Converting Leads into Customers Using Facebook Ad Retargeting
When Facebook first hit the scene, it was designed as a platform for virtual connections. Most of us used this social network to upload photos and talk to our friends – not to discover new brands or purchase products. But oh, how things have changed! These days, Facebook is one of the most popular social media platforms where consumers and businesses connect – mainly through Facebook retargeting ads.
Businesses use Facebook advertising across nearly every industry. And this is for a good reason, considering that most Facebook ads will convert more than 25% of people who click on their links.
Further, many consumers are actively using Facebook to discover brands, products, and especially promotions. Studies show that 54% of social media users have used sites like Facebook solely to research products. Plus, 24% have responded to a sponsored post or ad on Facebook.
However, it takes several impressions before a customer remembers a company name or specific item. Most marketers agree that it takes between five to seven – but considering that customers see thousands of digital ads every day, this number could be far higher.
This is where Facebook retargeting ads come in.
What are Facebook Retargeting Ads?
Since the odds are low that a consumer will convert to an ad’s first interaction, marketers must re-engage multiple times to complete the sale. Facebook retargeting ads are designed to show chosen audiences similar ads repeatedly to keep the brand fresh in their minds. And according to research from Invespcro, retargeted audiences have a 70% higher conversion rate than first-time targets.
First, let’s break down what Facebook retargeting is and why it works. This ad feature supports the four main categories of the marketing funnel:
Most Facebook ads are focused on the top of the funnel by connecting with new customers to introduce them to the brand. Retargeting drives these consumers through the next steps by re-engaging with customers who may have been considering a purchase but did not follow through.
Retargeted ads are also essential for getting consumers past the decision phase by incentivizing conversions. And finally, Facebook retargeted ads can be used in the final stage, which is retention. This type of marketing is not just for first-time buyers – audiences can be retargeted repeatedly to build brand loyalty.
Social media is essential for lead generation for both B2B and B2C because it is a platform that extends across virtually every market.
But the real question is: How does Facebook retargeting work?
We all know that Facebook has an abundance of data collected from every single user. This includes basic information that we gladly hand over, such as our age, location, marital status, and employment. But it also gathers behavioral data, which is incredibly useful for marketing purposes. Some of this information includes:
- Brands we’ve interacted with in the past
- Stores we shop at
- Items and products that interest us
- How frequently we shop online
- What motivates purchases (promotions, sales, impulse buys)
Marketers can use this data to target specific audiences who meet set criteria that signal their potential interest in the brand or product. Then, if they keep meeting the conditions (such as clicking on the link, following the brand’s page, or interacting with similar products), they will stay retargeted with numerous ads.
Now, let’s dive into how marketers can effectively use Facebook’s retargeting ad system to convert leads.
Start by Creating Custom Audience Sources
Your first step is to choose which types of customers you want to retarget. You can access this feature from the business manager’s Facebook Ad log-in. There are several sources to choose from.
Your Sources include leads from your website, customer lists, app activity, or even offline activity. For example, if you have a database of email addresses from a live or virtual event or website visitors, this can be a great starting point.
You can also use Facebook’s sources, derived from lead forms, Instagram accounts, Facebook page followers, or other listings.
It is wise to create several different audiences so you can customize ad experiences based on their behaviors.
For instance, customers who have visited your website or app are already well aware of the brand. They may be more motivated to purchase with promotions or deals. Audiences from Facebook sources may not even be in the awareness stage, so you’ll need to get them familiar with your products.
You can also create audience segments based on even more specific criteria. This could be engagement levels with your videos, other ads, or even people who like similar brands. The more detailed you get, the smaller your audience will be. Try to keep your groups no smaller than 1,000 people; otherwise, you may be getting a bit too niche.
Remember also to exclude customers within these groups. For instance, you will want to exclude customers who have already shown more interest. For example, you could exclude audiences who have filled out an online form on your website or have created an account.
Install Facebook Pixel
A great tool to install for data collection is Facebook Pixel.
Facebook Pixel is available through the Facebook Ads or Business Manager portal, and it will start to track your website activities. Pixel will then apply this collected data to your Facebook ad campaigns so you can retarget audiences easily.
To integrate this tool on your website, you will need to manually enter your website’s code or use an integration/tag manager to set it up. Tag Managers are Facebook marketing partners, such as Magento, Shopify, Wix, WooCommerce, Squarespace, and WordPress. Once your website is connected to your Pixel account, it will start tracking your visitors for Facebook ad purposes.
You can select the types of “events” that Pixel tracks, such as: Add to Cart, Complete Registration, Initiate Checkout, Search, Subscribe, View Content, Find Location, or Start Trial. Facebook Pixel will generate a line of code which must then be inserted into your web page to start the tracking process.
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Focus on Eye-Catching Visuals
Customers are inundated with thousands of FB ads every day – so you need to catch their attention quickly. However, the chances are that a text-heavy post will be skimmed over and ignored, so you need to utilize visual elements.
There are several styles for Facebook ads:
Single image or video
The style of ad you choose has to make sense with the goal of the campaign. For example, if you are trying to build awareness about your brand, a singular video may be the best option. Plus, video Facebook ads have the lowest CPC (cost-per-click) thanks to their high engagement return. However, if you are retargeting audiences interested in specific products, carousels or collections could be best.
Another exciting type to try is the instant experience Facebook ad. This is designed for mobile users and will create an app-like experience directly through the ad. This drives consumers directly to a checkout page for quick conversions.
It should be noted that to create carousel or collection ads, you will need to set up dynamic product features. The first step is to upload your product catalog to your Business Manager portal.
Product catalogs are a perfect opportunity for personalization for retargeted audiences. You can use previous consumer data to select specific products to be displayed. For example, say that a customer previously browsed women’s dresses. The retargeted ad would show similar styles and heels, jewelry, and other related items.
Find a Psychological Trigger
Sales and marketing are all about convincing the customer towards a specific action. Most effective advertisements provoke emotions to get their audience to pay attention or make a decision. Emotional marketing typically triggers happiness, sadness, trust, anger, fear, or even disgust.
Fear is one of the most common psychological triggers in marketing. One of the best ways to get customers to engage is to create the fear that they will never have the opportunity again–and must act now. Facebook retargeted ads can be the perfect avenue for this by promoting limited-time offers or promotions.
Take this campaign from Tieks as a perfect example. Their ad is promoting their spring-time collection and emphasizes the fact that supply is running low. Phrases like “final restock”, “while supplies last”, and “ending soon” all intentionally create the fear that time is running out.
Facebook retargeting ads can help to intensify these emotional triggers building upon each other. For example, say that you want to establish the emotion of trust between your brand and your customers. Seeing several examples of social proof, customer testimonials, or influencer endorsements through Facebook ads can generate this emotion.
Use Retargeting Ads as Incentives
Another way to urge audiences towards action is to create exclusive offers through Facebook retargeted ads. Again, you can set the criteria so that specific customer segments see these types of ads. For instance, a discount code could be a great way to get customers who have abandoned carts in part to convert finally.
Another popular Facebook retargeting ad campaign is to offer limited-time deals like free samples or free trials. This incentivizes audiences to act quickly to take advantage of an exclusive offer and can help to nurture them towards becoming loyal repeat customers.
Setup Sequenced Retarget Ads
Again, most customers will not convert with the first, second, or even fifth ad impression. You have to keep interacting before they will make a move. Sequencing ads set up multiple-step campaigns and are great for nurturing customers again and again.
You will want to create campaigns that will run for a set period and a specific goal. For this example, let’s say your campaign runs for 20 days, and you’re trying to re-engage with customers who may have forgotten about you. So, your sequencing campaign should ideally include people who have visited your website within the past 10 days, but perhaps not people who have visited in the last two.
Next, you will want to create various phases of the campaign. For example, your first few days could be focused on promoting a specific item and offering a discount of 10%. Days 5-12 may then re-engage customers who saw the first ad but did not convert. They will see ads for a greater discount, perhaps 15% this time.
The final eight days will retarget the remaining consumers with a “Last Chance” offer.
Include Lookalike Audiences
Coming up with audience segments is not always easy, especially if you try to cater to large segments. Thankfully, Facebook will generate lookalike audiences based on past criteria to help you reach other audiences you may not have thought about. In addition, Facebook will automatically include new customers who nearly meet the criteria and could be relevant.
All you need to do is head to the Audience Manager tab and select “Create Audience” then “Lookalike Audience.” You will then select your Lookalike Source by uploading a custom audience list that you have used in the past.
You can include certain criteria, such as location or percentage of lookalikes you want to be included in your audience. Typically, it’s best to keep your percentage low since this audience will not be a perfect match.
Integrate Your Other Marketing Tools
You don’t have to manually insert data or guess based on what you know about your audience currently. Many of the most popular marketing programs can be synced to your Facebook Ad Manager, including:
- Google Ads
- Adobe Campaign
- Constant Contact
You might need to use a separate tool to make this easier. AdEspresso by Hootsuite is one such tool, other options include TapClicks and Funnel.io. In addition, each system can be set up to automatically share data you’ve collected from other sources into Facebook to build custom audiences.
This is critical for retargeting because it helps you narrow down your audience into groups you know have been targeted before. You can also create specific groups based on this data, such as:
- Customers on email lists
- Audiences who have not purchased in over a year
- Consumers who created online accounts
- Customers your sales team has contacted in the past
Many of these tools also provide analysis and insight reports to provide you with even better data on your ad performance. This gives you the information you need to improve your campaigns and retargeting criteria.
Manage Retargeted Ad Frequency
Although Facebook retargeting can be extremely effective, it is important to keep an eye on the frequency and the length of your campaigns. Consumers will easily get annoyed with seeing the same ad over and over again if they aren’t interested. This could even propel them to set up an ad blocker or report your business on Facebook.
You can adjust the frequency of your ads through Facebook Ads Manager. According to a study conducted by AdEspresso, the optimal ad frequency rate is four impressions – this correlates to the highest number of clicks with the lowest cost. But, of course, anything above starts to cut into profit margins.
Over to You
Nurturing and converting leads has never been an easy process – it requires a lot of work and strategy. Thankfully, Facebook retargeting ads make this process much easier if you know how to use them correctly.
There are tons of different strategies and features within this tool. However, the best tip is to rely on data for every ad. Use it to create audiences, run campaigns, and set up ad sequences. This is by far the best way to effectively nurture leads – because you will reach audiences that are already engaged and more likely to convert.