Imagine investing Rs. 3000 in marketing to generate an instant revenue of Rs. 106,000. Last year in August, we used Facebook marketing to achieve an ROI of 3600% for a client. In this blog, we share the 7 steps you can follow to do the same for your business.
Facebook is the most powerful marketing tool for small and medium businesses as it works faster than any other advertising medium and produces instant results. The three most powerful features of Facebook marketing are its ability to:
- Reach the profile of people you choose;
- Promote a “call-to-action” based on your business objective; and
- Monitor promotions in detail using its advanced business analytics tools.
To create effective Facebook marketing campaigns, you need skills to:
- Design images, slide shows, videos, etc. used in the advertising campaigns;
- Convey your value proposition to your target audience;
- Define the parameters of each campaign; and
- Monitor the performance of each campaign.
If your business lacks these skills, it is best to outsource your Facebook marketing. If your team has these skills, here are the 7 steps to follow for amazing ROIs.
1) Choose an occasion
People need reasons to buy. Apart from personal events, festivals and special days create positive emotions that make people want to spend.
We ran a 1-day promotion on “Friendship day” and a 2-days promotion on “Rakhi” with a total budget of Rs. 3000. And, on these 3 days, we generated a sale of Rs. 1,06,000 for our client.
Here are two sources you can use to find the right day(s) for your promotions:
2) Define the audience
Decide the profile of people you want to sell to. This is called your ‘target audience’.
Most campaigns do not produce great ROIs because they are not targeted to the right people. If you find it difficult to define the target audience, try different sets of targeted audiences and monitor the ROIs they generate. Then, use the most reactive audience for future campaigns.
Facebook allows you to upload emails of people you think is your best audience. Then it searches for other people who have similar profile and creates a “lookalike audience”. For our campaign, we created a lookalike audience using the email list of our client’s existing customers.
3) Choose the product
Our client sells more than 8000 products on its website. But, we chose to promote only 1 product. Believe it or not, single product promotion is effective. It speeds up decision making by eliminating the “confusion of choice”.
The product you choose should appeal to a majority of your target audience; have a respectable profit margin after discounting; and deliver high value to your customers.
4) Create a lucrative offer
“Discount” is the single most important reason why customers buy online. Flipkart, Amazon, Snapdeal and Shopclues have made discounts a habit. So, if you do not offer a discount, people will not react to your promotion.
Does that mean you will make less profit? Yes, and no. Your profit per sale (or item) will go down for sure. But, your total profit will go up because of the rise in volume of sale.
In our campaign, the MRP of the product was Rs. 2450 and our client decided to offer it for Rs. 1350. He offered his customers a chance to save Rs. 1100 (or 45%) on the MRP. And, it worked.
5) Design attractive creatives
Before people read or react to your offer, they see the creative. Facebook advises to just use a photograph that relates to your occasion, product or offer. If you want to put text it should cover less than 20% area of the photo.
Ideally, your creative must show a person using the product you are promoting. If that is not possible, it should show the product. Apart from this, predicting which creative will work is not an easy job and requires continuous experimenting.
For our campaign, we used the photograph of the product and a smiling woman pointing to the product.
6) Clearly communicate the value proposition
Our creative said, “SAVE Rs. 1100” on the top left corner. Under that, in much smaller font size, we mentioned “+ Free Shipping”. Make sure your product and offer is clearly visible. Any other information should be added to the text portion of the campaign.
7) Monitor the campaign
As the last step toward a great ROI, you need to monitor your campaign very closely to see its effect. To do this, you must integrate Facebook pixel into your website and link the campaign to this Facebook pixel. Once this is done, you will be able to track the activity on your website that results from your campaign. Apart from this, Facebook provides you every possible metric to measure the effectiveness of the campaign.
If your campaign is not producing the desired result, you need to stop it without wasting too much money. In this case, you will need to change one or more elements of the campaign (product, offer, creative, communication or target audience) and try it again to hit the bulls eye.
If you are finding it difficult to generate at least 600% ROI on your Facebook marketing, get in touch with us. ReachOut is the only digital marketing agency that guarantees its client a minimum of 600% ROI on their digital marketing spend.