LoyaltyLion asks Blend Commerce: How to use Facebook ads to increase customer retention

Navigating the Facebook ads landscape is tricky. It can feel like an essential factor for success to ecommerce brands. But with everyone pouring their pennies into Facebook ads, you need to find value outside of simple customer acquisition. 

We caught up with Adam Pearce, CEO of the Shopify Expert agency Blend Commerce, to ask him eight questions that explore how you can use Facebook ads to retain your most loved customers.  

1. Why is customer retention important for high growth Shopify stores?

Key points

High-growth stores can fall into the trap of looking at acquiring new customers when they could be harnessing their existing ones. 

By building relationships with your existing customers, you’ll see improvements to your bottom line. Your brand’s reputation will also benefit because these customers will tell others about you.

“To grow a store for the long term, retention is what you need to focus on”

2. How can you use LoyaltyLion data to create custom audiences for Facebook Ads

Key points

One of the most interesting things about LoyaltyLion is the customer insights it generates. 

Approach 1

You can use LoyaltyLion data to understand the shopping habits of loyalty program members and use this information to encourage new customers to enroll. Start by exporting the data from LoyaltyLion as a CSV file and then use it to create custom Facebook audiences

If you have existing customers who aren’t part of your program, this data can be used to create personalized ads that encourage them to enroll. 

First, build lookalike audiences. This is a group of prospective customers that share similar traits with your current loyalty program members. You can then use these audiences in your Facebook ads to target new shoppers who are more likely to engage with your brand.

Approach 2

If you have a tiered-based loyalty program, use LoyaltyLion data to run personalized Facebook ads for customers who are close to moving up your program.

These could tease the exclusive benefits they’ll get when they move into a higher tier – encouraging them to return and spend.

“For the smart Shopify merchants out there who are growing rapidly, I really urge you to look at LoyaltyLion data – or work with your agency – to understand how you can use it better.”

3. Why do personalized ads help with retention and sales?

Key points

Look at your LoyaltyLion and Google Analytics data to personalize your ongoing communications with your existing customers. 

You could look at the British city or American state your customers are from and then run geographically tailored ads. Try adding the city name, a famous food or a popular saying to really localize your copy. 

You don’t need a crazy algorithm to run personalized ads. Just start with the basics; gender, location, and age. These ads are always going to perform better than generic ones.

“Personalization is an important, but not a very tricky thing to do. You just need the right data.”

4. What are your top tips on using LoyaltyLion, Klaviyo and Facebook Ads as part of the sales funnel? 

Key points

A strength of LoyaltyLion is its integrations with other Shopify apps. By stitching multiple apps together you can create a sales machine that drives both conversions and retention. 

It’s easy to think that your customers will know that they have loyalty points in their accounts. But, often, customers will sign up and remain unaware of their points balance. 

With LoyaltyLion’s Klaviyo integration, you can add one line of code to the top of your emails that tells each customer their points balance.  Now every email encourages customers to return and redeem their points. 

You could then export your email flows and plug them into Facebook – giving you a three-pronged marketing approach. If the Klaviyo email doesn’t convert, you can target the same customers with similar messaging on Facebook.

“Using those three tools together, you can create a sophisticated way of acquiring new customers and retaining existing ones with merely a few clicks.”

5. Why is tone of voice important for Facebook Ads? 

Key points

Every time a customer interacts with you, this builds their relationship with your brand. You need to make sure you maintain consistency when communicating with customers so they’re not left confused about their relationship with your store.

To maintain consistency, create tone of voice and editorial guidelines and share them with your team. This should include small details down to how you greet customers.

Then, based on these guidelines tweak your tone per channel, including your Facebook ads. Make sure your key identity is still the main focus though. If a customer is acquired through one ad but is then retargeted by one with a different feel, they’re going to be confused about who you are.

“The tone of your Facebook ads are not only important for the acquisition moment, but also for the other ads you use to engage customers along the way and after their purchase as well.”

6. How can you use blog content within Facebook Ads? 

Key points

When you’re launching a new business, it’s easy to go for the hard sales approach. But to get initial sign-ups, blog content is more effective. 

For example, if you have a new sneaker coming to market, write a blog post about the five key running tips for 2020. You’re going in with something non-salesy and the customer knows they’ll get value from the content. 

Then,  when a shopper clicks on the blog, you’ll get a pixel fire to your Facebook that you can use to remarket to them. You can then use tools like Google Analytics and Hotjar to see what the customer engages with next. This way, you’ll be able to gather more information about them.

7. Why are double point events, and high-value clickable content (like blogs) important for Facebook Ads? 

Key points

Double point events and clickable content give customers something they aren’t expecting. However, there’s a misconception that a double point event will be exciting enough to bring a customer back. This isn’t always the case. Shoppers who haven’t engaged with your program won’t know what the points will get them.

In your Facebook ads, use high-quality content (like blogs) to educate customers on your program and to build intrigue. 

You should also create a landing page that shows what your points convert to. This will get the customers who are part of your program spending. And, also pull in new customers as they’ll feel like they need to act.

8. How can LoyaltyLion be used for acquisition and referrals? 

Key points

People don’t realize that LoyaltyLion can also bring new customers in. 

You can encourage new customers to sign up for your program by showing them the rewards they’ll get. This way, you’re showing your unique selling point straight away and are not leaning on your product to bring new customers in.

LoyaltyLion also fuels referrals. The referral feature makes it easier for customers to tell others about their positive experience. Some brands find that the referral features of LoyaltyLion are in fact stronger than points and retention, so it is worth experimenting with all parts of the platform to find what gets you the best results. LoyaltyLion also has an expert support team on hand to recommend ways to improve the referral part of your program.

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If you want to learn more about Blend Commerce, and what they can do for your brand, check out their site or get in touch

About the author

Adam Pearce Blend Commerce

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