How To Increase Your Customer Lifetime Value with Re-targeting on Facebook

We live in a world of ever-faster pace with infinite information trying to influence decisions. Catching the attention of customers is becoming harder and needs a more personalized approach. It is essential to retain the existing customers and remind them about your excellent products and services. The higher your customer lifetime value, the higher the profit. The key to this is re-marketing! I will, in this article, go through the opportunities that Facebook gives for re-marketing to both individuals and B2B.

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Retargeting via Facebook

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All of us might have been annoyed from time to time with ads for a product or service following us. You visit a website or searched for some information online, and you see ads for the same. Whether we like it or not, anyway, it reminds us of that specific company, product, or service. We might then decide to go through with the shopping we left halfway.

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Facebook gives you a lot of opportunities to catch the attention of your customers. An email list of customers is all it takes. It can be people who have previously purchased from your site. Subscribed to your newsletter, downloaded something from your website, or just asked for more information. This audience is all you need to re-target these customers on Facebook. You can, on average, count on 60-70 % of your email list to be active on Facebook.

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Re-marketing is most effective if the message corresponds to where people are in their customer journey. The same message to everybody is not as effective as specialized ads. Ads that are based upon where in the funnel people are. So it is important to segment the customer audience. This you can easily do when you set the goals for re-marketing. It is important to add people to a Custom Audience based on the specific actions you're most interested in targeting. Customer audiences can be people who visit your home page, who view a product but do not make a purchase. This audience will help you create ads that are relevant to where people are in their customer journey.

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Creating Dynamic Ads

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Dynamic Ads will automatically show the most relevant products and ad creative across Facebook, Instagram, Audience Network, or Messenger. This based on the actions that they took on your website. It could be the items they abandoned in their baskets or a new product recommendation that is relevant to them.

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Keep in mind though that it is essential to separate customers from leads! Customers are people who bought something from your company. Leads are people who have subscribed for newsletter etc, but have not yet bought anything from your company. The message being put forward to these two different segments simply have to be different for an effective re-marketing campaign.

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What if your products or services are B2B?

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Re-targeting based upon your existing email list is one way to reach your present customers or leads. This with customized ads depending on where in the funnel the people are. Another excellent opportunity that Facebook offers is finding specific companies you want to target. People with certain job roles, industries, or locations. Let's say your company wants to focus on a new location where you need to reach out to businesses with information about your products or services. Research shows that the rates for opening marketing emails in Industries are just around  22%, with a click-through rate of a mere 3.57%. Your chance to reach new customers with a well designed Facebook ad, of course, varies from industry to industry. The highest CTR is around 15%, which is good!

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Retargeting and targeting via Facebook ads give you an excellent opportunity to get your message through to your chosen audiences. With an average cost per click (CPC) for Facebook ads across all industries is $1.72, it is worthwhile!