We can also see that the majority of purchases on this site take place on mobile. Finally, Facebook also shows you the distribution of purchases by age group and gender. I advise you to watch this report at least once because you are very quickly surprised by the results. There is always a gap between what we believe and reality. You can also compare these results from year to year to see if your customer base is changing. Is she getting younger or getting older? If you want to increase your e-commerce revenue through Facebook advertising, take part in my 5-day challenge to transform your advertising !
There is over 2 hours of video showing you exactly how to set up your campaigns to sell continuously. And it’s free. 3) The overall value Do you know the life value (also called overall value) of your customer? As entrepreneurs, we tend to Armenia Email List focus the majority of our efforts on acquiring new customers. Yet existing customers should not be overlooked. Selling to an existing customer costs 6-7 times less than acquiring a new customer. Unfortunately, few advertisers will take this into account when determining the maximum acquisition cost they are willing to pay to acquire a new customer.
The average shopping cart on your site
Generally, the calculation is quickly done for the advertiser … “I’m willing to spend x% of the average shopping cart on my site. ” Over time, competition increases and advertising costs increase. As an advertiser, you must therefore also take into account the true value of a customer over their entire “lifetime” to calculate your target acquisition cost (CPA). Let’s take an example : The average shopping cart on your site is € 50 The lifetime value of a client is 90 € Your CPA goal is $ 18. Normally, if the CPA of an advertising campaign exceeds 18 € over 7 days, you cut the campaign. But, is it really a good decision?
If you keep in mind that any customer averages over $ 90 over their lifetime, you may be able to afford to spend up to $ 25 on some targets, not $ 18. Of course, I’m not saying you have to start doubling your CPA goals. On the other hand, if you increase the budget for your campaigns, your acquisition costs may also increase. Since you know you can spend up to $ 25 to acquire a new customer, all of a sudden you can “afford” to pay more for a new customer in the scaling phase. This gives you an advantage over some of your competitors who will not be able to afford to pay so much to acquire a new customer.
This gives you an advantage over
Now, how do you calculate the life value? You can use this formula … Source: CleverTap In fact, you can also go to Facebook Analytics and analyze these 2 charts. Go to the “Overall value” tab of Facebook Analytics and choose a period of at least 6 months. Select only paid users. For this company in the ready-to-wear sector, I observe that the value of a customer is “only” 41 € the first week (this is the average value of a purchase for a given week). 5 months later, it exceeds 100 €! It’s more than double. When you scroll down, you should also see a cohort analysis. It shows you the overall value of each group of customers according to the week they bought.