# Facebook Ads For ECOMMERCE: 4 Keys To Success

Channel: Ben Heath
Video: https://www.youtube.com/watch?v=nwQ6Lcug_RM
Duration: 17 min
Language: English
Words: 3662
Transcript page: https://viewrankai.com/tools/youtube-transcript/nwQ6Lcug_RM

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[0:00] hi guys it's ben heath and in this video i'm going to talk about facebook ads for e-commerce and specifically i'm going to give you four keys to success now these four keys to success are not things that are talked about a lot elsewhere um it's not something that a lot of facebook advertisers talk about but they make a really really big difference if you're running facebook ad campaigns for an e-commerce business whether it's your own or a client or something like that i think you're going to find this tremendously valuable they're all fairly easy to implement and um and yeah i think it's going to provide a lot of value so before i get

[0:28] into those four keys to success just want to very quickly ask you to smash your like on this video click that like button that would help me out and be much appreciated and of course subscribe to my youtube channel if you are new and haven't done so already okay so i'm in an example facebook ad account here is going to help me demonstrate some of these keys to success that i want to uh to share and the first one is really sort of like a broad overview of your attitude towards facebook advertising what do you expect from a facebook ad campaign what you hope to get from a facebook ad campaign

[0:55] now i've spoken to a lot of facebook advertisers a lot of people just getting into facebook advertising and they will often say things like look i'm not willing to pay more than 10 of the value of a customer in advertising costs so for example let's say you're an e-commerce business you're selling a range of products your average order value is 50 in that scenario you'd be willing to pay a maximum of five dollars to acquire a new customer now wouldn't that be fantastic who wouldn't love to 10x deliver a 10x row ass whenever they run facebook ad campaigns isn't that awesome and it does happen but it's very rare it is not the norm

[1:30] and i think if you go in with that attitude you are not doing yourself any favors over the long run it's very very difficult to consistently deliver a cost per purchase of five dollars it is possible but very very difficult very rare particularly at scale and particularly over the long run so what should you do instead i am a big big fan and i think this is something that all e-commerce facebook advertisers try and keep in mind that your initial target should be to break even on initial customer acquisition so what does that mean i'm not talking about if your average order value is fifty dollars you

[2:04] spend fifty dollars per new customer i'm talking about spending uh your average order value being 50 you still have to factor in your cost of goods whenever you're paying the the manufacturer's supplier perhaps some delivery costs and things like that but let's assume you've got like a 50 margin so you're acquiring new customers 50 each 50 of that is yours to keep which is 25 therefore your target cost per purchase should be 25 and that means that you're basically acquiring new customers for free you aren't making any money on them but you aren't losing any money on them now that might sound like what's the point what's the point in running

[2:38] facebook ad campaigns if we're not making any money on customers and and i can understand that attitude but it's incorrect and particularly over the long run this has been shown to be very very incorrect and very detrimental there is a tremendous amount of value in acquiring new customers firstly the vast majority of e-commerce businesses either have products that people will repeat purchase so if you acquire a whole load you know if your business ticks that box oh yes our products are consumable for example and there's repeat purchase if i could give you 10 000 new customers for free right now that would be an amazing thing for your business the

[3:12] amount of those people that are going to reorder and reorder and reorder is is tremendous okay and even if you don't have a consumable product and people buy again i'm sure you have other complimentary products that perhaps someone bought something today but they could buy other products of yours next week next month next year that nearly all e-commerce businesses are going to have something um along those those lines take take um is a part of their business now if you can acquire a ton of customers as i gave the ten thousand example that is so so beneficial over the long run often when you're running a

[3:47] facebook advertising campaign you have to choose between short-term profitability and scale so we all know or you know if you're new to facebook advertising you might not but it's very well understood that if you run a campaign at a hundred dollars a day your cost per purchase is almost certainly going to be less than if you're running a campaign at two thousand dollars a day as you scale you have to reach larger and larger audiences people become um less and less specific and less targeted and your cost of purchase increases but so you could make the choice we can keep our facebook ad campaign operating at a

[4:19] really low level and generate a profit on each new customer or we can go to the point where we break even look to acquire an enormous customer base and then in six months definitely 12 months time when you've been running a facebook campaign a scale acquiring tons of customers you're then in an amazing situation where you can generate so many sales from your email list emailing your existing customers from retargeting existing customers as opposed to constantly going out to cold audiences on facebook um i've seen businesses do this and then they launch a new product that sells out immediately or within the first 24 hours or something because they've built that

[4:53] customer base and i think that that's the attitude i want to get across everyone in in in the sort of tech world and a lot of these very fast-growing fast-paced companies that get access to external funding whether they're venture-backed or have other sorts of investors not only operate with this in mind they go one step further so we've worked with a number of companies that have external investment that are actually willing to make quite a big loss on the initial customer that they generate in exchange for generating a boatload of customers really really quickly they're basically willing to to to make a loss now obviously when you

[5:29] have external finance it's easier to do that so i'm not necessarily recommending you do that yourself but everyone can operate at break even you know you know that's not there's no money out of pocket for you you know at least once averaged out of course once you've paid your facebook ads and things like that there's no money in a pocket for you that is sustainable and you can keep going with that the the venture pack companies often have a huge advantage because they can make that big loss but they generate an enormous customer base they in effect generate a ton of brand awareness whilst running their more

[5:54] direct to offer campaigns they know that people are going to buy their products again repeat custom they know they're going to recommend it to friends and spread it via word of mouth and so whilst i i appreciate that's not open to to everyone and i've never got any external investment in in my business um had to grow organically break even is the point at which you can do that you can operate a break even and the difference between needing to double your money on a facebook ad campaign as an e-commerce business let's say in the first year and being willing to just break even might be the difference between you

[6:22] acquiring a thousand customers in your first year and 10 000 customers in your first year or you know your metrics may vary might be 10x that might be less than that depends on the price of your products all that sort of stuff your budgets and things like that but that is such an important thing to to get across i know i'm sort of hammering this home but have that attitude over the long run you will win your customer is thinking i need to make a profit i need to make a profit in the short run and you're not you're happy to break even in a year two years time you will have

[6:50] 20 40 50 times as many customers and you'll win simple as that okay so that's the first one right i'm going to rattle through these a little faster because i uh delayed on that one a little bit so it's somewhat similar to the breaking even um it's a piece of it the point at which you can break even or even do better on that on a facebook ad campaign when it comes to e-commerce is obviously to do with your facebook advertising so that's going to be the big component pieces right who you're targeting what's your ad created look like but your average order value is the

[7:23] other massively important part there's a lot of facebook advertisers that have a cost per purchase of say 20 and they're like how do i get that down to 15 i just need to get that down to 15 and they're trying all these things testing stuff creating ad creative recording videos etc etc when actually it might be a lot lot easier for them to instead of decreasing their cost of purchase by five dollars increase their average order value by five dollars or ten dollars whatever um which will effectively do the same thing to how the finances look on your facebook ad campaign and this is so underutilized amongst

[7:58] facebook advertisers amongst people advertising e-commerce products is using one-click upsells in order to increase your average order value it is just such a no-brainer i see it so rarely and it should be used just all the time now i'm not talking about sort of more traditional upsells or old school upsells where you know perhaps you when someone's going through the checkout process you then say oh would you like to add this to your order otherwise known as an order bump i'm not talking about someone purchased something and then you're emailing them the next few days trying to get them to purchase something else you can do those things as well you can

[8:33] have an order but you can have an email or to respond to sequence that's trying to upsell your your customers but i'm talking about one click upsells so let's say someone goes through to your website they purchase a pair of shoes right um the thank you page the next page those people are taken to after they purchase entered in their payment details they've purchased boom they're then presented with a page that you've probably seen these sort of things and they're often only used by expert marketers but they should be used by far um more people that said e-commerce providers and things like that um whereby the page

[9:01] is like thank you for your purchase oh by the way would you like to add this to your order um it's fantastic here's a big discount because you just became a customer of ours yada yada they and then they click one click they don't need to enter in their details again they click it gets added to their cart they get charged and you massively increase your average order value and this should not be underestimated i've worked with lots of businesses where their initial offering their initial product was purchased is say 30 and they can double their average customer value all the way up to 60 with three or four upsells you don't

[9:30] need to have one three or four upsells that is such a huge um component of improving your results as a facebook advertiser for an e-commerce business being able to scale you know if you take your average order value from 30 to 60 that might mean you can take your acceptable cost per purchase from fifteen dollars to thirty dollars and if you can pay thirty dollars to acquire a customer as opposed to fifteen dollars to acquire a customer you might be able to have a 10 20 x campaign and as i said as i've already mentioned acquiring that many customers just does amazing things for you um for your business over the

[10:06] long run so that's really important so one click says how do you go about doing it right so i've got a couple of examples up here sam carter offered one click upsell is very very easy to use click funnels offer when click outs has both pieces of software that i've used in the past i just wanted to to bring those up quickly if using something like shopify or any other um ecommerce platforms there are tons of like plugins and external software that you can just feed in just search for things like shopify one click upsell and you should be able to implement that fairly easily tech

[10:31] technically it's not that difficult and it's so worth the time to go ahead and work that out so that's key to sex number two is increase average order value as much as possible with one click upsells you do not hear people talking about that anywhere near enough it's really really important okay now i want to jump to the uh the ad level i'll show you a couple of things let's bring up an example ad and just this is just an example ad campaign i created before by the way guys so you don't need to to worry about this at all so where are we um oh that's selected on use existing posts

[11:01] we don't want that i don't know where it is it's gonna create ad okay so when you're creating a facebook ad one of the first things you're going to do is select the add format now a lot of people just think video performs best and that's not actually true what i would say and this is particularly the case with e-commerce is that the ad format should reflect the price point of your product in that more expensive products need more complex ads simpler products need simpler ads so if you're selling something for just 15 20 that's an impulse purchase most people can buy that without really thinking

[11:35] about it too much you want a simple ad format something like a single image or even a carousel something where they can glance at it they get the idea i'm interested i'm not i go and buy i don't etc etc if you're offering something more expensive you know something that's 150 or perhaps something that people aren't familiar with they don't know how it works that's when i want more complex ad formats so that's when i want to use things like videos slideshows particularly explainer videos demonstration videos for e-commerce works really really well and you may also want to use longer copy in your ad so when you're writing

[12:07] in your in your text section i've selected carousel is a little bit different but if i go back to single image a format you guys will more um readily appreciate there we go primary text when you're entering your primary text information again cheaper less expensive products one or two maybe three lines just to get across the main benefits emphasize the sale or something like that get to purchase more complex things that are going to take more thought more reasoning more convincing to purchase add in more text so complexity add with um match the price point and i think that should save a lot of you guys that are creating very complex

[12:46] videos and things a lot of time if you're selling inexpensive e-commerce products stick to images in more simple ad formats that's number three fairly simple and then number four which is probably the biggest one if you've stuck around this long well done because it's probably the biggest most important key to success when it comes to facebook ads for e-commerce and that is that you want to be constantly running a special offer but a limited time special offer this is so so important you can half your cost per purchase by doing this alone so how do you do that how do you constantly run a special offer have a limited time only

[13:19] what we love to do is we will let's say take uh we might set up offers on a monthly basis so we might say for the month of september we are offering 30 off this product range or this particular product so the special offer the discount helps grab people's attention and makes it seem like a better deal which which it is but the time frame on it you have to do this by the end of the month that makes such a big difference because there's so much to do with facebook advertising when people are on their phone waiting in you know in a line somewhere they're in their car

[13:51] you know when to pick someone up they're you know maybe sat on the toilet they're just grabbing it at any time and just having a quick look right a lot of times people won't purchase something not because they're not interested but it's just not a great time they haven't got their wallet to hand it's a bit difficult if you have a limited time offer it makes people buy there and then oh i don't want to miss out on that i don't want to pay 30 more if i wait another week they go ahead and buy so you have something like 30 off for the september only for this

[14:20] product range then in october or you could do it even more frequently than this maybe every week maybe every two weeks something like that you change up the offer so instead of 30 off that particular product or product range you do buy two get one free um on a different product range or a different product okay so not only are you changing the products that are being discounted but you're also changing the structure of the offer you've got 30 off in one case buy two get one free it helps keep it fresh when people are seeing ads over and over again and stop just going oh they're always

[14:51] running a 25 discount they're always running a 40 discount something like that and you could even have another offer in the next month or the next couple of weeks where it's like if you buy this product we'll throw throw in this other products completely free something along those lines so those are three different types of offers and then if you combine those with doing that on different products or product ranges within your store and you can have a whole year of offers there really easily okay and that's how you're constantly running special offers discounted offers on a limited time basis a lot of people constantly run special

[15:22] offers but they just leave them going the limited time is everything and what you'll often see when you do that let's say it's the end of september the end of the month is your sales will shoot up right at the end of the month your results will be fantastic because of course people don't want to miss out they want to take action and everyone loves to procrastinate a special offer that has a limited time removes the ability of people to be able to procrastinate easily so um so yeah so hopefully that's been useful before you go a couple of three things i want to quickly mention first

[15:47] is my free webinar called three killer facebook ad strategies to double or more your revenue and in this webinar we're breaking down three different sales funnels that have produced fantastic results for our clients we've sort of explained which sales funnel you want to use depending on your particular type of business so there's one in there for e-commerce for example strongly recommend you check it out completely free video is in a link is in the video description below the other free thing is my facebook ads mastermind group free facebook group almost 50 000 members which is absolutely amazing i do free lives trainings in there people are asking questions

[16:19] getting them answered all the time amazing community really helping each other out again free to join links in the video description we would love to have you be part of that community go ahead and join them we'd uh love to have you in there if you found this video useful please again give it a thumbs up that'd be much appreciated if you haven't already subscribe to the channel if you are new and you haven't done so and of course comment below to let me know if this was useful comment below if you've got any questions all that sort of stuff best of luck your facebook advertising campaign guys

[16:44] and i will talk to you soon bye for now bye

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