My head-scratcher this week is about…

How (many) companies sacrifice a lot of their margin to acquire customers that will never buy again / at full price.  

Here’s what usually happens at Black Friday:

Brands cut down their prices to attract new customers =>

Ads are more expensive thanks to a higher demand =>

Brands are spending more to acquire customers =>

Customers get better deals => 

The company acquires a lot of bargain hunters that will never come back. 

Yes, that means the company will pay more to acquire customers that will value less.

The ratio that will show how well balanced are the acquisition efforts by the future revenue is called CLV:CAC.

Ideally, if you measure CLV by the net margin, a good ratio would be 3:1.

However, on Black Friday, that’s not happening for eCommerce companies that are playing by the (old, boring, and established) rules.

And that’s why my suggestion is to…

Haha

Not really to cheat, but to play your cards better.

Meaning, what if you can start earlier?

And if you could address only valuable customers?

And if you could know in advance what the people are looking to buy from your product selection?

And if you could build lookalike audiences based ONLY on your most valuable customers?

Well, that’s what I am actually talking about. 

To emphasize this visually, I have invested 15 minutes in Canva and stole a template about eCommerce with misleading icons.

The steps:

  1. Use RFM segmentation to build the list with your best customers based on recency, frequency, and monetary value. 

If you (still) don’t know how RFM segmentation works and why the eCommerce world lovers it, check our RFM guide 

  1. Build a lookalike audience based on the customers with the highest CLV – Soulmates, Lovers, Ex-Lovers and New Passions 
  2. Here’s the trick: build the audiences and address those customers on Facebook (we have made your life easier – Reveal does this automatically for any eCommerce) and then…

Tease these customers & prospects to use the wishlist in order to win it. Or to win a $1000 voucher or to get a huge discount. You got the idea.

Propose them a very very simple investment – to just add items they love in the wishlist and give them a large enough incentive to make them act.

In the end, changing behavior is a simple formula. 

How big is the reward – how hard is to get it = action

  1. Understand what the customers are willing to get. Decipher purchase intention early on and adjust your offer accordingly.
  2. Go live with the VIP campaign before Black Friday just for those customers. 
  3. Ship the goods before everyone else. 

Less work on Black Friday, more clarity over what products to promote, better ad costs, more valuable customers. 

TA-DA! 

Let me know how it worked for you.
Or, bookmark this for next year and start earlier if you work at a large and rigid company that’s not open to out-of-the-box ideas. 

Btw, we’re looking for someone to orchestrate our marketing 😉 

That leads me to the next topic of this Newsletter…

How to pump your Facebook ROAS with 6 evergreen campaigns that’s leveraging your existing customers

Yes. That’s old news already.

The update is rolled out and the ROAS is going down. 

Some eCommerce brands are paying even 4X more on their CPAs. 

That means they are struggling to optimize their campaigns, while the FB algo is not that strong anymore thanks to Apple – Facebook fight.  

For them, I have prepared 6 types of campaigns that must be built to improve ROAS under these bad conditions. 

All of them rely on zero and first-party data, as 3rd party data is not there to support marketers anymore. 

  1. Lookalike campaigns

Use the best customers to help the Facebook algorithm find more relevant customers that look like the ones you want 

  1. Onboarding campaigns

Make sure you orchestrate an outstanding welcome campaign for newly acquired customers, on different channels.

  1. Prevention campaigns

Data shows that you need data to understand when is the window of opportunity to trigger prevention campaigns to customers if they don’t act like you want them to

  1. Location-based campaigns

If you have a strong presence in various cities or locations, make sure you adapt your message to delight the locals

  1. Product-informed campaigns

Create strong associations based on the data and then find customers that look like the ones that bought your bestsellers

  1. Win-back campaigns

Find an incentive that works to re-ignite the fire with the long-gone customers.

Do you want to make them happen?
Stay tuned for my next newsletter as I will give you the playbook for these campaigns.

The hidden gem I’ve found for you this week:

Model Me – if you sell fashion, this might be kind of interesting for you:

Next week I’ll be talking about:

  • How to execute these 6 different campaigns 
  • How to achieve better retention and turn customer service from a cost-center to a profit-center