Introduction:
As advertising costs and the blocking of 3rd-party cookies continue to rise, optimizing return on investment (ROI) in ad campaigns has become a primary objective for every marketing team. One proven and effective method to achieve this is by excluding existing customers from your target audience.
DinMo's Platform provides you with a simple way for excluding customers from your ad campaigns, enhancing their performance, and reducing expenses. In this blog post, we will explore how you can improve the ROI of your ads by excluding existing customers.
On average, 10% of the CAC (Customer Acquisition Cost) is spent on customers who have already made a purchase
Exclude Existing Customers: A Winning Strategy
When running ad campaigns on platforms like Google Ads or Meta, audience targeting is typically based on pixel tracking, which includes all website visitors. However, this approach overlooks whether the visitor is an existing customer, often resulting in irrelevant ads being shown to customers who have already made a purchase. This not only leads to unnecessary expenses but also fails to optimize your campaigns for acquiring new customers effectively.
By excluding existing customers, you can implement a winning strategy that offers several advantages:
Save on advertising costs: Excluding existing customers helps you allocate your budget more efficiently, focusing on acquiring new customers rather than targeting those who have already converted.
Avoid overwhelming active customers: Reducing redundant ads for existing customers helps create a more personalized outreach strategy. This approach increases the consistency of your messaging and fosters brand loyalty.
Better measure campaign effectiveness: By excluding existing customers, you can accurately track the performance of your campaigns without the influence of customers who have already made a purchase.
To illustrate:
One common scenario is where a user clicks on your Facebook ad and makes a purchase. Despite this conversion, the same acquisition campaign continues to target the user even days later. This frustrating experience illustrates the absence of 3rd-party cookies, making it difficult to track user actions. As a result, a portion of your customer acquisition cost (CAC) is wasted on customers who have already converted. On average, this accounts for around 10% of your CAC, a significant amount that can be saved and reallocated to more fruitful campaigns.
Tactics to immediately improve your ads' ROI
To address this challenge and improve your ads' ROI, the following solutions can be implemented:
1.Server-side web conversions: Instead of relying solely on pixel tracking, implement server-side conversions (SS conversions) that provide Facebook ads with sufficient data to identify the best customers for your business automatically. This shift can reduce the cost per action (CPA) by an average of 10%. You can learn more on How to improve Ads ROI with Conversion APIs.
💡If you want to implement Conversions APIs check our guide on Meta Conversions API and our guide on Google Ads Enhanced Conversions.
Leverage your 1st party data to improve Ads ROI
2. Exclude recent buyers from campaign targeting: Utilize custom customer relationship management (CRM) audiences to exclude customers who have made recent purchases. By avoiding redundant targeting, this approach can reduce CPA by an average of 10%.
Businesses That Can Benefit
Every business should tap into its 1st-party data. When you combine online event data from your website, such as visits, viewed products, and cart status, with offline point-of-sale data, you gain a holistic view of customer purchase behavior and you can offer personalized experiences to each customer and optimize your targeting efforts.
Excluding existing customers from ad campaigns is particularly beneficial for businesses with varying purchase frequencies, subscription-based models, or those aiming to enhance targeting and messaging relevance across different stages of the customer journey. By separating acquisition campaigns from retention or loyalty-focused campaigns, you can provide more personalized messaging to customers and improve return on ad spend (ROAS).
How to Exclude Existing Customers With DinMo’s No-code Audience Builder?
Excluding existing customers from your ad campaigns using DinMo is a straightforward process. Follow these simple steps:
Ensure your data warehouse is configured as a source in DinMo, with Google Ads and Meta ads added as destinations.
Use DinMo's No-code Audience Builder to create a segment from your customer entity that excludes active customers, such as those who made a purchase in the last 6 months. You can visualize the length and properties of your segment before proceeding.
Use DinMo's No-code Audience Builder to exclude recent buyers from your Segment
Configure the sync of your segment with your desired destination platforms, such as Google Ads or Meta Ads
Your audience is now ready, you can launch your campaign. DinMo ensures your audience is fresh and up-to-date in a timely way.
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