6 Hacks to Triple Your ROI with Facebook Dynamic Ads
Facebook dynamic ads are an effective solution for retargeting your customers. They allow you to customize your promotions and market the most relevant products to specific customers. So based on how well you manage to execute these promotions, Facebook dynamic ads can significantly drive sales. And more sales would result in higher returns on investment. Here are some of the best practices to help you yield higher ROI using Facebook dynamic ads:
#1: Retarget Customers with Abandoned Carts
Between September 2016 and March 2017, retailers experienced an average shopping cart abandonment of 77% according to Listrak. So it’s likely that you too would encounter several customers who leave items abandoned in their carts. But that doesn’t mean you have to lose those customers altogether.
Facebook dynamic ads enable you to retarget those customers and encourage them to complete the purchase. You can customize your ad to display the items a customer has abandoned in their cart along with other relevant items. Maybe they had forgotten about the items in their cart or they’re contemplating whether or not to buy the product/s. Displaying these ads could remind them or entice them to go through with the purchase.
#2: Display User-Generated Content to Boost Trust
It’s popular knowledge that reviews help in winning the trust of shoppers. And you can even implement them in your ads to instantly boost your audience’s trust. For this, you can use Yotpo’s dynamic ads feature to include user reviews in your Facebook dynamic ads. Target relevant users with ads showcasing some of your top-rated items, which they might be interested in
This tip will not only drive more click-throughs but also reduce your cost per acquisition, which translates to higher ROI. In fact, a Facebook study found that including reviews to dynamic ads resulted in a four times increase in click-through rate with a 50% drop in cost per acquisition.
#3: Retarget Your Top Customers
Customers who frequently buy from you are highly likely to make more purchases in the future. In fact, you have about 60-70% chance of selling to an existing customer and only about 5-20% of converting a new customer. You could make the most of Facebook dynamic ads to retarget some of your top customers and encourage repeat purchases. Try using the data about their past purchases to select the items that they’re likely to be interested in and then promote these items using dynamic ads on Facebook.
Let’s say a customer has recently purchased some t-shirts from your store. You can use the Facebook dynamic ads to promote similar t-shirts that you’ve added to the collection. Or you could promote t-shirts from the same brand as the shirt that they had bought.
#4: Retarget Unconverted Shoppers
Your original ads may have attracted a few shoppers who visit your site but fail to buy anything. Or some shoppers may have landed on your site through organic search. They browse through your site, viewed a few items, but end up without a purchase. Since these shoppers have already checked out your site, there’s a possibility you could convert them if you know how to target them properly.
Maybe the customer was searching for fashion jewelry in your store. They browsed through a few but end up not buying anything. You could use Facebook dynamic ads to promote some of the items they had viewed or items similar to what they had viewed. Or let’s say they were looking for a new blender without buying one. You could retarget them and display other makes or models of blenders in the ad.
#5: Promote Products that Complement Recent Purchases
Cross-selling has always been an effective method of driving conversions. It’s not always possible to know what customers need. But you can make the most of their purchase history data to find out what they could possibly need. If a customer has recently purchased something, you could use Facebook dynamic ads to promote items that complement the purchased product.
This is somewhat like recommending complementary products when shoppers are viewing a certain item in your store. In those cases, there’s no certainty that the shoppers need the products you’re recommending because they haven’t yet completed the purchase. But with dynamic ads, you know for sure that the customer has recently purchased something. So there’s a huge possibility that they need the products you’re recommending.
For example, a customer has recently purchased a laptop along with some peripherals such as a mouse and a pair of headphones. In this case, you can no longer recommend the peripherals they have already bought. But you can recommend items like laptop sleeves or laptop cleaning kits. The customer might not have even realized that they needed those items before you suggested them.
#6: Promote Products with Higher Margins
If you want to boost your ROI, you should invest your money on promoting products with higher margins. In other words, you shouldn’t waste your precious advertising budget to promote inexpensive items in your store. You can filter the price to exclude items that have a low order value. If possible, try to exclude items that do not look good in the ad. The goal is to make the ad as inviting as possible so carefully handpick attractive products with high margins.
You now have a better understanding of what you need to do in order to boost your ROI through Facebook dynamic ads. Although the tips mainly focus on consumer goods, you can also use dynamic ads for promoting services and non-physical products. Which of these tips was your favorite? Let us know in the comments below.