad to more than other ads targeting your same audience.

But 10 is a near-impossible target. Your ad may have a score of 8 or 9 when your first launch it because not many people have seen it.

But as your ad appears to more people, its relevance score will gradually go down. And that’s normal.

Facebook Ad Frequency vs Relevance Score

The more your Facebook ad frequency increases, the lower your relevance score will be.

To see how well your ads are performing, monitor their engagements along with your relevance score. Once your score drops significantly, you can stop the campaign because your ad will be seen by fewer people.

“If you create a website clicks or impressions campaign, you can watch your ad’s performance closely and manually stop the campaign if you notice your frequency going overboard and your relevancy score going down. For better results, you can adjust your targeting or creative, and relaunch the campaign,” suggests Social Media Examiner.

What is reach and frequency buying?

An option that Facebook gives ‘some’ advertisers is its ‘reach and frequency buying’ ad type.

“Reach and frequency buying allows you to book campaigns in advance and predict how those campaigns will perform before they run,” the platform explains.

However, reach and frequency buying isn’t open to everyone. Facebook only allows high-spending advertisers to use this option.

Facebook explains that its reach and frequency buying option is for advertisers who want to:

  • Reach an audience of over 200,000 people
  • Target an entire country, not just a local area
  • Have predictable reach for their ads
  • Control the number of times people get to see their ads
  • Plan and book campaigns in advance

Although reach and frequency buying provide a “predictable delivery of reach and impressions…it’s not a 100% guarantee of either,” Facebook notes.

Advertisers looking to use reach and frequency buying will have to contact Facebook first.

The ad frequency debate

Some say having a high frequency rate reminds your audience and gets them to buy. But sometimes, the audience grows sick and tired of your ads that they click the ‘hide ad’ button. This means it’s too much for them.

Be careful with the Facebook ad frequency and watch your Facebook frequency cap

In addition, as your ad’s frequency increases so does your cost per acquisition (CPA).

Why? “Because if users are continually seeing ads and not taking action, then they’re either not the right audience for those ads in the first place, and/or they’re being turned off by the number of times they’re seeing the same ad. If you’ve been shown the same advert 15x or more, you’re likely to get pretty frustrated with that ad, and consequently, the brand serving it to you,” explains Social Media Today.

To learn more about CPA and other marketing and e-commerce terminology, visit our list of 46 E-commerce Vocabulary, Metrics and Biz Terms You Need to Know.

 What is a good Facebook ad frequency?

You now have a good idea about Facebook ad frequency and the different elements that affect Facebook ads.

But often businesses will ask “What is a good Facebook ad frequency?”

Unfortunately, with everything in marketing, there isn’t a one-size-fits-all answer. There’s no ideal frequency for Facebook ads.

That said, when you run ads, you’ll be able to gauge what translates as an ideal frequency for your business.

Remember: Facebook ad frequency is an average. It’s not an exact number. This means that some users in your audience may have seen your ad more times than others.

Facebook reports the overall average.

While there is no ‘ideal’ Facebook ad frequency and you can’t tweak your Facebook frequency cap, there may be a range worth experimenting with.

According to Social Media Today, having your frequency “between 1.8 – 4 for optimum performance when putting your plans together” is a good target.

Getting started with Facebook ads

Now that you know about Facebook ad frequency and the Facebook frequency cap, it’s time to make sure you know what types of audiences you’re targeting and how.

As an e-commerce store, you need to do 2 things:

1. Add the Facebook Pixel to your website

If you’re selling directly from your website, that is your ads direct customers to your website, then you need the Facebook Pixel.

The Pixel is a type of code that allows Facebook to track users clicking your ads, going to your website, and what they are doing there.

2. Create a Facebook Product Catalog

The next step is to upload your products to Facebook. The platform allows you to create a Facebook Product Catalog.

Types of Facebook audiences

Last but not least, it’s important to know what types of audiences you can target on Facebook.

There are 3 main Facebook audiences you need to be aware of:

1. Custom audience

Facebook custom audiences allow you to find your “existing audiences among people who are on Facebook,” the social platform explains.

How do you find these people? By uploading data such as your customer lists website and/or mobile app traffic to the platform, which creates those custom audiences.

Remember: A Facebook custom audience is an audience you know and who are familiar with your brand.

2. Lookalike audience

Once you have a custom audience, you can use them to create a lookalike audience.

A lookalike audience is an audience that is similar to your current audience.

They may or may not be familiar with your brand but this audience shares some common ground with people who already buy from you.

This means they have bigger buying potential and are more likely to become your customers.

3. Dynamic audience

The dynamic audience is limited to businesses that use a Facebook product catalog.

You see, some small online stores don’t have a catalog on Facebook and market merely through images or redirect to their website without a product catalog.

The dynamic audience are those people who have engaged with the products within your Facebook product catalog. Whether they have clicked a product, added it to their cart, or purchased it previously, these people become part of your dynamic audience.

Marketing automation for Facebook

Creating and managing ads on Facebook is both easy and hard.

As you can see, there are many variables that require your attention, most of them are focused around your audience.

But building and segmenting your audience can be a tiring process. Not to mention having to create ad sets, experiment, and keep tabs on the performance of your ads.

If you’re a large business with many customer segments, then you’ll need a segmentation strategy to guide yours ad creation.

So how can you work out all the deets and details of creating well-segmented and well-performing ads? The answer: Using marketing automation tools.

Marketing automation is but one form of automation for e-commerce businesses. It can save you time, money, and lots of experimentation time.

Convertedin is one such marketing automation tool, you can use with Facebook and other social media platforms.  

With Convertedin, you can upload your customer data and the platform will automatically divide them into segments and create lookalike audiences for them.

In addition, you can easily generate images for your products directly through Convertedin.

Next steps

Now it’s time to get those ads before your customers.

Remember: Too much is never a good thing. But since Facebook no longer allows advertisers to tweak their frequency cap, you’ll have to see what works for you.

You can explore all the benefits Convertedin has to offer with our 14-day free trial (and we don’t ask you for credit card info).

Grow your sales with segmented customers and automate your ads using Convertedin.

Why does every e-commerce store need a customer ads platform to grow?

As an online store, or even a physical store with an online version, that’s looking to grow, you have tons of data about your customers.

You have information about their buying habits and what they like to shop when they come to your store.

But do you know how to use and analyze all of this data to create well-targeted ads, drive your conversion rate, and increase sales?

To achieve this three-part equation, you need a customer ads platform.

What is a customer ads platform?

A customer ads platform is software that allows you to upload all your data from different sources all in one place.

Note: there is a form at the end of the article to request a demo call

Convertedin team

Your data can come from an excel sheet, a loyalty program, mobile app, POS, website, or all of those (and more).

Here’s a 3-step process of how a customer data platform works.

Step 1: Upload and Unify

Once you upload all your data to the customer ads platform, you’ll be able to see a 360-degree view of your customers.

customer-ads-platform-unifying-customers-via-convertedin

Step 2: Analyze and Segment

The platform will unify and analyze all this data and create automated segments for your customers.

Step 3: Automated Ads Creation

Once the data is uploaded and segmented, the platform will begin creating ads for your newly-segmented target audience.

This means you’ll be able to reach your customers will tailored ads and the products they like.

How the Convertedin Customer Ads Platform Works

Convertedin’s customer data platform offers you an unlimited number of customer or user segments.

With the data in place, the platform will divide your customers across 200 or more segments.

These segments can include:

–          Female buyers

–          Male buyers

–          Top-spending customers

–          Lowest-spending customers

–          Customers who shop weekly/monthly…etc

Customer segmentation
Customer segmentation

And so on.

In addition, Convertedin’s customer data and ads platform offers AI-generated segments such as:

–          Customers likely to make a purchase next week/month

–          Customers likely to churn

Once segmentation is complete, the platform will then help you create  automated ads for these segments. It will begin showing your products to customers across Google and social media.

Convertedin’s automated ads come with an extra benefit. They are personalized ads created for buyers at different stages of the customer journey.

Customer ads

Conclusion

With data, understanding your customers, showing them ads for products they are interested in, and helping them reach the products they need, is easy, simple, and headache-free.

With a customer ads platform, all you need to do is grab all your scattered customer data and upload it. Discover who your loyal customers are, who your top buyers, and which customers haven’t returned to your store in months or even years.

Want to experience the benefits of a customer ads platform?

Fill this form for a chance to experience the Convertedin customer ads platform.

E-commerce Automation: How to Save Time and Boost Revenues

e-commerce-automation-helps-online-businesses

Did you know that by 2021 (yes, this year!) there will be roughly 2.14 billion (yes, billion!) online buyers? That’s almost 27% of the world’s population. (Oberlo)

What this means is: E-commerce is growing – fast!

But managing an online store isn’t easy. And as more businesses move online, store owners and marketing managers will need to automate many processes so they can grow.

That’s why e-commerce automation is big these days and is continuously growing.

But what is e-commerce automation exactly? And how can you use it to scale your business and keep it growing?

That’s what this blog post is all about.

By the way, one of the e-commerce trends of 2021 is that businesses will be using AI for better and more personalized experiences. E-commerce automation is all about using AI-powered tools to support business growth.

What is e-commerce automation?

E-commerce automation is using technology to automate processes within an online business.

Here are a few forms of automation:

  • Business automation
  • Customer support automation
  • Marketing automation
  • Sales automation
  • Email automation

While these are the most commonly-used forms of automation, they’re definitely not the only types out there. But they’re the most widely-used among e-commerce businesses.

Through automation, online stores can reduce costs, save time for the business and employees, and deliver more customized experiences.

Using e-commerce automation means creating a series of actions and responses using configurations and triggers by your customers.

For example, if Fred signs up to your email newsletter, he’ll get a ‘Thank you’ message with a link to check out the latest blog post or to grab a first-timer discount.

This ‘thank you’ email is an automation. Every person who signs up gets the same email. Add some personalization by including their name in the email.

Another example is when customer Marie adds a product to her cart but doesn’t complete the purchase.

As a store owner, your online store is ‘programmed’ to send customers who abandon their cart an ‘automated’ email reminding them about it. Or you can tell them that those products are about to run out.

Marie triggered your abandoned cart email sequence to get her to come back to your store and complete her purchase.

E-commerce automation is about triggers. As a business owner, you need to define those triggers and create automations to spur your customer to take action.

The action can be completing a purchase, subscribing to a mailing list, clicking a link, following you on social media, among others.  

Once the automation is in place, you won’t need to intervene. The automation will reach out, connect with, and help your customers on your behalf. No more human intervention.

What can you automate?

There are a number of things you can automate as an e-commerce business.

We’ve mentioned them briefly but now it’s time to get into more detail.

1. Business automation

This is where a business uses automation to support their business processes. This is the broader form and can include marketing and sales automations.

By automating actions within the business, e-commerce stores can:

  • Regulate and better control their inventory
  • Discover and address their supply chain problems
  • Offer fintech solutions to help their customers pay easily
  • Manage and automate delivery
  • Manage and automate returns for retail businesses

Physical stores too can use automation to increase the use of contactless payments and reduce the number of people in a queue. This can help physical businesses cut on operating costs, which will help their bottom line.

Artificial intelligence (AI) “provides the flexibility retailers need to meet changing demands and deliver operational efficiencies. By infusing intelligent automation across operations, retailers will survive 2021 and set themselves up for long-term success. Put simply, when it comes to AI in the retail sector, fortune favors the brave,” notes test automation platform general manager Gareth Smith in an article.

2. Customer support automation

Did you know that you can automate some of your customer support processes?

This part of automation usually involves using a chatbot.

Chatbots have come a long way in the past few years and chatbot development is continuously growing.

By using a chatbot in your e-commerce store, you can save time and cost on customer support representatives and have them handle the tougher queries and problems that customers struggle with.

3. Marketing automation

This is where businesses use automation for marketing purposes, which usually involves creating automated ads across multiple platforms.

Email automation, which we will get to in a minute, is a sub-category of marketing automation.

Using marketing automation, businesses can target customers across multiple platforms with messages, email, social media, and in many cases text (SMS).

Discover How and When to Use Dynamic and Static Ads

“Messages are sent automatically, according to sets of instructions called workflows. Workflows may be defined by templates, custom-built from scratch, or modified mid-campaign to achieve better results,” explains Salesforce.

Marketing for e-commerce businesses is also known as e-commerce marketing automation.

An example of e-commerce marketing automation is what Convertedin does. Convertedin takes your Facebook custom audience and, using AI, segments your customers, creates lookalike audiences, and targets those segmented-audiences.

If you have the Facebook Pixel and Facebook product catalog, Convertedin will automatically create dynamic audiences and dynamic ads for you.

We’ve recently added more to options e-commerce businesses can get when using Convertedin, which are the dynamic and custom product sets and the dynamic product design. The latter is about automating the designs for your products.

As of the writing of this post, Convertedin offers ads automation for Facebook, Instagram, Snapchat, and Google.

By using e-commerce marketing automation, online businesses can reduce the time and effort needed to create effective ad campaigns and generate more revenues.

4. Sales automation

Automating sales is about streamlining the time-consuming tasks that prevent your sales team from focusing on what they do best: generating sales.

By using sales automation, online stores can save and free up time needed to do administrative (and data entry-related) tasks that sales people and managers have to do daily, weekly, or monthly.

Sales automation will help you increase productivity for your sales team, increase efficiency and accuracy, reduce response time, and increase customer satisfaction.

5. Email automation

Email automation is about automating your email marketing. Tools like GetResponse, MailChimp, and ActiveCampaign offer email automation to help you create automated sequences and drive your customers to take action.

Email automation works with the same triggers as any other form of automation.

Remember Fred, who signed up to your newsletter and got a ‘thank you’ email?

As a business using email automation, you’ll set a number of triggers to entice Fred to take action. For example, if Fred, doesn’t create an account within 2 days of getting the ‘thank you’ email, the automation sequence (created by you), will send another email to remind Fred to create an account.

If nothing happens still, the sequence will continue by sending Fred another email within 2 to 3 days to remind him of the benefits of creating an account on your platform. If Fred still doesn’t sign up within 14 days, your final email might tell him that without an account you can’t help them fulfill their goals.

However, if Fred signs up after the ‘thank you’ email, they’ll be directed to another email sequence like onboarding or upselling.

Discover 46 E-commerce Vocabulary, Metrics and Biz Terms to Help You Sell More

With email automation, all you have to do is write the content of the sequence once and the automation will send all the emails on your behalf.

If you haven’t noticed, all these forms of automation fall under the bigger umbrellas of e-commerce automation and e-commerce marketing automation.

Benefits of e-commerce automation

As you can see, e-commerce automation comes with a ton of benefits. Let’s expand on them briefly.

1. Saves time, offers efficiency

Automation helps you cut down on repetitive tasks such as data entry and data processing, which saves time and reduces operating costs.

By saving time, your team will be able to focus on what matters, whether it’s sales, marketing, connecting with customers, or anything else.

Plus, with email automation, you’ll write the sequence once and let it work its magic. While automating your ads creation process can help you reach your customers through efficient targeting.

“With e-commerce automation, you can schedule sales promotions to go live at the right time, automate new product releases with their announcements, remove discontinued products, adjust prices, apply discounts, track purchases and provide rewards, etc,” notes Neil Patel.

2. Reduces workload, helps employees

Depending on the size of your e-commerce store or business, e-commerce automation can help you reduce your employees’ workload. Nor mundane tasks, which means more time to work happily and efficiently.

happier employees with e-commerce automation

Business automation will make them happier and raise their efficiency and satisfaction.

Imagine telling your team “you no longer need to spend an hour doing data entry work!”

The number “Phews!” you’ll get along with excitement will be better directed at more pressing requirements.

This helps you overall as a business.

3. Easier onboarding for suppliers and third parties

Your employees aren’t the only ones benefiting from automation. Your suppliers and other third parties can also benefit through quicker onboarding processes and e-commerce automations.

“Vendors will appreciate the system moving quickly and seamlessly without relying on human intervention throughout the process. Since the vendors and suppliers are in charge of their orders and requests, nothing gets lost in translation,” explains Neil Patel.

Marketing automation with Convertedin

You now have a general understanding of what e-commerce automation is and how it can help your business.

Here we’ll be focusing more on the marketing automation for e-commerce businesses.

As mentioned, marketing automation helps you automate your ads to save time and offer accurate results and numbers. It can also help you generate more leads, and improve lead conversion.

As an ad-tech platform, Convertedin helps you do all that more. Our AI-powered ad automation platform takes your custom audiences and creates audiences for you.

Using AI, Convertedin takes your audiences and divides them into segments. This helps you understand who your customers are and reach each segment easily. It helps you target them with the products and services they are looking for.

With segmentation complete, Convertedin will start creating ads for your products and customers, who’ll see the ads relevant to them.

For example, if Anna likes buying hair care products, ads for your store’s hair care products will be the ones she sees when she logs onto her social media accounts.

The same with customer John, an athlete who regularly buys sports clothing. He won’t be seeing Anna’s hair care products but will see products similar to his previous purchases.

In addition, customers Andrew and Fred, who are lookalike audiences to John, will get the same ad.

This means that your customers will be seeing the products they need. You’ll also be getting a higher return on your ad spend (ROAS) for your ad campaigns.

With Convertedin, you can create tons of ads on autopilot. Plus you no longer have to create audiences or generate designs for your ads.

Final words

When considering e-commerce automation, you first need to decide what you want to automate.

Look at your daily, weekly, and monthly tasks. Find out what are the most-time and money-consuming tasks and start with those.

If you’re considering ads automation, it’s important you know the difference between ROI and ROAS and then look at how you want to address your customers.

Want to explore Convertedin’s segmentation and ads automation platform? Start your 14-day free trial now!

A Guide to the ROAS Formula and Improving Your Ad Campaigns

ROAS-formula

If you’re a business, you’re probably familiar with the term return on ad spend (ROAS). Better yet, you’re curious about the ROAS formula. And how it can and should work for you.

Whether you’re an online e-commerce business or if you have a physical store, you’ve probably dabbled in the world of advertising, particularly Facebook ads.

Depending on what you’re selling, you may have even ventured into Google Ads, PPC campaigns, or any other kind of advertising effort.

In this article, we’re going to talk about what the ROAS formula is, what good ROAS is, and how e-commerce businesses can improve their return on ad spend.

What is ROAS?

Return on ad spend (ROAS) is a metric used to determine the impact and return from your advertising efforts.

It tells business owners and marketing managers if they’re spending is reaping good results or if they should rethink their digital marketing strategy.

ROAS is different from return on investment (ROI). ROI is about the overall returns and costs incurred by your company or store. ROAS, on the other hand, focus on advertising only.

Check out the 46 E-commerce Vocabulary, Metrics and Biz Terms You Need to Know

If you’re spending money on software, ROI is the metric you use to calculate the return of that software on your employees and your bottom line.

You can think of ROAS as being a part of ROI. But not the other way round. You’d need to know if your return on ad spend formula is supporting your business or not. You’ll then want to use ROI to see how your advertising along with other expenses and efforts and translating into revenues and profits for you – or if they aren’t.

What is the ROAS Formula?

The return on ad spend formula is how you calculate your ad spend.

ROAS measures what you get for every dollar you spend on advertising.

This is what the ROAS formula looks like:

ROAS = revenue from ad campaign (divided by) cost of ad campaign = Ratio

The result of this equation is a ratio. You can also take the result of this equation and multiply it by 100 to get a percentage.

ROAS = revenue from ad campaign (divided by) cost of ad campaign x 100 = %

Let’s see the ROAS formula in action.

If you spend $10 on advertising and get $30 in revenue, then your ROAS is 3:1 or 30%.

That’s a simple example. Let’s take a more realistic one about some retailers’ ad spend.

furniture-store-example

Imagine a furniture store spending $50,000 a year in ads and generating $150,000 in revenue.

To calculate the ROAS for this furniture store, we’d need to divide the revenue from the ad campaign by the cost of the campaign.

That’s $150,000/$50,000 = 3:1 or x100 = 30%

The return on ad spend for this furniture business is 30%.

What is good ROAS?

Now that you know what the ROAS formula is, let’s dive deeper into a commonly asked question:

What is a good ROAS for my business?

To begin, there’s no one-answer-for-everyone for this question.

The reason is ROAS differs based on:

  • The size of the business
  • How long the business has been present in the market
  • The industry of the business
  • The cost per lead
  • The ad campaign itself
  • Overall health of your business

Among other things. But these are the main culprits.

Read 9 E-commerce Trends for 2021 You Need to Know

If you want to know how your ad campaign is performing, that is if it has a good ROAS, then you’ll need to “examine your specific scenario, research competitor ROI, and compare your results to the industry standard,” according to Lemonads.

To know whether you’re generating good ROAS, you need to see if your ad campaigns are generating $1 or more for every dollar spent.

Suffice to say, if you’re spending $1,000 on advertising and generating $500, you’re losing money. If you’re generating $1,000, then you’re not making money but you’re not losing it either. Which is still not a win.

If you’re paying $1,000 on ads and generating anything for $1,100 and more, then you’re making a profit – at least in terms of your ads.

What is generally accepted as good ROAS is 3:1 or 4:1, that’s $3 and $4, respectively, earned for every $1 spent.

Other factors that affect your return on ad spend is your business’s life cycle.

“If you’re a cash-strapped startup, you probably want the most bang for your buck. If you’re an established, healthy business, you may be willing to settle for a lower ROAS in exchange for increased brand awareness,” explains Segment.

Improve your ROAS

You know the ROAS formula and have a general idea about what good return on ad spend means.

Now, it’s time to work on your advertising efforts and get a better bang for your buck.

 1. Know your customers

You’ve probably heard this before – or more times than you can count. But understanding who your customers are plays a major role in how you create your ads.

If you don’t know who you’re targeting and selling to, chances are you’re going to waste lots of dollars.

Learn more about your customers through these 34 e-commerce quotes by industry experts

One way to focus on your target audience is by using your product’s buyer personas and working your way from there.

2. Segment your customers

You know your customers and buyers, now you want to ensure that your ads reaching them well.

To that and get the most from your ad campaigns, you’ll want to segment your customers. Narrow the segments instead of keeping them broad.

Your customer segmentation strategy will help you group customers based on geography, behavior, demographics, and psychographics.

This will help you understand your customers better, create better-targeted ads, and accordingly sell more because you’re offering customers what they want.

3. Use good ad copy

There’s no doubt that ad copy plays a role in how your customers react to your posts and ads. It can get them to engage with you, buy from you, or leave you.

good-ad-is-important-for-your-roas

The best ways to get customers to take action is to have a call-to-action along with one or more of these:

  • Social proof (’25 other customers also bought this product’ or ‘4.9/5 stars, rated by 1,000 happy customers’)
  • Create a sense of urgency (‘offer ends in 3 days’ or ’10 hours left for the 20% discount’)
  • Short, choppy copy that’s to the point and doesn’t bore the customer

A note though: If you use the ‘sense of urgency’ too often, customers will lose faith in your pricing and store. Use with caution.

4. Ensure your website is mobile friendly and loads quickly

Did you know that nearly 49% of e-commerce sales in 2020 were done by customers using mobile phones? (Statista)

It’s true. Data by Statista also shows that by 2021 (this year!), 53.9% of e-commerce sales will be through mobile. And it’s likely the rate will keep growing in the years to come.  

This means that if you ads are sending customers to landing page on your website, your site needs to be both mobile friendly and quick to load.

Customers using their phones will quickly leave a site that they can’t view properly or that takes too long to load.

Read Discover How and When to Use Dynamic and Static Ads

5. Avoid ad fatigue

Ad fatigue is when your customer sees your ad way too many times that they are no longer affected by the ad, the message, or the call-to-action.

You can avoid ad fatigue by changing the images and ad copy for you ads every now and then.

Ad fatigue usually occurs because of a increased ad frequency. Be sure to check your campaigns and stop those that have a low relevance score, if you’re doing Facebook ads..

6. Create retargeting campaigns

Retargeting campaigns are for customers who have clicked your ads, engaged with you, or purchased from you before.

To create retargeting ads, you need to ensure that you have the Facebook Pixel installed on your website.

Did you know that Convertedin can help you with segmenting your customers, creating lookalike audiences on Facebook, and with retargeting campaigns?

Now it’s your turn

Knowing and using the ROAS formula is just the first step in measuring the effectiveness of your ad campaigns.

Knowing your customers and their buying habits is one of the most important aspects of creating a successful ad strategy.

You can also use e-commerce automation to speed-up the process of creating your ads, reaching your customers, and retargeting them.

E-commerce marketing automation is where Convertedin comes in. You can upload your audiences to Convertedin and the platform will automatically create customer segments and lookalike audiences. It will then run your ads on multiple platforms..

Start your free trial now!

What You Need to Know about the Difference between ROI and ROAS

difference-between-roi-and-roas

When you’re running an e-commerce business, there are many metrics to consider to keep your business running, making revenues, and profits.

Among these metrics are two often mixed up terms. They are: return on investment (ROI) and return on ad spend (ROAS).

Let’s focus on the difference between ROI and ROAS and how e-commerce businesses can use each of them and when they should.

What is ROI?

Return on investment (ROI) is metric that measures the performance of an investment.

Investopedia explains ROI as a metric used to “evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.”

Businesses who use ROI try to see whether the investment they made was a good one or not.

ROI is calculated by dividing the investment’s net profit (or loss) by the initial cost. The result is a percentage.

This is what the equation looks like:

ROI formula

It also looks like this:

ROI = profits-costs / costs x 100 = %

Here’s an example of ROI:

Kelly invested $1,000 in a business venture and sold it for $1,300 a year later. To calculate the ROI, we’d have to divide the net profit (the $1,300 – $1,000 = $300) by the investment ($1,000). This would result in an ROI of $300/$1,000, or 30%.

ROI can be used for a variety of things, although most businesses use it as a profitability measure. ROI was an investment measure before everything turned digital. Online businesses use it too.

However, there are some downsides to ROI. “While ROI is a simple and straightforward measure, it does not take into account the holding period or passage of time, and so it can miss opportunity costs of investing elsewhere,” notes Investopedia.

What is ROAS?

Return on ad spend (ROAS) is a metric that measures the impact of your marketing and advertising. Every dollar you spend on ads needs to translate into a return, a result.

ROAS is the metric that measures that result.

Whether you’re trying to track clicks or conversions, ROAS is what tells you if the dollars you’re spending are resulting in high value or not.

Stay on top of your ads and read Facebook Ad Frequency: The Complete Guide for 2021

ROAS is how your business benefits from every dollar you spend on advertising messages and ads. The higher your revenue from dollars spent on ads, the better your ROAS.

The important thing about calculating ROAS is to know how much you are spending on ads and how much are you earning in return.

How to calculate ROAS

To calculate return on ad spend, you’ll need to divide your conversion value by the total amount of your advertising (or your advertising costs).

How to calculate ROAS – Image via Segment

But what is a conversion value?

The conversion value measures the revenue your business can generate from a single conversion.

This means that the ROAS formula can also look like this:

ROAS = revenue from ad campaign (divided by) cost of ad campaign = Ratio x100 = %

Let’s explain this better with an example:

If John spends $20 on advertising to sell a $100 product, then his ROAS is 5:1 or $5. That’s $5 in ROAS for every dollar spent to sell John’s product.

If your ROAS is less than one, it means you’re not making money; you’re losing money.

If your ROAS is $1, that is $1 earned for every $1 spent, it means you’re breaking even, which again isn’t a good indicator. But you’re not losing money.

But if your ROAS is above $3 for example, then for every $1 you spend, you’re getting $3 back and you’re making a profit. (That’s a 200% return on ad spend).

Discover the 46 E-commerce Vocabulary, Metrics and Biz Terms You Need to Know

If your e-commerce strategy is to achieve profit, then your goal would be to achieve the highest ROAS possible for your business. You’ll need to know what the average ROAS is for your industry so you can see how you average accordingly.

However, the target ROAS benchmarks are usually between 3.0 and 4.0. Again, these can differ based on the industry and the stage where the business is at. Larger businesses can enjoy good profits at a ROAS of 3.0, while smaller businesses might need to achieve a ROAS of 5.0 or more.

The difference between ROI and ROAS

You now have a brief idea of the difference between ROI and ROAS.

Do they sound similar?

Yes.

Are they similar?

Yes. And No.

The main difference between ROI and ROAS is that ROI measures the value of an entire investment. Yes, that investment can be ads as well. But it can also be an investment in a new business, a factory expansion, a new department, and so on.

ROI is profitability measure. It takes into account other types of spending, like new software for your business.

ROAS, on the other hand, is specifically about your ad spend and its performance. It won’t tell you if your ad spend translated into profit for your business.

Here’s another example that shows the difference between ROI and ROAS on application.

XYZ company spends $25,000 in ads and generates $100,000 in revenue from its ad campaign. However, it has other expenses such as software and personnel amounting to $90,000.

To calculate the ROAS: Revenue of ad campaign – cost = ratio x 100 = %

($100,000/$25,000) x100 = 400%

To calculate the ROI: profits-costs / costs x 100 = %

Profits (loss) = $100,000 – $25,000 – $90,000 = -$15,000

Costs = $25,000 + $90,000 = $115,000

-$15,000 – $115,000 x 100 = – 13%

As you can see, the ROAS is showing stellar performance. But once it’s included alongside other expenses to calculate the ROI, we see negative performance or negative ROI.

By calculating ROI, we can see that XYZ Company is making a loss.

Another major difference between ROI and ROAS is that ROI is about the money you make after deducting all your expenses, whereas ROAS compares between how much you’re spending and how much you’re making on ads only.

The sole purpose of ROI is to determine whether the campaign is worth the investment or not. By taking the margin into account, you can quickly determine your overall profits and determine what your actual ROI is.

The bigger picture of ROAS and ROI

ROAS focuses on advertising and its results. It helps businesses determine if their advertising efforts are paying off or not.

By focusing on ROAS, e-commerce businesses can make better future decisions, see where they need to invest their dollars, and how to better invest them.

That said, relying on ROAS only can be misleading for a business.

Why? Because ROAS is about advertising results only. Your ad campaigns may be resulting in a high conversion rate, but the cost of each conversion is quite high resulting in an overall loss for the company.

Power up your business and earn more about your customers through these 34 e-commerce quotes by industry experts

An example of this is a business selling a product for $30 but generating leads at $50 per lead. Each translates into a $20 loss for the company.

The loss doesn’t necessarily have to be in the cost of the lead in the ad campaign. The loss may come from additional aspects such as production and shipping.

This is where ROI comes in. It factors in the other expenses that aren’t just related to the ad spend.

“When you consider ROI vs. ROAS, it’s important to remember that it isn’t an either/or situation. Whereas ROI can help you understand long-term profitability, ROAS may be more suited to optimizing short-term strategy,” notes GoCardless.

Next steps

There are many differences between ROI and ROAS. As a business you can’t rely on just one metric.

We recommend using both. Use ROAS to see how your ad campaigns are performing, then use ROI to see how your overall marketing budget and other expenses fit in the equation.

This means that an effective digital marketing campaign would rely on both ROI and ROAS.

Another metric you should include in your digital marketing efforts is customer lifetime value (CLV). CLV combined with ROI can offer great results for your business.

Want to know more about the metrics and means to help your e-commerce business? Tell us what you’re struggling with in the comments and we’ll share our tips with you.

Want to read more? Discover the 9 E-Commerce Trends for 2021 You Need to Know

Understanding How and When to Use Dynamic and Static Ads

dynamic-and-static-ads

As a store owner or e-commerce business, ads are an essential part of your marketing strategy. There are two main ad types you need to be aware of. Those are dynamic and static ads.

These two ad formats are in constant comparison. Which means you neead to know as much as you can about them.

For the purpose of this article, we are focusing on e-commerce businesses and their use of dynamic and static ads.

We’ll explain each ad type, compare them, then see which is more suitable for your store.

So what are the differences between dynamic and static ads?

Let’s find out.

Dynamic and static ads

Before we begin, there are a few points we’d like to highlight.

When you’re about which ad type to use, you’ll need to consider your budget and audience.

You’ll also need to consider your ad frequency so not to spam current and potential customers with your ads.

Read E-commerce Automation: How to Save Time and Boost Revenues

In addition, the dynamic and static ads mentioned in this article primarily relate to Facebook.

Last but not least, Facebook reported that the number of people advertisers can reach on its platform stood at 2.14 billion in Q4 2020. That’s a 2.2% growth from Q3 2020.

What are static ads?

Static ads are ads that involve a static image. The earliest forms of ads were static ads.

Many businesses rely on static ads because they are less costly to make.

It’s cheaper to create a visual or even several visuals to A/B test than create a video for example.

In a dynamic vs static ads comparison, static ads can be easily used across multiple social media platforms without having to go through technical requirements – just image resizing.

Static ads are usually used to ask for something like asking for

  • Page likes
  • Page posts
  • Mobile app installs
  • Clicking a link
  • Redirecting to an external page (blog post, product…etc)

Depending on your ad placement, static ads can appear in a user’s News Feed on desktop or mobile or on the right hand side rail on desktop.

Static ads are a good option for businesses with limited ad budget.

Let’s see what their counterpart, dynamic ads have to offer.

What are dynamic ads?

Dynamic ads are ads that offer a rich experience to users. They can include video and multiple products or images.

Dynamic ads also offer a personalized and engaging experience and result in higher conversion rates for businesses.

Read A Guide to the ROAS Formula and Improving Your Ad Campaigns

When businesses create dynamic ads, they tend to create multiple versions to ensure that personalization. And because dynamic ads are more personalized than static ads, they tend to change based on consumer behavior.

Dynamic vs static ads

Comparing dynamic and static ads, there’s no winner. Simply, there’s no one-ad-type-fits-all-businesses.

Sad but true. You see what works for one business may not work for another.

This shouldn’t come as a surprise. However, there are 3 major determining factors for what to consider when you’re creating your ads.

what-to-consider-for-your-dynamic-and-static-ads

If your site doesn’t offer a multitude of products, then a static ad would be a better option for you. On the other hand, if you’re selling hundreds of products, then dynamic ads will offer better options for you.

You can use dynamic ads to create a carousel of products whether as suggestions for customers on social media, especially Facebook, or for retargeting purposes.

Getting started with dynamic ads

To create a dynamic ad, you need to have a dynamic audience. This in turn means you should have a Facebook Product Catalog in place.

As an online business, you have a store with multiple products. We’re talking tens and hundreds of products not 5 or even 10 pieces.

Check out What you Need to Know About the Difference Between ROI and ROAS

You’ll need to upload those products to your Facebook Product Catalog. From there, you can begin creating a dynamic audience and dynamic ads.

Final words

Both dynamic and static ads work well with e-commerce businesses.

However, the size of the business and the marketing budget dictate what type of ads you can run.

If you have a small business with 10 or so products, static ads would be better for you. Of course, you can test dynamic ads to see how they work out for you.

But remember they’re more expensive to make.

If you have a larger business with a variety of products, dynamic offer personalization which translates into a higher conversion rate for your brand.

At Convertedin, we offer both ad types. In fact, we offer a step further into creating those ads and getting them running. That is: ads automation.

The Convertedin ads automation system helps store owners and businesses like you run ads on autopilot. This means you don’t have to worry about creating multiple ads for various product categories.

Find out what Convertedin can do for your e-commerce store with dynamic ads automation.

[Guide] The Complete Guide to Ads Automation Using Convertedin

Ads automation

Ads Automation is the newest thing in ads. It’s what many online businesses are doing and what many e-commerce stores and shops want and need.

That’s why we have created your complete and go-to guide on Ads Automation and how Convertedin makes the process a piece of cake for businesses.

Introduction

  1. What Is Ads Automation?
  2. What Is Convertedin?
  3. What Is Automating Data Collection and Customer Unification?
  4. What Is Automation Segmentation?
  5. What Is Audience Automation and Lookalike Audience Creation?
  6. What Is Automating Ads Creation?
  7. What Types of Campaigns Are Supported by Convertedin?
  8. What Is Facebook and Google Pixel?
  9. What Is Catalog Automation?
  10. What Is the Onboarding Process?

Introduction

Store owners, e-commerce business, and media buyers often struggle with customer data and how to use that data to create audiences, ads and campaigns, and reach their ideal customers.

It’s true, despite the upgrades provided by social and digital marketing channels like Facebook, Twitter, and Google, it’s still no easy feat to have everything in one place.

The targeting and ads creation process is still time-and-cash-consuming and involves many errors.

But what if you could zoom in on a customer and target them directly?

What if, instead of creating audiences and individual ad campaigns, everything could be done for you, easily and effectively with no human error?

Business would be a lot easier, right?

If the hassle of creating audiences, targeting and segmenting them, and then selling to customers is something that has ailed you for some time, then the solution to your problem is: Automation.

And we have just the tool.

Read on to find out what ads automation is, how you can collect customer data, segment customers, create ads, and lots more, automatically.

What Is Ads Automation?

Ads Automation is the process of creating ads automatically based on data you provide or those generated for you.

Automated ads remove the guesswork involved in advertising and reaching audiences.

In other words, if you have an audience ready, Convertedin can easily target them and generate lookalike audiences and then target and retarget them for you.

What does Convertedin do in Ads Automation?

If you don’t have an audience, Convertedin will generate the most suitable and compatible audience for your business and then generate lookalike audiences, and launch campaigns and retargeting options without you having to lift a finger.

What Is Convertedin?

What does Convertedin do in Ads Automation?
What does Convertedin do in Ads Automation?

Convertedin is an ads automation platform that helps e-commerce businesses, marketers, and media buyers manage data, audiences and ads campaigns seamlessly and effectively.

You no longer have to go through each campaign or ad set manually.

If you already have some customer data ready, you can upload it to the Convertedin CRM, which will convert this data into segments and then audiences to be targeted.

The Convertedin CRM will also create unlimited segments for your customers, based on either initial data you provide or data provided by Pixels installed on your website.

Convertedin’s segmentation system will manage segments and create new ones based on your visitors and their behavior.

From these segments, you will be able to target potential customers, reach out to people who browse but never purchase, and understand your customers and how they react to your store much better.

Convertedin offers you multiple digital channels for your ads campaigns, including but not limited to Facebook, Google Ads, and Twitter.

What Is Automating Data Collection and Customer Unification?

Any business needs to collect data about its customers so it can sell to them and reach more customers and expand its footprint.

However, the process of collecting customer data is strenuous to say the least.

Not to mention, you not only have to collect data, but also ensure that it’s not scattered, duplicated or lost.

automate data collection
automate data collection

At Convertedin, everything is about automation. This includes tools to make even the most annoying tasks simple and manageable.

What does this mean?

The Convertedin platform goes through all the data on your website or e-commerce business, including new and old customer data, creates customer profiles, and combines it in one place. In other words, Convertedin unifies all the data.

Any interaction between your business and your customer, such as website visits, adding to cart,…etc, the Convertedin platform will log that event and add it to your Convertedin account.

In other words, you no longer have to worry about scattered data and wasted ad spend.

In fact, having unified customer data means you can tailor ads based on your knowledge of your customer’s purchasing history and accordingly recommend relevant products to them.

This increases customer loyalty and can generate more sales.

And the best part?

All this is done on autopilot. Which means you save time and effort, cut costs, and save money while advertising.

What Is Automation Segmentation?

Segmentation is the process of dividing customers, users, buyers, or any type of people into groups or segments.

Segmentation is looking at customers from an analysis and analytics perspective.

This segmentation process helps you learn more about your customers and divide them into groups so you can target them with ads.

If you want to sell men’s shaving cream, your target segments should therefore be men in several age groups.

It would be pointless to have women in that category. That’s what a segment is for.

Customer segmentations
Customer segmentations

Once you connect Convertedin to your data source, the tool begins the segmentation process, giving you an unlimited number of segments to use based on the size of your business.

You can literally have 1,000+ segments for your business, allowing you to reach specific customers and generate more sales.

There are two main types of segments available on Convertedin. These are:

1) Pre-defined Segment: This includes 27 user segments such as high-spending customers, low-spending customers, idle customers, one-time shoppers, loyal customers…etc.

2)    Dynamic/Generated Segment: These segments are generated based on data available from your business’s website.

Each product in your store will have the following three main segments:

–          Customers who bought the product

–          People who added the product to their cart but didn’t buy

–    Customers who are likely to buy from you based on Convertedin’s AI recommendation engine.

So, for example if your business sells shampoos for colored hair, each shampoo product will have the above-mentioned three segments.

Once you have created your segments, it’s time to take them to the next level which is transforming them into an audience that can be used in ad.

With Convertedin, this process is automated as well. 

What Is Audience Automation and Lookalike Audience Creation?

So far we have covered data collection and segmentation. Now we move on to the next part, which is creating audiences and lookalike audiences.

What is an audience?

An audience is your target customers. It’s those people you have segmented into groups that are now going to be targeted with your ad campaign.

Creating an audience may not be a difficult task, but how about creating hundreds and thousands of audiences?

Not so easy anymore, right?

audiences
audiences

That’s what Convertedin does. It segments your customers, turns them into hundreds and thousands of audiences and targets them on social media and Google through several ads.

There are three types of audiences Convertedin works with. These are: Custom audiences, lookalike audiences, and dynamic audiences.

Let’s go into detail about each type of audience.

Custom Audience:

A custom audience is an ad targeting option that lets you, as a business, find your current customers on platforms like Facebook.

In this case, you will need to upload resources like customer emails, customer lists, web and mobile app traffic, or customer engagement on the platform to create a custom audience.

You don’t need to upload all of these, just one of them will do.

In other words, these are your current customers. They know you and may have previously shopped from you before.

Join Convertedin’s private Facebook Group The Ads Automation Family for more tips, insights, and conversations on ads automation.

Lookalike Audience:

A lookalike audience is an audience that has similar qualities to your custom audience. They are people who act like your customers and are therefore potential customers for you.

Facebook explains it best. It describes the lookalike audience as “a way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.”

In addition, Facebook says that when it’s time to grow your business, that’s when you use your custom audience to create a Lookalike Audience.

For example, Convertedin creates a segment called “high-spending customers.” It then turns them into an audience (called “high-spending customer audience”) to use in an ad campaign. After that, Convertedin will create five lookalike audiences based on that audience.

Dynamic Audience:

A dynamic audience is for companies and e-commerce businesses who have a product catalog, particularly a Facebook Product Catalog.

If you don’t have a catalog, you won’t be using this type of audience.

Now that you’re familiar with the audiences, let’s see how this lines up in the ads creation process.

Imagine the number of audiences and lookalike audiences and the time, effort, and money needed… what if this can be automated to save all 3?

Convertedin is all about optimization and automation. So the process of creating the above mentioned audiences and creating ads campaigns is a piece of cake.

Everything is done via the Convertedin account. You won’t have to do a thing, except save a ton of time and lots of precious dollars.

Next step?

Automating Ads Creation

Now that you have your audiences ready, it’s time to move on to ad creation or rather the automation of the ads creation process.

Normally, Automated Ads is a feature offered by platforms such as Facebook and Google. The process involves machine learning and artificial intelligence to build and run ads with minimal content during setup.

But how many ads can you run at the same time?

Or better how many ads can you keep up with at the same time?

Not a hundred, we can guess.

That’s what Convertedin does. We take the hassle out of the process and ads are created based on the audiences and everything is run automatically from your Convertedin account.

ads
ads

And yes, you can run hundreds of ads at the same time.

Let’s say one of your customers was targeted with an ad campaign. They clicked the product or added it to their cart, but never purchased it.

In a retargeting campaign, this customer is at the top of the list. They are interested but need to see your ad a couple more times to make the purchase.

Using the hundreds and thousands of audiences the Convertedin tool has created, Convertedin takes on the targeting and ads creation.

No manual work or need to hire a team, which means saving time and money, not to mention sparing yourself a massive headache.

Convertedin generates all the data and enables you to run as many as 1,000 ad campaigns as you like.

What Types of Campaigns Are Supported by Convertedin?

Like everything to do with advertising, there are various types of campaigns your business can work with.

Here is a laydown of the campaigns, Convertedin works with:

1)   Prospecting: This is a kind of cold reach. Basically, these are customers your business has never interacted with before.

This campaign is created based on a lookalike audience of people who previously purchased from your business.

In other words, you have an audience of buyers, these are new people but who are similar to your buyers.

2)  Retargeting: Once people from lookalike audiences take action (such as clicking on a product), they become part of a retargeted audience.

In addition, customers from your current audiences are retargeted as an upsell.

They have previously purchased a product, so Convertedin shows them similar or related products that they are more likely to need and buy.

Moreover, any person who comes to your website, as long as you have included the Facebook Pixel, will be added to your audiences and retargeted automatically.

3)     Dynamic Prospecting: This applies to Facebook. The social media platform checks who has entered your website or online store and creates an audience of people similar to them. It’s like a dynamic lookalike audience but no one uses this term.

4)     Dynamic Retargeting: Whenever a customer accesses an item on your product catalog, the moment they log in on Facebook, they will see an ad with the item they viewed in the catalog.

Once a customer enters your website or online store, they are automatically included in your audience lists and can easily be retargeted as a potential buyer.

What Is Facebook and Google Pixel?

When you’re advertising a product or business, it’s important to track where your customers are coming from, where they are going (on your site or store), and what they are doing there.

The way to do this through the Facebook Pixel and Google Pixel.

A pixel is a piece of tracking software that you embed in your website or online store to track customer movement and engagements.

The pixel shows how your customers are moving about, acting, and reacting within your website.

It not only gives you more information about customer behavior, but also gives you insights on your customers.

Once you embed the pixel, Convertedin uses the data available on your website and creates audiences, lookalike audiences. It then retargets potential customers who are more likely to buy from you.

Depending on your business needs you can include the Facebook Pixel, the Google Pixel or both, and we recommend having both if you plan to use Google Ads.

What Is Catalog Automation?

A catalog is a list of your products with pictures and details for each product.

Creating a catalog for your business is a time-consuming task. Not to mention, it involves a significant amount of donkey work.

There’s also the time and effort wasted when you need to update your catalog or worse edit parts of it.

If you’ve created a catalog before or uploaded one to Facebook, you probably know what we’re talking about.

One of the top problems businesses struggle with when it comes to the catalog is syncing the product list on their website with Facebook.

Also, have you struggled with un-updated inventory? A customer adding a product to their cart but on checkout, they can’t buy it because it’s not there?

Have you had to review and make changes to your product catalog to ensure everything is where it should be?

By understanding all of these problems, Convertedin allows businesses to automate the entire catalog upload process.

How?

By connecting Convertedin with your website and inventory, the tool delivers data directly to Facebook and maintains inventory-related data.

You no longer have to worry about your inventory not syncing with Facebook or items missing.

This is Catalog Automation. It helps your business focus on more important things like pricing and driving sales.

You can call it magic!

What Is the Onboarding Process?

Last but certainly not least, Convertedin provides customers with an easy-to-follow-and-use guide. Also known as the onboarding process.

The onboarding process will take you step-by-step through all the information you need to fill in order to start generating audiences, segments, lookalike audiences, and create campaigns and ads.

It may sound complex but the truth is: it isn’t.

Why create a complex process when the aim is to facilitate things for businesses?

The onboarding process shows you how to find the data you need, how to compare segments, results, campaigns,…etc.

Are you ready to get started with ads automation?

Sign up today and let Convertedin take away the headache and drive customers to your store.

Don’t forget you can join Convertedin’s Facebook Group The Ads Automation Family for more tips, insights, and conversations.

What Is Marketing Automation? How Does It Work?

marketing-automation-data

When you’re running a large business or managing marketing campaigns across multiple audience segments, creating individual campaigns becomes a bore, not to mention terribly tiring. That’s why marketing automation was born.

Let’s explore what this type of automation is, how it works, and how we can help you use it.

What Is Marketing Automation?

Marketing automation, a sub-category of e-commerce automation, is software or technology that allows marketers to conduct their marketing processes and campaigns across various channels automatically, or as we say in Convertedin, on autopilot.

Using marketing automation, or automated marketing, marketers and businesses can target and reach customers using automated messages via email, websites, social media, or even text.

By the way, automated marketing for online stores is known as e-commerce marketing automation.

Marketers and salespeople use automation to create online marketing and sales campaigns automatically so they can drive more business, revenue, and enhance overall efficiency of their ads.

Used effectively, marketing automation can easily reduce the load for repetitive tasks, such as social media posting, email marketing, and ad campaigns, allowing marketers and employees to focus on other problems and processes within the business.

Discover the 46 E-commerce Vocabulary, Metrics and Business Terms You Need to Know

Moreover, automation reduces the risk of human error and is not only efficient but also allows businesses to create “a more personalized experience for their customers” and facilitates the overall process, according to HubSpot.

“Marketing automation helps with lead generation, nurturing, and scoring, as well as with measuring overall [return on investment (ROI)] on campaigns,” notes SalesForce.

The benefits of automated marketing include time-saving and cost-cutting. These benefits become clearer as an organization or company “grows in size and complexity,” adds SalesForce.

“Good marketing automation systems are designed to scale alongside your business,” SalesForce says. 

At Convertedin, we not only offer marketing automation and automated ads, but we help businesses create customer segments on autopilot.

According to data by The Annuitas Group, businesses that use marketing automation to nurture prospects enjoy a stellar 451% growth in qualified leads.

How Does Marketing Automation Work?

Put simply, this form of marketing allows business to collect customer data through a variety of sources and customer interactions.

These include, but are not limited to, website visits (including actions taken on the site), email marketing, social media, and mobile app usage (if available).

In other words, these actions form data which help a business form a 360-degree customer view, offering businesses better customer insights.

After that, the marketing automation software takes charge of creating customer segments and targeting to reach the right audiences on a large scale.

Which Platforms Allow Automated Ads?

As you can expect, the top social media platforms offer marketers the chance to automate their ads. You can find these options on Facebook, Twitter, and Google.

Read: What You Need to Know about the Difference between ROI and ROAS

Still, there are downsides to using the platforms’ automated ads. For one, you still have to do a lot of legwork to get the ads done right.

Not to mention, if you’re using Facebook, your ads may result in ad fatigue due to the high ad frequency.

Marketing automation with Convertedin

At Convertedin, we take out the hassle of that legwork and allow you to automate across both platforms with the same customer segments you have created.

As your business grows and adds more customer segments, Convertedin automatically adds them in your segments and targets them across several platforms.

Start your free trial with Convetedin today.

Understanding the 360-degree View of Your Customer

When working in marketing, there are many aspects that come to light that need to be addressed. On top of this list is anything to do with your customers, particularly their data. Hence, the 360-Degree Customer View was born.

Having customer data is of utmost importance to businesses nowadays. But the problem is that most of this data is scattered as customers interact with brands and with each other across multiple platforms: social media, mobile apps, in-store, on-ground, via websites, and more.

So how do you combine all of this and reach your customer? That’s the focus of today’s topic: the 360-Degree Customer View.

What Is a 360-Degree Customer View?

A 360-Degree Customer View is being able to collect all of your customers’ data in a single place. This data can include, but is not limited to, basic information such as names, telephone numbers, email…etc.

It also includes past and present billing information, purchasing activity, their interactions with your customer service representatives, and last but certainly not least, their social media behavior.

Here’s What You Need to Know about the Difference between ROI and ROAS

With the never-ending increase in online apps, people are getting drawn to personalized experiences that tailor to their needs. That’s why integrated approaches like the 360-degree customer view have become a hot topic now.

What does a 360-Degree View of a Customer Do?

It helps you, as a business, not only collect data but get a better understanding of your customers. Once you do, you can serve them better and reach them better.

In other words, a 360-Degree Customer View helps you build long-term relationships with customers and supports your business growth.

A 360-degree customer view can also be described as the foundation that makes an organization’s relationship with customers an experience-based relationship rather than a transaction-based one.

In other words, it’s a view that acts as a melting pot that syncs all customer data together.

With this unified knowledge, your business can acquire more precise customer insights and build unique customer experiences.

360 degrees is a relationship cycle that consists of many touchpoints where a customer meets the brand. Be it through purchases or marketing communications, via customer service or on social media,” explains SuperOffice.

A great product isn’t enough to drive customers, but having a great customer service experience can help.

If your customer service representatives have all the info they need on customers, they can easily respond to them, answer their complaints and queries – without having to request background information – and support their needs.

Read: 46 E-commerce Vocabulary, Metrics and Business Terms You Need to Know

“If you, as a company, are present at and collect information on each stop in this 360-degrees relationship cycle, then you truly know your customers. It helps you better understand your customers’ priorities and preferences. Which, in turn, means you can position yourself to better predict their current and future needs,” adds SuperOffice.

Everything under one roof

Imagine an unmotivated salesman going to work and having to call around four or five people to get customer data.

Now, imagine another person having the same information all on their desk.

Who is more likely to take relevant quick action?

Having strategies that shorten the chain and give us a multifaceted view of our customers is exactly what businesses should be looking for. Or maybe they are but don’t know what this strategy or tactic is called.

The 360-degree customer view provides this single yet comprehensive view of your customer even if that customer’s data is scattered across different applications and platforms.

Conclusion

Data shows that under 10% of companies use a 360-degree view of their customers, while only 5% use the 360-degree view to support and grow their businesses, says research firm Gartner.

So it’s no wonder companies are struggling. They are missing out on a major source of help when it comes to customer data.