Brands sometimes focus too much on finding new leads that they forget about the most important people that drive the business – existing customers. These individuals have already shown interest, trust, and preference over what your company can offer. They already went through whatever funnel you managed to set up.
Existing customers buy and are more likely to buy again. According to study, 40% of an ecommerce store’s revenue come from repeat customers. They actually spend up to three times more per order. The best part is, getting your existing customers to make a repeat purchase is way cheaper. Attracting a new customer costs five times as much as keeping an existing one.
This is the reason why most companies focus on customer service. They want to keep their current customers happy and satisfied. However, great customer service is not enough. If you don’t have a funnel specifically for existing customers, it’s the same as leaving money on the table. Keep them coming back with the help of the following effective strategies.
The Basic Formula
So how do the formulas work? Our approach is simple. Although it could vary depending on the product, consumption length, and how extreme you are when it comes to retargeting. Here is the basic formula:
Customer Purchase Max Timeframe – Customer Purchase Min Timeframe
To do this, you have to create a custom audience that includes people who purchased within a specific time range. Then, set another custom audience including those who purchased over another period of time. Deduct the two values and the difference will be the specific timeframe of people that bought.
Here’s what it would look like in your ad account:
There are two important points to consider in picking your days.
- Product delivery and consumption – Identify how long will it take for your product to be delivered and how long the consumption is. After all, you can’t retarget someone if they haven’t received their initial purchase.
- Relevancy – Is your product still relevant to the existing customer? For instance, someone who has purchased a mini course about social media marketing 160 days ago may no longer be interested or may be working in a new industry.
The second formula is taking the basic formula to the next level. It’s targeting the people that have purchased more than once from your store.
Here are the steps to set it up:
Step #1: Go inside your Audience tab, click the “create audience” and choose Create a Custom Audience from the dropdown.
Step #2: Select Engagement and click Event. Then, choose “Purchase” event from the dropdown (or whatever event conversion used to track sales).
Step #3: Click on “Refine By” and select “Aggregate Value”
Step #4: Select the frequency (if you type in 2 that means people that triggered that event twice)
With this formula, you ensure that your retargeting campaigns focus on people that have only bought once from your store. One good thing about this audience is whatever approach you choose, it doesn’t need to be too formal. After all, they are your existing customers.