A Lookalike Audience refers to a group of Social Media users who share the characteristics of another group of members. This is an effective tool, in the Digital Marketing arena to identify a whole new customer base online that is similar to your existing customers. Facebook was the first social media platform to introduce this feature, back in 2013. Since then several other digital marketing platforms like Google, Ads, Linkedin Ads, Taboola have bought into it.
Lookalike audiences are chosen from their social media profiles, grouped together by their shared interests, patterns, and demographics. This approach has saved E-Commerce website development companies, a lot of time, and advertising costs in identifying a potential group of new customers.
Here are Look Alike audiences that most marketers use and their characteristics that have great potential for success.
Lifetime value audience
To seek out lookalike audiences, businesses first identify the most viable customers from the existing pool. They are the Lifetime value customers, who engage with the business for a lifetime, with repeated purchases.
The characteristics of these customers are then isolated, to compare them to profiles on social media. This comparison is made on their previous purchase history and only on an extended timeline. This gives you a potential niche customer base with the highest conversion rate.
Highest Cart Value customer
Another lookalike audience that is useful for companies with an extensive backlog is the Highest Cart value customer. They need not necessarily have a high number of purchases, but few high-value purchases. This sets the precedent for identifying other customers with the affordability for luxury products, or with sporadic binge shopping patterns. This rule is good for identifying the holiday or festive season shoppers.
Past Purchaser audience
One of the best practices for businesses with high sales volume and niche products is Past Purchasers. This requires a lot of research into purchasing history much like the Lifetime value audience. If there are a lot of conflicting products that cater to different audiences within the same business, then the Past Purchase history helps sort them into the relevant groups. Then they are pulled into the customer journey with targeted ads and drip campaigns.
Most potential customers add products to their carts, which are abandoned due to various reasons. The products in the cart give us a sense of the customer’s intent and urgency. They are high-quality audiences for remarketing. They are a perfect alternative to past purchase audiences, especially for businesses that are Start-ups or developing a new product. They also require considerably less research than past purchase audiences.
Product Page views
Lookalike audiences based on visitors who viewed the page is a low-cost option for finding potential customers. Although it is a great idea, it requires a lot of finesse to differentiate the actual customer from the visitors who stumbled upon the site by accident, or those with no intent or affordability to make the purchase. It doesn’t require a lot of backdated data but does require extensive time spent on filtering.
Website Engagement audience
Website Engagement is a great way to assess visitor intent, based on time spent on different web pages, scroll depth, interaction with surveys, etc. The metrics and data can be set up and obtained from Social media platforms and digital marketing tools. It allows E-Commerce website development companies to create specific campaigns targeting those visitors into becoming customers.
Various engagement metrics will influence the lookalike audience. Google Analytics allows you to create filtered categories. Research each engagement metric and set the benchmark for the lookalike audience. Facebook also has a feature to isolate the top percentile of visitors based on different engagement metrics.
E-Commerce website development companies have faced confusion in choosing the lookalike audience size and compatibility. It boils down to choosing small lookalike audiences with great potential as opposed to larger lookalike audiences that may unearth more number of customers with lesser profitable conversions. Open Designs is a Digital marketing agency from Chennai that has helped various businesses amass high-value lookalike audiences. With full-scale E-Commerce website design services, we are a holistic operation that drives online businesses to success.