To acquire customers, you need to have a deep understanding of your audience and be flexible. Customer acquisition cost (CAC) refers to the cost of introducing a user into the sales funnel and converting it from intention to actual purchase. This cost is calculated by combining all the expenses of acquiring customers (advertising , marketing, etc.) divided by the number of new customers. So, let’s learn about the techniques on how to reduce the cost of acquiring customers through advertising on Facebook?
1. How to use Facebook to effectively acquire customers?
1. Advanced positioning can help place ads on audiences who are likely to buy.
2. Creative advertising can display ads in a unique and eye-catching way.
3. In-depth indicators can measure advertising performance and adjust strategies accordingly.
2. How to reduce the customer acquisition cost of advertising on Facebook?
1. Redefine the target customer group. In addition to basic information such as demographics, you should also determine who are new customers based on their buying habits. This requires specific analysis of customer groups in order to find a workable definition.
2. Create more efficient similar audiences and use a layered approach. Use Lookalike Audience Targeting to find potential customers who are similar to your core target customers. The success of this strategy depends on the quality of the “seed list” and the accuracy of the scale-up.
3. Stimulate advertising creativity. Short animated videos are a great way to grab your audience’s attention. These videos do not need to be elaborately produced. Slideshow videos or gif animations can also attract people’s attention. At the same time, since many people do not turn on the video audio, subtitles need to be added to the video.
4. Make full use of the media. Use full-screen ads to ensure that advertising messages are fully noticed by users. Make sure your brand is highly recognizable so your audience won’t be confused.
5. Conduct variable testing. Most users have 2-6 active Facebook ads at any time. For effective testing, it is recommended to run only 2-3 ads, try changing one of the elements, and measure the performance difference between the old and new versions.
6. Use dynamic ads to attract potential customers. Dynamic product ads use user intent signals to determine who viewed an ad, which can help find potential customers. At the same time, you can use overlays to add movement and life to your ads and introduce new incentives or discounts to increase click-through rates. When it comes to Facebook advertising, brands need to pay close attention to the frequency of advertising, especially those advertisers that are persistent and powerful. In order to enhance people’s impression of the advertisement, the ad positioning, frequency and display need to be done just right. The recommendation is to place the advertisement 1.5 to 2 times a week.
The above introduces the relevant knowledge on how to reduce the customer acquisition cost of advertising on Facebook. In addition to the above mentioned, managing advertising also requires constant attention to advertising effects, tracking and analyzing statistical data, and understanding Spend and think about the goals achieved. At the same time, you should continue to optimize all aspects of your advertising, such as conversion rate, click-through rate, and cost-per-click, but be careful not to over-optimize.