So while it might not be in your ads account yet this new Facebook Audiences tool looks to be a very exciting addition to the current Lookalike options available already simply because now we can create a Lookalike based on the Lifetime value of a client.
The end goal is to create a cold audience that is most likely to lead to positive results.
That quote from Jon Loomer in his post yesterday I absolutely love and is so relevant because that is always the goal we are trying to reach right, to create Top of Funnel cold audience ads that get the best results to create a roll-on effect down through the rest of our funnel.
So here’s the lowdown on this new Lookalike Audience Tool
Built on the Uploaded Customer File premise the LTV (Lifetime Value) aspect allows us to prepare our customer file differently prior to uploading and give Facebook some data around where to put some weight into the resulting Lookalike audience based on which customers are rated from high to low in terms of their Lifetime Value.
The key difference between this and a standard Lookalike is pretty obvious. Imagine two Lookalike side by Side comparisons;
STANDARD CUSTOMER FILE
A valuable source of people who have bought from your business and a Lookalike audience of people who are likely to be interested in your business because they’re similar to your best existing customers.
LTV CUSTOMER FILE
The same data source fro the Lookalike audience in the above way but with an additional field fora rateable dollar value attached to each client that allows Facebook to focus on the the customers who provide the most value to your business.
Is this for me?
This isn’t going to be for everyone yet because for this to work there has to be a way of generating a rankable (Yes I made that word up) lifetime value on your clients/customers. Additionally lifetime value might not come into play too much when all your customers have a similar lifetime purchase value so the effort might not match the return. Lastly, this is a manual process so there might be a bit of work to do to calculate your customer LTV’s and create an upload ready CSV.
In saying that though I think this could be a very powerful tool to supercharge a Lookalike audience into something that might yield higher quality results from a value based cold audience so experiment with it and see what results you get.