I want to share a Facebook ads Funnel strategy that is giving great results for my e-commerce clients. Using this funnel I grew my client’s revenue to $98,145 (+230% increase) in just 29 days
With the help of this funnel, I was able to accelerate the revenue growth even when my client had an average website, limited funds, and ordinary/regular products. I call this the $100K/Month E-commerce Funnel.
In this case study, I will show you exactly how I did it, step-by-step.
How $100K/Month E-Commerce Funnel Generates Massive Revenue Growth?
Before I tried this strategy my results were not consistent. I was not sure if I was maximizing revenues by targeting prospects in various stages of their buying journey. ROAS (return on ad spend) was low and scaling the revenue was difficult.
In 4 weeks after using the $100K/Month E-commerce Funnel Strategy…
- My client’s revenue increased by 280%
- Conversion rate went up by 75.3%
- And there was a 100% increase in the customer lifetime value
Following is the screenshot of results from Facebook analytics:
7.9X return on ad spend (ROAS) at scale. That means for every dollar spent my client made $7.9!
I will break the process step-by-step
The $100K/Month E-commerce Funnel is an evergreen Facebook funnel that continuously improves itself after every purchase.
Using this strategy, every purchase made on your e-commerce store automatically refines the target audience in the funnel and your ad is shown to people most likely to buy.
How? You will know it by the end of this post.
This funnel consists of 3 Facebook campaigns:
- TOF: Top of the funnel campaign will target cold audience and get new prospects into your funnel.
- MOF: Middle of funnel campaign will target the warm audience, i.e. people who have interacted with your website/videos in some form but have neither added an item to cart nor purchased.
- BOF: Bottom of Funnel (BOF) campaigns will target hot audience i.e., people who have added items to cart but not purchased.
Each campaign consists of a specific set of audiences.
Step 1: Create top of funnel (TOF) campaign and target cold audience i.e. prospects who have never visited your e-commerce store.
This campaign will be an evergreen source of new customers for your funnel.
In this campaign, you will create a custom audience that is demographically and psychographically very similar to your past buyer. You do this by creating 1%/2%/3% lookalike audience of past customers.
This is how you will create 1% lookalike audience for your Tof of Funnel (TOF) campaign:
Step 1: Go to your Facebook Ad Manager > Audience > Create Audience > Custom Audience > Select Website Traffic >You will get to the screen below.
If you have set up your Facebook pixel correctly, every time a person buys from your store ‘purchase’ pixel is fired.
On the screen below you I created an audience of people who have purchased (‘purchase’ pixel fired) in the last 180 days.
I have named this audience ‘Purchased in last 180 days’. Next click on create audience.
$100K/Month E-Commerce Funnel: Top of funnel audience
Next, I created an expanded audience (1% lookalike) of people who are demographically and psychographically very similar to past buyers.
This is how you create 1% lookalike audience of your past buyers.
Step 2: Select the audience you made in step 1 and click on Actions>Create Lookalike
Next, you need to select the target country and the size of the lookalike audience (1%). Then go ahead and click on create audience
Every time a purchase is completed, Facebook updates your past buyer audience (as you have a new buyer) and this updates and refines the 1%/2%/3% lookalike audience to create a tighter audience most likely to buy your product.
Step 2: Middle Of Funnel (MOF): re-target warm audience — People who have visited your website but have not added any items to cart.
Using catalog ads of Facebook, you can show the same products to people who visited detail page of that product but didn’t add to cart or buy.
You will create catalog ads by selecting the ‘Catalogue sales’ as a marketing objective (Not going into details of how to create the ads. Drop me an email/message if you need any help)
Middle funnel (MOF) campaign structure:
The buying cycle for most e-commerce stores that sell low to medium-priced products is short. People take less time to decide on products less than ~$50, they usually buy within the first few days of viewing the product. Therefore, maximum sales take place within 1–2 days of visiting the website.
But if you sell expensive products your buyers might need more time to decide and the maximum sale might occur on the 7th to 10th days after viewing the product.
You can check the buying pattern of your customers using Google analytics.
Log into your Google Analytics go to Conversions> Multi-Channel Funnels> Time Lag Report.
This is the Time Lag Report of my client.
What does this report say?
60% of purchases are done in 0–2 days
~70% of purchases are completed within 0–7 days
The remaining 30% of the purchases are done in 7–30+ days
If a person didn’t buy within 0–7 days it will be expensive to keep showing the ads to the same person for more than 7 days. Based on the data above even if that person purchases the product after seeing 7+ days of ads, the cost of purchase will be high and ROAS will below.
Therefore I restricted my retargeting ads to 0–7 days.
I focused most of my re-targeting budget for 0–2 days (60% budget), next 2–4 days(20% budget) and 4–7days (20% budget)
We can re-adjust the budget based on performance once the ads are running for a few days and we have data to make decisions.
Step 3: Create Bottom of Funnel (BOF) and re-target your hot audience who have added items to cart but not purchased yet.
People who have added products to their cart but have not purchased are your best bet because they are the closest to buying that product. Once they add the product to the cart and leave the website without purchasing it you can re-target them and show them the same product again so they can buy it the next day.
I created a catalog ad campaign and retarget people who have added the product to cart but not purchased.
Again based on the data from the time lag report, I created ad sets targeting people who added to cart but not purchased in the last 0–2 days, 2–4 days, 4–7 days.
Now You Try It
This is how you can use the $100K/Month E-commerce Funnel and maximize your revenue and profits quickly and easily. If you have any doubts or need any help contact me. Happy to help!
The $100K/Month E-commerce Funnel is unique and far superior to most of the funnel structure because:
- You can target people in different stages of the buying cycle with different messaging to ensure maximum conversions.
- You can give more budget to a specific audience within the warm and hot audience, so you get a maximum return on investment.
- This funnel gives you the flexibility to include more audience in different stages and test out what works best.
Hope you can see the potential of this funnel strategy for your E-commerce business.
Unlike spending loads of money to test out funnels hoping that something might work you now have a proven and tested funnel. With this funnel, you are way ahead of most of your competitors.
Yes, it takes some hard work to create something great.
Ready to get started?
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