How to Maximize your ROAS
By now I assume you’ve got the basics covered for your eCommerce Store. It’s primed and ready to go with a properly installed Facebook Pixel, Schema is all set up, and you’ve got custom audiences firing to segment your audience and deliver targeted ads. If not, you should review the article where I cover the 3 Pillars to Facebook Ad Campaign success (you can find it here).
With that said… in this segment, I want to dive a little deeper into more advanced tactics that you can implement today to optimize your eCommerce Facebook Ad Campaigns, and maximize your Return on Ad Spend (ROAS).
Here’s the main topics we’ll cover:
- Email Updates
- Maximizing customer appreciation with thank-you video
- High Value Lookalike Audiences
- Maximizing ROAS with Advanced Retargeting
TACTIC #1 – Email Updates
Improving the customer experience has always been a key tenant to long-term success with any store; however, with Facebook’s ongoing algorithm updates, it’s becoming even more important, as Facebook is now placing even more importance on the overall experience of shopping on your online store.
Things like page load speed, clear privacy policies/terms of service, and positive reviews are now being factored into the FB’s ad platform to an even greater extent.
One of the easiest ways to improve the customer experience is through the communication of key information. We’re not talking about sending a barrage of daily deals (not that this doesn’t work to some degree), but about relaying information important to a customer. In this case – a purchase.
One of the biggest fears a customer has when making an online purchase from someone they’ve never bought from is whether or not they are actually going to get their product, and if you’re a legit store. The easiest way to alleviate some this worry, is by communicating with your customer all along the way.
Send an email confirming the purchase. One that lets your customer know that the order has been processed, and is waiting to be shipped. Then send another with shipping information and the tracking number.
If you’ve ever bought something from Amazon, you’ve noticed that these are standard emails from their platform. In fact, Amazon deems them to be so important to customer satisfaction that all customers receiving items shipped by Amazon’s 3rd party sellers receive them automatically as well. This isn’t something the Sellers even need to worry about. You can, and should, do the same thing from your stores too
TACTIC #2 – Maximizing Customer Value w/ Thank-You Video
Tactic #2 kind of goes along with Tactic #1, and has to do with further enhancing the overall customer experience on shopping with your store.
Rounding out the customer journey with a personalized Thank-you Video after purchase does wonders for improving the LTV of customers, and increases likelihood of securing a positive review. Here, all you need to do is get on camera (any new smartphone nowadays is good enough) and record a video thanking your customer for buying from you. And then you create an Ad that serves this up to purchasers 3 days after they bought. That’s it.
Simple but powerful. You’re not encouraging them to buy something here, just thanking them for having already purchased. You’re increasing customer loyalty, and improving the chances of getting them to come back again in 30, 60, or 90 days.
TACTIC #3 – Creating High Value Lookalike Audiences
By now you should be creating Lookalike audiences for your Top of Funnel campaigns based off your customer lists. If you’re not, then you should definitely be using Facebook’s custom audiences feature to create a Lookalike audience that represents your current customer base.
These standard Lookalike audiences are great for initial targeting, but once you gain more and more customers, you’re able to take them a step further.
When creating custom audiences, Facebook gives you the ability to further refine (add parameters to) your Lookalike audiences. There are numerous ways to leverage these audiences, but some examples of how to create Lookalike Audiences based off your highest value clients is to create a seed audience:
1. People who have purchased 2x+ in the last 60 days
2. Those whose initial purchase value is greater than 30% of your AOV (average order value)
3. Time spent on site in top 95%
Furthermore, FB also has the ability to create LTV (Lifetime Value) audiences. This enables you to further distinguish your highest value customers from your lowest value ones.
TACTIC #4 – Maximizing ROAS with Advanced Retargeting
By now you should have heard of Facebook’s Dynamic Product Ads (DPA), and hopefully you’re utilizing them in your ad campaigns. If you’re not, you’re missing out on one of the most powerful tools FB gives eComm stores… so you should start using these immediately!
Anyway, you can enhance you retargeting stack with specific ads (whether video or image) to run alongside your DPAs. Some examples of retargeting ads that are worth running:
1. Ads targeting people who have entered payment information but haven’t finished the purchase
2. Ads targeting people who have added products to your shopping cart in the last couple days
3. Ads targeting people who have viewed 3+ products in the last 3 days, but haven’t converted
Basically – you’re trying to target people who have shown really strong intent, but haven’t gone all the way to a purchase. You’re essentially just nurturing them to the finish line.
So there you have it – 4 advanced tactics that you can employ in your eCommerce Facebook Ad Campaigns today to maximize your Return on Ad Spend.