Lookalike Audience Targeting: How to Boost Revenue
Lookalike Audience: Let’s learn how to use Facebook to target ideal customers!
Welcome back to the eCommerce forum!
A lookalike audience is a group of people on Facebook who resemble customers that companies target. These audiences are desirable because they’re likely to become interested in the companies’ services. Furthermore, companies can target an audience based on people who visit their website or people who like their page.
Lookalike targeting enables companies to use first part data–like customer lists, remarketing lists, etc. It can also include data that is gathered on:
- – website analytics platforms
- – CRM systems
- – business analysis tools.
This data is then used as a seed audience to find people with similar traits and behaviors.
What Kind of Seed Audience Should You Choose?
A company’s seed audience list should stem from ideal audiences. An ideal consumer is anyone who drives revenue. For example, a consumer who buys a companies product is more preferable than a consumer who only gets a newsletter.
How to Build a Lookalike Audience
You have to create smart segments in order to build an effective lookalike audience. Utilize your user data to make groups with specific traits. In this way, you can be more specific with your messaging. Finally, you should divide users according to:
- – average order value (AOV)
- – product category
- – lifetime
Arrange your audience according to how much they resemble your seed audience. More specifically, use a scale from 1% to 10% to group your audience. 1% audiences should have the closest similarities, and 10 % should have the least. Don’t forget, the 10% audience is still very valuable because it has the biggest pool. Finally, set up your campaign by building ads for each segment.
Once you set up your campaign, you need to customize the experience for each segment. For example, you should show more expensive products for an audience with a high AOV. You should also show less expensive products for an audience with a low AOV.
Lookalike audience targeting is a great way to reach new customers. If customers are a company’s biggest asset, they should be utilized in all ways possible.
