[Lookalike ]Lifetime Value Customer – Now Scale your business more effectively.

lookalike audience

[Lookalike ]Lifetime Value Customer – Now Scale your business more effectively.

 

Who is your dream customer ?

A question that is often pondered upon by ambitious startup owners like yourself.

The answer to that would be those customers that keep on buying from you and those that take your high end products without a second doubt.

Ideally speaking all customers should be considered equal by any business and in the customer service end of it that’s how it should be as well.

But in terms of business, we all will have our segment of customers that is more valuable to the company than the rest.

These are the customers that fall in the category of “High value” customers based on their Lifetime value.

Only if there was a way by which you could find people similar to your most valuable customers and sell to them as well.

Well look no further, Mark Zuckerberg has answered your prayers.

With the recent lifetime_value parameter update of Business manager rolled out by Facebook this is exactly the kind of power you have now.

Now, What’s lifetime_value parameter ?

 

Not all your customer’s are same

You might have heard about the “ PARETO PRINCIPLE” or the more popular “80-20”  rule as it is called in the business circles.

It tells us that “ 80% of our business comes from 20% of our clients “

And this comes into play more when you are taking your business forward.

This is where Lifetime_value parameter can help you out.

This is the key to identifying those 20% clients who will give you 80% of your revenue.

It is basically a Purchase event parameter that fires whenever a purchase is made by a customer on your website or convers as a lead.

How it differs from the normal purchase event parameters is that takes into consideration the total value of all transactions done by any particular client over time.

This means that we will be having the aggregate value of all the transactions that they have done and it helps us in judging if the customer falls into category of our priority clients.


How does it work ?

The value of all products will already be in the system as part of the pixel installation on the website.

Every time a new purchase is made the Pixel will verify  if it is an existing customer or not ?

If so, it will add the value of all previous transactions made plus the current one to the particular customer.

If it’s a new customer, it will count just the present transaction.

Thus the total value of all transactions made by any particular customer is kept on the record.

Depending on a value that’s considered high enough for your business to consider the customer as a priority, we can set the parameter to track customers who buy for that value and above.

life-time-value-parameter-1

If you take a look at the pixel expanded image above, you can see in the lifetime_value  about the value of transactions conducted by the customer so far.

This is the value which will help us in segmenting your customers.

 

How  is it beneficial to your startup ?

This features allows you to create a custom audience of your best customers.

Yes, a list of people who are more valuable to you than the others.

This allows you the ability to re target them with exclusive offers to ensure that they stay loyal and continue to buy from you and this maximising your profits.

But that’s thinking small, the real end game is LOOKALIKE AUDIENCE .

Yes, as literal as it sounds. Facebook’s LOOKALIKE AUDIENCE  feature allows you to find similar people to a particular audience after a analysing your existing audience.  

Imagine an audience at your disposal to target- an audience much similar to the highest spending customers on your product.

Now that’s what I meant when I mentioned Mark has answered your prayers.

How Do I set This up ?

It is in fact a two step process.

  1. Create custom audience of Highest Lifetime Value CustomersThe first step is to identify the lifetime_value parameter you want to use to create custom audience .This can depend on the nature of the business as well as the product.

    Once you decide the parameter make sure it’s not set too high or too low.

    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.

 

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 required 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 for you to identify later and save it.

custom-lifetime-60

 

Every Time a customer of yours meets this minimum value criteria, they are automatically added to the “HIGH VALUE “ custom audience.

Keep in mind that this audience will take a longer time to fill up, as all good things do.

 

 

2. Make a Lookalike Audience

Now that you have your most valuable clients Custom Audience, the end game like I mentioned before is to create the Lookalike audience out of it.

A Lookalike Audience lets you find new people on Facebook who are similar to your existing audiences

Click on “Create Audience” and select “Lookalike Audience”. As the “Source”, use your previously create Lifetime Value Custom Audience.

Define the location you want this audience to be from.

It is an important step most marketers ignore.

Understand which regions have been favouring your product and create the audience accordingly.

Select the Audience Size (1 to 10% of the total population of the locations you’ve selected) and click on “Create Audience”.

lookalike-lifetime-60

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 the audience we create are dynamic, it allows you certain freedom from updating.

Yes, with each update or new entry into the original custom audience, your lookalike will also modify accordingly.

 

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.

Just because they are similar to your best customer’s doesn’t mean they are going to buy your products blindly.

As in any field of marketing, you got to nurture them slowly.

1. Use additional interest based filters

When you target this Lookalike with your ads.
In your ad set’s you have options to do detailed targeting.

You might want to use relevant keywords along with the lookalike audience.

Yes, the size of your audience will come down significantly but the important thing is, the audience will be much more qualified.

Keep split testing between both to get the best results.

 

 

  1. Use the funnel approach

Funnel’s are game changers in marketing your startup.

Instead of directly throwing money at your lookalike audience and hoping to get few purchases, you can deploy funnels to filter out better audience like we do with ours.

This is a one of the strategies that we use in our funnels that you can use:

  • Target the Lookalike with ads promoting some of your most useful articles or content they would be interested in.
  • Retarget the visitors of those articles with a free lead magnet – something with a true value that will engage them even more into your product and startup.
  • 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 is the latest and most powerful weapon at your disposal.

Use it to see your business grow leaps and bounds .

But it isn’t restricted to this though , you can use the number of times a client made purchase, different product categories or basically anything related to your business in a similar fashion.

When it comes to Digital Marketing and Facebook advertising , you are only restricted by your creativity and imagination