Episode 26: Order Value-based Targeting on Facebook
Facebook has opened up targeting options based on the size of a user's order on your website - perfect for retention campaigns and lookalikes.
00:01 Stewart Anderson: Welcome back to the Spend $10K a Day Podcast. I'm Stewart Anderson. My buddy Steve Weiss is with me as always. Today we're talking about pretty recent features. Something that most people might not have realized is even there or available for e-commerce, retailers, advertising on Facebook. You can actually target people based on the size of a previous order. So order value-based targeting. Pretty cool feature. Steve, what do you think?
00:28 Steve Weiss: Yeah, this is game-breaking 'cause you used to have to actually export all the customer data from whatever system, whatever whether Shopify or whatever system you're using based on what people have ordered last. Let's say you wanna target all your ads to people who spent $60 or more in your store. You have a specific ad unit. Let's say you wanna reward them, you want to win back campaign or you wanna say... You have one ad where you give away something for free or a bundle just for these demographics of users who spent a lot of money over X amount of dollars in your store. I think it's an awesome feature. We've been using it at one of our e-commerce sites that we work with. They sell T-shirts. They're, I guess a subscription T-shirt company, but they also have multiple SKUs of T-shirts and it's been an incredible win back tool that we've been using to actually win customers back who previously have spent significant order values.
01:22 SA: Yeah, it's pretty cool 'cause you can say, "Hey, I wanna target somebody who spent, placed an order previously that was over $100. Maybe they haven't purchased anything in the last three months. Let's target all those people," or let's say you're launching a new product and you wanna say, "Hey, I wanna target everybody who spent over 50 bucks in an order in the last six months. These are the types of people who, our research has shown, would be a good buyer for this product." It's pretty cool. It's also I mean like just... Similar to the way that time on site targeting added another refinement on top of some of the WCAs available. This is another refinement off of purchased-based data. You can say, "Hey, let's go after the big spenders."
02:03 SW: Exactly, and I think as you continue to grow your story, you'll have a much larger pool of big spenders and I think there's a lot you can do with people who previously spent money in your stores. There's a lot of really cool from an ad creative perspective, I've really personalized an ad experience with a lot of really cool intricate messaging you can use for people who've already previously purchased over a specific order value. So I think it's another tool in your tool shed or what you call your bottom of funnel or your re-engagement campaigns. We always talk about prospecting new customers, new customers and new customers, but this is one of the tools that you can automatically turn on for your bottom of funnel, your re-marketing, your re-engagement, and go beyond just the dynamic product ads. This is something that really an ad unit focused around targeting people who've previously bought your product.
02:52 SA: Yeah, absolutely. I think there's a few specific use cases that I had in mind. It immediately came to me when I found about this feature. One was new product launches. When you're launching a new product, you wanna announce it, "These are the people who I think would be most likely to buy based on past purchaser data." Again, as I've mentioned before, in our refinement off of a purchaser list.
03:12 SW: Like a subscription. Let's say you have a subscription to your product that you're launching. So you sell, AKA bath and body stuff and now you're coming out of a subscription for soap, as an example, like a similar client we're working with. You wanna launch your subscription to your power users and you wanna give them a great deal. So you're gonna target people who have spent over $50 or over $60 plus in your store and you can really... With this new targeting feature, you could just target ads to those people.
03:43 SA: Yeah, definitely. So new product launches. The other one is I think seasonal promos or anything that's like a promo that's based on order size. If you know that there are people out there on your list who have spent large amounts in any giver order, or even let's say they placed two orders over 100 bucks. If you're doing a promo where you get free shipping for any orders over $100 or $20 discount if you spent over 200 bucks. People who have spent large amounts in your store previously, they might be the exact kind of people who are gonna respond really well to that messaging. So these are the two used cases I thought of right off the bat. There's probably a couple more, but those are the things that I think really makes sense. It's just off of unique used cases for this.
04:26 SW: Oh totally, and I think as you become more... As this tool becomes more widely used, we're gonna come up with so many different used cases of how to leverage new product launches obviously. Even just win back campaigns, you wanna reward your best customers with different products, with different giveaways. I just think that it's a really simplistic tool now of leveraging average order value targeting.
04:50 SA: Yeah, yeah. An AOV-based targeting. I'm kinda thinking about why we didn't think of this before, like a good feature for Facebook. This is perfect. I think that the next iteration of this hopefully and this is a little bit tougher to do. But, let's say I would love to be able to target everybody who has spent over the last six months upwards of let's say $500 total in my store across any number of orders. Looks like Facebook doesn't have that capability right now. If they build that through, I think that's a huge one for advertisers and I think both these types of audiences, both the AOV targeting and LTV targeting, perfect for lookalikes too.
05:29 SW: Awesome. Feeding that data right back into Facebook and allowing Facebook to build off that is amazing. It's the best used cases for leveraging Facebook's audience algorithm. So I would say test this out right away. Facebook released it, I think it was about a couple of months ago now. We just started talking about it, but I would test this out almost immediately. You have nothing to lose. Obviously you're not gonna spend a ton of money on this because most people don't have giant audiences, the people who spend... Maybe you do, but most of the time this is a very small customer-focused audience, so, test it out. We've already seen some really good results in the bottom of the funnel, and I'd love to share that with you, and have you guys test it as well.
06:11 SA: Yeah, absolutely. We're looking forward to seeing what people can do. We'll be coming back soon with more content on the podcast. For today's episode, I'm Stewart Anderson, and with me as always, my good friend, Steve Weiss. We will see you next time.