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.

What You Need to Know About Facebook’s Dynamic Ads and Static Ads

In the world of advertising, there many forms an ad can take. Each social media platform comes with its various ad options.

In this article, we will be talking about Dynamic ads and Static ads.

Main Criteria for Any Ad

When conducting ads, whether on Facebook or any other platform, there are a few basic rules you need to remember. Think of them as a 3-point checklist.

  1. Your branding needs to be the same across all ad formats, even if you’re targeting different audiences. Experiment with different text, images, and calls-to-action (CTAs).
  2. Run campaigns for at least two weeks, with minor changes if needed, so you can find out what works and what doesn’t.
  3. Refresh your ads regularly to avoid being repetitive, since many Facebook users log in daily.

Find out the difference between ROI and ROAS to make better use of your ad campaigns

Ad Formats

Depending on your choice of platform and where your audience are, you’ll notice that different platforms have similar ad options.

For today, we’ll be focusing on Facebook ads, particularly the differences between the Dynamic Ad and the Static Ad.

Each of these Facebook ad types offers “a different set of risks and rewards,” explains Adquadrant.

Let’s go into detail and see what each is about.

But First Some Data

On average, Facebook enjoys roughly 1.79 billion active daily users, according to June 2020 data by Zephoria.

Moreover, like any ad format, it’s important to segment your users carefully to ensure your ads are well-targeted and avoid wasting ad spend.

The amount of content a Facebook user can see in their News Feed could reach or exceed 1,500 updates. This includes likes, shares, stories, and page updates.

Facebook’s algorithms then attempt to reduce that number to 300 updates. This is based on a user’s likes, hides, and their scrolling activity, explains Nanigans.com.

Static Ads

Static Ads involve page posts, page likes, mobile app installs, and directing users to a landing page.

This ad type normally appears either in a user’s News Feed or on the right hand-side of the page if they are using desktop, or on a mobile’s News Feed.

Static ads work best with seasonal and regional topics, as well as major local or international events.

This makes your ads less intrusive because your target audience and their friends and family may be talking about these topics.

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

If you’re using a video ad, then “the goal is to raise brand awareness and word of mouth. In contrast, static ads are aimed at directing consumers somewhere else, so make sure your landing page or app is ready to receive visitors,” says Nanigans.com.

Dynamic Ads

Dynamic ads are used to promote your business’s inventory “to people who have expressed interest on your website, in your app or elsewhere on the Internet,” explains Facebook.

These ads “look exactly like other single image ads, carousel ads or collection ads on Facebook, Instagram and Audience Network.”

The difference is, instead of having to create an individual ad for each product or item in your inventory, dynamic ads allow you to create “an ad template that automatically uses images and details from your catalogue for items you’d like to advertise,” Facebook says.

You can use dynamic audience and dynamic ads to retarget customers who took an action on your website or app.

You can even use broad audience targeting and reach people who “may not have visited your website or app before.”

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

If you’re using a broad Facebook audience, you’ll need to install the Facebook Pixel on your website and create a Facebook Product Catalogue to create dynamic ads.

The dynamic ads show relevant products from your Facebook Product Catalog to people when they visit Facebook, Instagram, the Audience Network or Messenger, offering product recommendations.

If there’s a type of ad you’d like to learn about, leave us a comment below.

The 7 Best Advertising Platforms for Small Businesses in 2020

best advertising platforms

You’ve just started your eCommerce business (congrats!) and you’re determined to make it grow. 

So, you’re ready to take advertising more seriously. To “pump” some traffic into your website, to fuel sales…

And you ask yourself: 

What are the best advertising platforms for small businesses in 2020?

For that..

You have 2 main criteria:

  • To have a low cost per click 
  • To get you good conversions

Now, here are your 7 best options — the top advertising platforms in 2020 that are both affordable and effective.

best advertising platforms

But First: What Are the Different Types of Advertising Platforms?

For they do come in all different stripes.

So, we have:

#1 Search Engines 

With Google Ads dominating the market, followed closely by Bing.

Why would you bet on search engine marketing? Because you want to have your business listed among the first ones in the search results.

To make it visible to your target audience when they look for products like yours.

#2 Social Media Sites 

Facebook Ads, Instagram Ads, Twitter Ads are some of the best social media advertising platforms.

They make one of the easiest to use, but hardest to master types of online advertising platforms.

#3 Digital Publications 

Digital newspapers, digital magazines, blogs… You don’t run out of options when it comes to types of digital publications that you could promote your small eCommerce business on. 

#4 Forums

Quora and Reddit make the perfect places for small business owners to get their brands in front of large audiences of users.

#5 Online Retail Marketplaces

Think eBay Ads and Amazon Ads. 

Ok, they’re not precisely small budget-friendly, but still: you need to think two steps ahead, right?

After all, you’re planning to grow your eCommerce business.

7 Best advertising platforms for online businesses

Now, let’s get back to the main topic of this post and delve into the best advertising platforms to grow your business in 2020:

1. Google Search Ads

Google ads best advertising platforms

40,000 search queries are processed on Google every… second on average. 

Pretty crowded in there, isn’t it?

So, if you want your business to stand out from that huge crowd, invest in some intent-driven Google Search ads.

And give your website a better exposure in the SERPs.

Tip! Include the city name if it’s a local business that you’re trying to promote.

Why use Search Ads?

Because it’s a “low hanging fruit” type of advertising tactic. One that’ll help you drive traffic to your business site fast and easy.

Pros 

  • You get to be very specific with your ads, to make them hyper-targeted; tailor them based on location, demographics and other criteria

Cons

  • You can go over your budget quite easily if you’re not strategic with your choices when you set up your Google Ads campaigns

How much will it cost you to advertise on Google Search?

Be ready to spend between $1 and $2 to have your ads displayed in the Google Search Network.

2. Google Display Ads

display ads google

Another one of the best advertising platforms for small businesses in 2020 is Google Display Ads.

They’re those Google-powered visual ads that get displayed on other relevant websites.

Why use Google Display?

Because you get access to a network of 2 million websites (Youtube, Mobile App Targeting, and Google Shopping here included). 

Pros

  • You reach a large audience of internet users
  • You can make the most of your remarketing ads: retarget former visitors of your website or simply users who’ve shown interest in products or services similar to yours

Cons

  • Expect the initial setup to be a bit more complex, compared to the Google Search ads
  • You have no control over which websites will display your ads
  • You cannot target a specific audience for your ads

How much will it cost you to advertise on the Google Display Network?

The average CPC is under $1.

3. Bing Search Ads

Bing

Surprised that we’ve got Microsoft’s search engine listed among the top advertising platforms in 2020?

Don’t be! For it comes right after Google Ads. 

Is Bing Advertising worth it?

Just think about it:

68 million people search on Bing every month. 

Add this massive audience to the millions of users that you’ll be reaching out to via your Google Ads and… do the math.

Pros 

  • You can import all your Google Ads campaigns to Bing 
  • Users get to reach out to all those Bing users that your competitors have overlooked (68 million, remember?)
  • You have total control over your campaigns: you know, at any moment, how much each click costs on your partner platforms
  • Marketers can stick to their budget: it’s cheaper than Google Ads

Cons 

  • a smaller market share, which translates into less traffic that you can drive to your website (if you decide to stick to Bing Ads only)

How much will it cost you to advertise on Bing?

Around $1.54 per CPC.

4. ConvertedIn

ConvertedIn

An ad automation platform that you’ll want to consider when striving to grow your small eCommerce business. You can use ConvertedIn to get the best ROI for your Facebook or Google ads. 

The best part is it will take care of everything from segmenting unique profiles to creating an audience and lookalike audience. You can use it for handling prospecting and retargeting campaigns on autopilot.

Why ConvertedIn?

Because it makes remarketing and retargeting so much easier.

Pros

  • You get expert help to optimize your ads; to strike that perfect balance between low costs and high click-through rate
  • You’ll get to tap into social media retargeting

Cons 

  • You have no control over the bidding

How much will it cost you to advertise on ConvertedIn?

It starts from $99 for the starter pack and goes up to $499/month and even custom plans for enterprise level stores.

5. Facebook Dark Posts

Facebook dark posts

Remember the (not so) good old days when, if you wanted to promote your business on Facebook, you had to build and manage an audience first?

Not the ideal scenario when you’ve just opened a small business and you want to grow it fast and… on a budget.

These days, you have a better option at hand: Facebook Dark Posts. The unpublished posts running as targeted ads on the News Feed of a specific audience.

Why Would You Go for Dark Posts as Your Facebook Advertising Approach?

Because you get to target multiple groups of users with different offers and slightly different ad copy. 

And because by targeting specific groups of people, you take the spammy posts out of the equation.

Pros

  • You get to target anyone on Facebook; anyone who might be looking for a product/service like yours
  • Users can even set targeting to specific user credentials: Gmail users, users in your hometown, active Facebook spenders, etc.

Cons 

  • you shouldn’t expect to reach a huge audience (rather a smaller, but a target one)

How much will it cost you to advertise on Facebook Dark Posts?

It depends on whether you want to drive more engagement , traffic, or conversions with your ads.

6. Instagram Ads

Advertising platforms

Over 1 billion active users per month…

Now, that kind of exposure is gold when you’re advertising a small business online.

Is Instagram a good way to promote your business?

  • Yes, if you’re targeting a much younger audience
  • or, if you’re selling fashion, health, food, or other types of consumer products

Pros

  • Users get to include your business details in all of your posts, making it easier for potential customers to reach you
  • Your ads get displayed as regular posts on Instagram, making them look less… evident
  • You can drive some user interaction around your new brand, even if your niche is a “boring” one: stunning visuals appeal to everyone, after all

Cons 

  • You’re constrained to using it on mobile if you want to access all its features
  • You don’t get an in-depth reporting (e.g. how customers interact with your Instagram ads or who’s clicking them)

How much will it cost you to advertise on Instagram?

Somewhere around $0.70 and $2.00 per click. But costs will vary according to the industry you target and the ad formats you select.

For a highly competitive industry, expect to spend around $3 per CPC.

7. Twitter Ads

Twitter

“What’s the best advertising platform for my small business?”

It could be Twitter if:

  • It’s a niche global audience that you’re targeting (and precision-targeting is the best tactic for small business with… small budgets)

Pros 

  • You get to promote a wider variety of services on Twitter 
  • Users get to make the most of its hashtag-based targeting capabilities: reach out to those people who have mentioned a specific word during the last seven days
  • Advertisers get access to an international audience of… 262 million users

Cons 

  • The reporting around your campaigns is not as detailed as the one you’d get on Facebook or Google 
  • Your target customers might just… miss your ads in that constant stream of tweets

How much will it cost you to advertise on Twitter?

Prices go from $0.50 -$2/action for promoted Tweets to $2 – $4 per follower for a promoted Twitter account.

So, Which Advertising Platform Is Right for Your Business?

It depends on:

  • Your niche: what do you sell?
  • The advertising objectives (engagement, traffic, brand awareness, etc.)
  • A social media platform that your target audience uses
  • The way your potential customers search for answers to their pain points

Tip! Go for a multi-platform approach. It’s one of the most effective advertising strategies.

Now, let’s say that you’ve made your choices going through this list of the best advertising platforms for small businesses in 2020.

You’ll still need to:

  • create and optimize your ad copy
  • fine-tune it to each platform
  • set bidding strategies for each ad platform 

Pretty overwhelming, isn’t it?

But what if you could have these platform-tailored and hyper-targeted ads created for you… automatically?

Just fill in the form below for a quick demo of Converted.in and find out how you can put your advertising campaigns on autopilot!

Ripple closed-loop Ecommerce ads automation

In this post, I’m discussing the ripple closed-loop ads automation in e-commerce and how to grow your sales using the data you already have. 

We will deep dive into the ads automation for E-commerce and how to utilize the ads automation on Facebook and Google.

Before we started. We created a Facebook group in case you were interested to know more about the ads automation and how to make self-growing ripples join us!

This section is assuming you have a new e-commerce store, and that you already have some customers, but before jumping into the ripple closed loops automated ads, I need to talk a little bit about the automation of the ads making sure we all are on the same page.

In order to start automated ads, you have to 

Install Facebook and Google pixels at your website, it’s a code snippet that you install to your website pages. 

The catalog that contains your products, sync of your products into Facebook and Google catalog module

Having those steps done, you can now create dynamic ads 

Dynamic Prospecting 

Dynamic Retargeting 

Dynamic Prospecting

: Facebook recommends your ads to audiences who are most probably interested in your products according to the data he has for their interests. Facebook controls what items to be shown in which order.

Dynamic Retargeting:

Retargeting your customers that broke the funnel at your website, trying to get them back to continue the business deal they started and never shaken hands on! Facebook recommends products to be displayed in which order to the customers.

The previous section is for the new-eCommerce as for the old ones that already have customers. The coming part is for you what we call the ripple closed loops ads. 

What I’m going to discuss next is the ripple effect and how to maximize the use of the data you already have to create infinite loops that generates new customers on every turn rocket-shipping your business. 

Let’s assume that you have 5000 customers, for the biggest part of your day you are focusing on getting new customers, however, your current customers are more likely to purchase faster than new customers. All it takes is to retarget him with what they might be interested in; it’s way cheaper than acquiring new customers and more effective. 

The thing is to effectively recommend what is the most interesting for them you need to have an internal recommendation engine, instead of showing ads for cross-selling in the checkout page, it will recommend it in the form of an ad, targeting the most likely to buy customers٫ 

Typically from what we found is that the data of the 5000 customers you have are not fully utilized, not even used correctly in most of the cases.

So typically if you are utilizing your data your funnel should be something like this:

Group of people visited your website, part of them decided to exit the journey at some stage, other part went through and became a customer, 

For the first part that exited early they are being targeted with ads trying to get them to buy, part of them will be your customer other parts will be out of the ads loop

For the two groups that became part of your custom audience you can use them to generate lookalike customers on social platforms. 

Those new custom audiences you can target them with ads, again part of them will go to your website and exit the journey you target them again once they are your customers create a custom audience and a lookalike audience and target the new custom audience with ads, and do all that again for the newcomers! 

If you were able to automate the processing of every new piece of data, coming to your store to be used to both target your customers to sell, and generate new lookalike audiences. That means that your system will be auto-scaling through a well-defined loop. 

The method I just mentioned, is being used at the ads platform through the Data Management Platforms. 

Data Management Platforms model customers’ data and generate lookalike audiences on the fly, it’s the process of generating lookalike audiences like the ones who interacted with the ads however they are totally anonymous. That was until 2008 then the landscape changed when more data specialized platforms appeared as such Customer Data Platforms.

Customer Data Platform is a platform that collects customer data and re-use the collected data in marketing.

The question here is what the tools you might use to be able to perform the ripple effect we discussed?

The direct answer, the biggest part of that you can do by yourself. Also, you can use any tool of the tools that are out there. Or you can use Convertedin which typically does all the mentioned above from a-z. 

Also you may join our specialized group to know more about the ads automation and how to make self-growing ripples join us!

 #Marketing #ads #advertising #facebookAds #google_ads

A Quick Guide to Online User Segmentation

When conducting your marketing efforts, the first thing you need to focus on is customer or user segmentation.

Why? Because it defines all of your future efforts and helps you determine if you are achieving a return on your investment (ROI) and indicates the success of your campaigns.

But first let’s explain what user segmentation is.

What Is User Segmentation?

Segmentation is a kind of division. You divide or categorize your users, customers, buyers, readers…etc into groups. These groups are called segments.

By understanding the different categories of your users, you can then take the next step which is to target them.

How to Use User Segmentation?

People are naturally different, even people in the same age range can act differently or have varying interests.

In other words, it won’t be fair to you or your marketing budget if you target people aged 15 to 60 at the same time.

This also applies if you try targeting males aged 18 to 25 from the Middle East and North America. Yes, their ages are close but their interests are far and wide.

Types of Segmentation

To divide your target audience, you need to understand the types of segmentation you can use.

You can segment your audience based on:

  • Demographics: This involves dividing users based on their language, age, and gender.
  • Geographic: This is where you segment customers based on location, whether it’s continent, country, city, or even a specific neighborhood.
  • Psychographics: The division is based on habits; this is the ‘why’ behind your users’ buying decisions.
  • Behavior: Here you segment customers based on their behaviors such as how they act and what they do. It’s the ‘what’ behind their decisions. This is section is also known as interests.

Lesser Known Types of User Segmentation

There are three more types of segmentation that are often forgotten or not focused on. They primarily rely on what you as a business offer and to whom.

These are:

  • Firmographic segmentation: This is used in B2B marketing; that’s when your target customers are other businesses.
  • Cultural segmentation:  Understanding your customers’ culture can also help you in your targeting. It offers some insight on how customers of a certain culture make their decisions.
  • Occasional segmentation: This is a form of seasonal segmentation where certain words, terms, or products appear at certain times of the year versus others.

“This [occasional] segmentation focuses on specific events that are completely independent of the customer. It divides the market into categories based on the various occasions when the customer plans to buy the product, actually buys the product or uses the product,” explains marketing strategist Paul Shepherd.

He goes on to say that occasional segmentation can be further sub-divided into:

  • Universal occasions
  • Regular personal occasions
  • Rare personal occasions

Understanding Your Users via Segmentation

By segmenting your customers into groups, whether through one or more of the above options, you can begin to create a clear picture of who you are talking to.

According to data compiled by Accenture, around 81% of consumers wish brands understood them better, knew when to approach them and when not to.

Moreover, roughly 66% of marketers “struggle to personalize content in real time,” says Adobe, which adds that 77% of marketers “believe real-time personalization is crucial.”

This means that the better you segment your customers or users, the better you can target them through ads and content.

Creating a Segmentation Strategy

Last but not least, when you’ve understood the various types of segmentation, it’s time to move on to creating your customer segmentation strategy and use it to drive better sales.

What You Need to Know About the Facebook Product Catalog

One of the best ways online sellers and shops can advertise their products and generate sales is through Facebook. Specifically, through the Facebook Product Catalog.

Whether you are an e-commerce business, ticketing agent, or even a hotel offering rooms and suites, the Facebook Catalog can help your business.

Here’s what you need to know about this sales option from Facebook.

What is the Facebook Product Catalog?

As its name suggests, it’s a catalog where businesses can showcase their products and services.

Remember when customers bought catalogs for their favorite brands and went through them to pick out what they wanted to buy?

IKEA is still one of those brands who publishes product catalogs with price tags for each their products.

That said, most customers and businesses are now online, specifically on Facebook, which has garnered over 2.6 billion daily active users.

With figures like that, it’s no wonder businesses are taking unprecedented steps to be on the social platform.

How Does the Facebook Product Catalog Work?

Like the published catalogs, the Facebook Catalog allows companies and sellers to display their products on its platform. Customers can then access these products and purchase them via the company’s catalog on Facebook and Instagram.

“You can create catalogs for different types of inventory, such as products (e-commerce), hotels, flights, destinations, home listings or vehicles,” Facebook explains.

The tool used to manage a brand’s catalogs is called the Catalog Manager. You will need to upload your products one by one to the product catalog.

What Can I Do with Facebook Catalog?

Once your Facebook Product Catalog is ready, which can be used both for Facebook and Instagram, you can:

  1. Add and manage information for your inventory. This includes titles, images, product descriptions, prices, and other options.
  2. Share access to your catalog, which allows your team to work on it collectively on your catalog.
  3. Create one catalog or multiple catalogs for your products and services.

Facebook also notes that you can “set up a localized catalog for multiple languages and countries.”

Can I Use Ads for the Product Catalog?

The obvious answer is yes. It’s no secret that Facebook would like to create ads for anything and everything on its platform.

These are the types of ads you can create once you’ve created your company’s Facebook Product Catalog.

Instagram Shopping

This option is only available for products. In other words, non-tangible services don’t qualify.

Using Instagram Shopping, you can include your products in both Instagram posts and stories.

Learn how to calculate the ROAS formula and improve your ad spend

In the United States, Facebook allows customers to purchase products directly from Instagram and check out from the platform.

Facebook Page Shop

Like its predecessor, this ad type is only applicable to products.

In this case, the shop on your business page acts like a storefront, while the catalog acts as a warehouse that stores your shop’s inventory.

“If you already have a Page shop with at least one product in it, [then Facebook has] automatically created a catalog for you in Catalog Manager that’s connected to your shop,” the social media platform explains.

The Facebook Page Shop allows you to manage your inventory either in your shop or in the Catalog Manager.

You can create the Facebook Page Shop from your catalog.

Dynamic Ads

Available for all types of inventory, Dynamic ads display products or items from your catalog to people who have looked for them online.

Discover how and when to use dynamic and static ads

According to Facebook, Dynamic ads “match items from your catalog with events from a Facebook Pixel or SDK, a piece of code installed on your website or app.”

To create a dynamic ad, you need to know and have a dynamic audience.

Collection ads

Applicable to all types of inventory, this ad format shows customers a collection of four items from your catalog. Customers can then tap the items to learn more or browse similar products.

What Is Facebook Dynamic Audience?

As part of this series on Facebook audiences and ads, we’ve tackled different types of audience. Today, we’re taking on Facebook’s Dynamic Audience.

If you’re wondering how you’ve never heard of this audience type or why it doesn’t appear often, you’re not alone.

Here’s what you need to know.

What is Facebook Dynamic Audience?

Unlike Facebook’s Custom Audiences and Lookalike Audiences, the Dynamic Audience is for companies, who have and use a Facebook Product Catalog to sell their products and services.

In other words, if your Facebook page doesn’t have a catalog you won’t be using dynamics audiences or dynamic ads in the near future.

It’s an audience that relies on engagement and interactions between customers and your products.

How Do Dynamic Audiences Work?

Put simply, if you have a product catalog on Facebook, once customers engage with it, then you have a dynamic audience.

Whether these users or customers have clicked on one or more of your products, bought an item from you, or simply added a product to their cart, this counts as an interaction with your shop and catalog and goes into to generate  a Facebook Dynamic Audience.

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

That said, there’s an important aspect to remember before you can start searching for your dynamic audience.

Your store needs to have the Facebook tracking pixel integrated in order to track your customers’ actions, says Nicolas Vibet, chief product officer at MakeMeReach.com.

How Is this Audience Dynamic?

The answer is since this audience type relies on interactions, it’s ever-growing.

Today you can have 10 users engage with your products, tomorrow that number can be 100.

Regardless of the number, whether it increases or decreases, the audience keeps forming and growing, making it a dynamic audience.

Learn more about ad campaigns in our Guide to the ROAS Formula and Improving Your Ad Campaigns

“Any interaction from users with your products, website or content will be tracked, and will design the Dynamic Audience further, reaching more people in the future,” says Vibet.

How Do I Use Facebook Dynamic Audiences?

Facebook doesn’t leave anything to chance. For the dynamic audience, Facebook has created an ad type called Dynamic Ads.

In brief, dynamic ads use items from your product catalog and display them to people who have “looked at or searched for” your products online.

Dynamic ads “match items from your catalog with events from a Facebook Pixel or [software development kit (SDK)], a piece of code installed on your website or app,” Facebook explains.

More on Facebook’s Dynamic Ads in our next blog post!

Here’s What You Need to Know about Customer Lifetime Value

One of the most important terms in business is the customer lifetime value (CLV), sometimes written as CLTV, and sometimes referred to as lifetime value of a customer.

Simply put, it’s a metric companies use to grow their business and learn more about customers.

Defining Customer Lifetime Value

Companies use CLV to measure the time they would need to generate money they invested in earning or getting a new customer.

CLV also helps companies understand how much revenue a single customer can generate for them during the span of their business relationship.

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

Imagine a company that wants to acquire a new customer. The CLV would be the metric it uses to forecast how much it would need to spend to acquire that customer and how much that customer would be worth for a given number of years, or the length of time the company determines.

Image from Pexels

If your company is looking to acquire long-term revenue-generating customers, then customer lifetime value would be an essential part of your process.

“The longer a customer continues to purchase from a company, the greater their lifetime value becomes,” HubSpot explains.

Why Is CLV Important?

CLV is an important metric “because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones,” explains Shopify.

If your company maintains a good customer support and customer success team, it can enjoy a long-term relationship with customers and turn them into loyal buyers. A lack may result in higher churn.

Companies need to understand what CLV is because it’s how they can associate profit to customer relationships.

Read What You Need to Know About the Difference Between ROI and ROAS

customer lifetime value guides companies into calculating how much they need to invest to maintain a relationship with their customers.

For example, if your company estimates CLV at $200 for a single customer relationship, then you shouldn’t spend more than $200 to maintain that relationship. Otherwise, you would be making losses.

Calculating Customer Lifetime Value

So how do companies measure CLV? There’s a way to calculate it.

Shopify explains the equation as being:

“CLV = average value of a purchase X number of times the customer will buy each year X average length of the customer relationship (in years)”

Let’s put this into an example. If you own a shoe store, an athlete or marathon runner who buys 4 pairs of shoes from you per year for eight years, would have their CLV equation looking like this:

$100 per pair of shoes X 4 pairs per year X 8 years = $100x4x8= $3,200

On the other hand, a mother buying shoes for her two-year-old daughter would be purchasing at $20 a pair. Her purchases would differ year after year and her CLV would look like this:

$20 per pair X 5 pairs per year X 3 years = $20x5x3 = $300

In other words, the athlete would have a higher CLV than the mother, from a business perspective.

Benefits of Knowing Your Customer Lifetime Value

By calculating the customer lifetime value for various customers, you can make many important business decisions.

Check out Convertedin’s Guide to the ROAS Formula and Improving Your Ad Campaigns

According to Shopify, these are the top four reasons you need to know your CLV:

  • How much money do you need to spend to acquire similar customers and have a profitable relationship
  • What kinds of products do customers with the highest CLV want
  • Which of your business’s products have the highest profitability
  • Which of your clients or which types of your clients are the most profitable for your business

Here’s What You Need to Know about the Facebook Pixel

One of the most important options provided by Facebook for businesses is the Facebook Pixel. Companies, small and large, use it for tracking purposes.

But what is the Facebook Pixel and how does it work?

That’s what we will be talking about today.

Facebook Pixel Basics

Facebook introduces its Pixel as “a piece of code for your website that lets you measure, optimize and build audiences for your advertising campaigns.”

Simple yes, but let’s explain it further.

You’re a business and you have a website. There is a lot of data you need, such as: Who are these people visiting your website? Where are they coming from? What pages do they visit? Which pages do they leave?

If these people are coming because you’re creating ads on Facebook, are they converting? Or people landing then leaving?

How Does the Facebook Pixel Work?

When you have a Facebook Pixel installed in your website, you can use it to track people’s actions when they visit your webpages. For example, you can track actions like buying a product or service.

Once they take an action, the Pixel is activated and reports the action taken. This means, you will know when a customer clicks your Facebook ad and converts on your website.

The “pixel also tracks user-generated events, such as sites visited, products added to cart, checkouts initiated and purchases made. So much as submitting a lead form on a website with a pixel gets thrown into the mix,” explains Adage.com.

Learn more about ads in our Guide to the ROAS Formula and Improving Your Ad Campaigns

“You’ll also be able to reach this customer again by using a Custom Audience. When more and more conversions happen on your website, Facebook gets better at delivering your ads to people who are more likely to take certain actions. This is called conversion optimization,” Facebook explains.

What can the Facebook Pixel do?

Its primary function is to “track.” But here is a list of tracking options that the Facebook Pixel can perform:

1)     Measure conversions across multiple devices

2)     Optimize delivery to people who are more likely to take action

3)     Create custom audiences from visitors to your website

4)     Give you more data about your website traffic

How to Set Up the Facebook Pixel?

Adding the Pixel to your website isn’t difficult.

You can even do it yourself if you can access your website’s code, you can step-by-step instructions using Facebook’s Help Centre.

Or you can have your developer set it up for you. Most people and businesses prefer the latter option.

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

Last but not least

If you’re just starting out, it would be a good idea to embed the Facebook Pixel into your website early on so you can track your audiences and their actions across your site. It will collect the data from your visitors and send it back to you.

“By targeting broader ranges of people you think will respond positively on your site, you’ll help feed the hungry pixel much-needed data that will later help you build lookalike audiences,” says Adage.com.

What Is Facebook Lookalike Audience?

Facebook is a common go-to advertising platform, offering various audience options for advertisers including today’s topic: the Facebook Lookalike Audience.

Having surpassed the 2.6-billion daily active users mark, Facebook will remain a top contender when it comes to advertising dollars.

What is Facebook Lookalike Audience?

Facebook’s Lookalike Audience is one of several audience types Facebook allows advertisers to target when creating ads on its platform.

Like its name suggests, a lookalike audience is similar to your current audience.

Basically, you are telling Facebook “This is my audience now show me who is similar to them so I can target them with my ads.”

Here’s what Facebook says about its lookalike audience option: “[It’s] a way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.”

Facebook notes that when it’s time to “grow your business,” that’s when you use your custom audience to create a Lookalike Audience.

Lookalike Audiences are lists of people to target with advertising who are similar to (or ‘look like’) the people currently engaging with your business,” Facebook explains.

HubSpot describes Facebook Lookalike Audience as a “sophisticated audience matchmaker for marketers.”

Cool, right?

Benefits of Lookalike Audience

This Facebook audience type allows advertisers to reach and target the best customers for a brand. It is like levelling up from Facebook Custom Audiences, which you use as the basis for your lookalike audience.

Lookalike audiences “increase the probability of generating high-quality leads and offer more value on ad spend,” explains HubSpot.

How to Create a Facebook Lookalike Audience

Like the Custom Audiences, you can get your targeting data from several resources. These can include:

Customer information: You can generate this from a landing page, newsletter list, website traffic, or a survey filled by customers.

Visitors: People visiting your website are a great resource and offer tons of data that can be used to re-target them across Facebook. You will need to have a Facebook Pixel to compile this data.

Mobile app activity: With a mobile app for your business or e-commerce store, you can integrate it with active Facebook SDK event tracking. This collects data from people who have installed and used your app.

Engagement audience: This is an audience who has engaged with your brand or posts across Facebook or Instagram. Engagement, according to Facebook, entails actions such as likes, reactions, comments, or shares. It also includes filling forms, video views, and actions on your Facebook page or Instagram business account.

Offline events: If you have an offline or brick-and-mortar store, create a list of those who have visited your store. The information collected can include interactions such as in-store visits or calls.

Last quick tip

When you’re using Facebook Lookalike Audiences, include people who are more likely to buy from you or those who have already purchased your service or product.

“Many successful marketing campaigns are built on email lists containing individuals who have taken key actions already, such as adding an item to their cart or purchasing an item,” says Adage.com.

This helps narrow down audiences and gets your brand closer to people with a bigger chance of buying from you.

Last but not least, creating Facebook Lookalike Audiences is an omnichannel marketing tool. It’s also based on having a customer segmentation strategy.

Start creating different Facebook audiences with Convertedin.