Discover the 4 practical steps that will drastically reduce your CPA on Facebook by following the steps one global brand took. Better understand your customers, put assumptions to bed and guide a new, data-driven marketing strategy.

In the early days of social media and digital marketing, brand marketers experienced enormous growth. However, many of the same brands are now experiencing a plateau or even a decline in the same tactics more recently.

Marketing results have plateaued – why?

There is no one single contributor, but higher advertising costs, algorithms preferring paid content over organic, non-linear customer decision paths, competition, a confusing data landscape and so much more are making it difficult for brands to live up to metrics gone by.

As campaign ROI reduces, marketers are going back to the drawing board, seeking answers to why they are experiencing more and more of the dreaded ‘W’ word – wastage. Brands have evolved to be far more data-centric than ever before and the winner of this evolution is the customer.

Taking the steps to win back marketing dollars

In the case of a global footwear brand, their cost per acquisition on Facebook had been rising year after year, resulting in reduced ROI. The brand became concerned that the reason behind the decline was that they no longer understood their customers, this in part due to lacking the resource and technology to fully analyze their customer data.

The brand’s most urgent needs were to:

  1. Understand existing customers better, to find more high-worth audiences
  2. Activate audiences on paid and owned media

This gap in knowledge was an opportunity for the brand to re-evaluate their existing customer data by updating their martech and re-segmenting to understand who their core customers really were.

By actioning new customer segments discovered through a CDP, the brand saw a reduction of 94% in Facebook acquisition costs. Here’s how they did it:

1. Identify customers with a Single Customer View

By implementing a Single Customer View, the brand was able to identify and get a better understanding of existing customers. Furthermore, overlaying third-party social and household data enabled the brand to learn more about each customer, their location, buying habits, and interests on social media.

Establishing your core marketing technology organized is the foundation to continued success. Check out our Navigating MarTech report which helps you do just that.

2. Add third-party data to enhance personalization

A CDP not only helps you view and access your own data but also to enhance with third-party data. For example, by appending Twitter data to existing records, analysis can reveal common interests between your customers, showing you how groups compare and differ.

Lexer Integrate allows for seamless and simple linking between all social channels, major email platforms like MailChimp, Campaign Monitor, as well as ingesting any data source in raw format from SFTP, AWS and more.

A simple example of using this would be to see if high-value skiwear customers of a snowsports brand, also have surfing interests on social, in order to promote a new surfing line.

Using the same method, our footwear brand discovered two very different high-value customer segments, each with their own similar social interests and demographic attributes. This helped to put previous assumptions to bed. They formed two groups: one urban dwelling – who indexed higher for flat footwear and a larger foot, and one suburban dwelling, petite-footed group indexing higher in heeled footwear.

3. Activate new audiences

Armed with these new segments, the brand activated these audiences on Facebook. They chose influencers who resonated with each group to promote products that were known to be an interest of each group.

For the suburban, petite-footed group, influencers chosen were known to also reflect the same attributes and vice-versa with the urban group.

By understanding the shared interests of these high-value groups, the brand could more confidently differ their messaging, and personalization. It was during this influencer campaign that the cost of acquisition drastically reduced.

Interestingly, the Pareto principle or 80/20 rule was in full force here, with the two niche groups of customers making up a lion’s share of revenue.

Speaking of the Pareto Principle, another brand, Spyder, recently found their high-value customers represented 80% of their revenue and fell into three segments which transformed their strategy. See how that enabled them to grow their database by 85% using Facebook.

Are you looking for segmentation strategies? We are fans of RFM, a classic transactional segmentation technique that can be a great place to begin a segmentation overhaul.

4. Improve your database quality with surveys

Surveys enable you to fill in the blanks about your customers and can be executed in a range of ways that add value to your customer’s experience with your brand. Adding missing emails, For example, letting your customer that this information will help you better personalize communications, and asking them to self-select their interests, will cut down time in trial and error methods.

In this particular case, the footwear brand found that knowing the size of their prospects would allow them to send them size matched ads, from the above-mentioned influencer campaign they knew that this information increased conversion.

By sending out a survey to prospects requesting their shoe size the brand was able to channel this new data directly into their CDP. This knowledge leveled up their ability to better personalize all marketing to their customers and re-engage lapsed customers.

Customers are still priority no. 1

Despite the changes in marketing over the last few years, marketers have learned that truly and genuinely understanding your customers is priority number one. However challenging the starting point may be, a better understanding of customer data leads always leads to an improvement in results and a better customer experience.

In review, the steps to success are:

  1. Establish a single customer view with a CDP
  2. Create high-value segments & activate
  3. Enhance your customer data with surveys and forms

Grow your database and revenue today

Lexer makes data simple, so data rockstars can deliver amazing customer experiences and show-stopping ROI. Our Customer Data Platform brings data together to help you find high-value customers, create customer personas and cost-effectively acquire more of them.

Contact us today, and find out how to level up your Facebook campaigns with smarter data application.


Author profile
Senior Content Lead at Lexer

Rachael is Content Lead for Lexer and loves producing content that helps marketers better understand the latest advancements in customer data & martech.

Rachael has a BA in Film & English Literature, & 14 years experience marketing for global brands. When not busy writing, Rachael can be found walking her giant Golden-Doodle, Buddy around Brooklyn or at Improv classes.

Author profile
VP of Sales at Lexer

Erin McDaniel is VP of Sales for Lexer and loves working with companies to understand their challenges and find better solutions.

Erin has a BA in Communication & over 14 years of experience working with retailers and financial services companies in the data analytics space. She also loves to travel around the world. Ask her about her stay at the Ice Hotel, Quebec!