Not all your clients are the same, and sometimes this can be important. With PixelYourSite Pro you can isolate the most valuable customers by using the lifetime_value Purchase Event parameter.
The process described here is different (but inspired) from the Value-Based Lookalikes audiences based on customers files that Facebook is offering. You can use these two strategies together
What’s PixelYourSite lifetime_value parameter
It’s a Purchase Event parameter that pulls the total value of all past transactions for one client. How does it work? Every time when a new purchase is completed, PixelYourSite will look if the client is an existing one. If this is the case, it will calculate all the previous transactions value plus the new one and it will use the result the lifetime_value parameter. If it’s a new client with no purchase history, only the current transaction will be taken into consideration.
How to configure the lifetime_value parameter on WooCommerce and Easy Digital Downloads
Depending on your e-commerce solution, the lifetime_value parameter settings will be found under the PixelYourSite Pro WooCommerce or EDD tabs.
You have the option to turn ON or OFF this parameter, and to configure what order status to be included.
For WooCommerce are included by default: pending payment, processing, on hold and completed.
For Easy Digital Downloads only completed orders are included by default.
How to use the lifetime_value parameter to reach valuable potential clients
The best strategy you can deploy is to discover new potential clients with very similar profiles to your best existing ones. Meaning, your final goal is to create Lookalike Audiences based on the highest lifetime value clients. In order to do so, you will need a two-step strategy.
1. Make a Custom Audience based on lifetime_value parameter
That’s your first step. Decide what lifetime value you want to use so that you identify your best customers. This can depend on a variety of factors specific to any business. Make sure is neither too low or way too high.
This audience will use Custom Combination and will be based on the Purchase Event.
From your Facebook admin area open Audiences, click on Create Audience and select Custom Audience.
Click on Website Traffic and select the pixel you want to use (if you have more than one). Select the Purchase event and click on the “Refined by” link (this is the new Custom Audiences layout). Select “URL/Parameter” and select the Domain parameter. Insert your domain name as a value (this step is requered it your pixel runs on more than one site).
Click “And also” and select the “lifetime_value” parameter “is greater than or equal to” your desired value.
Give your audience a relevant name and save it.
Every time one of your existing clients’ total transactions value reaches the minimum you set up, him or she will be automatically added to this custom audience. It might take a while for this audience to fill up, depending on your business volume.
2. Make a Lookalike Audience
Now that you have your most valuable clients Custom Audience, you will need to create a Lookalike Audience based on it.
A Lookalike Audience lets you find new people on Facebook who are similar to your existing audiences
Clik on “Create Audience” and select “Lookalike Audience”. As the “Source”, use your previously create Lifetime Value Custom Audience.
Define the location for this new Lookalike. You can use a specific country, a list of countries (separated by a comma), or Regions (this is a new and powerful feature).
Select the Audience Size (1 to 10% of the total population of the locations you’ve selected) and click on “Create Audience”.
Facebook will now try to populate this new Lookalike with people from the specified locations that look similar to your best clients (your Lifetime Value Custom Audience). Since your Custom Audience is dynamic, with new clients beeing added automatically once they reach the minimum lifetime value, the Lookalike based on it will adjust and improve in time.
How to use the Auto-Updated Lifetime-Value Lookalike Audience
Remember that this is a cold audience. They don’t know you, so you must find a way to introduce yourself first.
1. Use additional interest based filters
When you target this Lookalike with your ads, you might want to use some relevant interest filters. For example, we use keywords like WordPress, WooCommerce and Facebook ads. This will dramatically decrease the number of people who are going to see the ads, but it will make them more relevant and interesting. I suggest you experiment with some keywords, but also with no filters at all.
2. Use the funnel approach
Don’t simply spend your budget on putting an offer in front of people that never heard of you, because chances are they will just ignore you. Do it differently, with a funnel approach. Nurture your prospects into knowing you, appreciate you and then buying into your offer.
This is a possible strategy that you can deploy:
- Target the Lookalike with ads promoting some of your most useful articles
- Retarget the visitors of those articles with a free lead magnet – something with a true value
- Retarget the lead magnet subscribers with your offer. You can do this with ads, or you can do it with your newsletter. I suggest you use both.
The auto-updated Lifetime-Value Lookalike Audience strategy can help you grow your business with reasonable costs and is something I strongly encourage you to try and test. As always, this in not the only possible approach. You can also play with the number of purchases a client has made, with key product categories or anything else that is meaningful for your particular business situation. As you probably know, imagination (and experience) are the only limits when it comes to online marketing.
I am keen to try this, thank you…. but it doesn’t work for me. When I select Website Traffic I don’t get the options you mention “Select the Purchase event and click on the “Refined by” link (this is the new Custom Audiences layout).” Any ideas?
I guess you just have to wait a little more for this update.