Budgeting and Building a Facebook Sales Funnel for your Shopify Store
Different price points call for different funnels. Ads that drive people who have never heard of your store to buy your $500 hot tub is not likely to work. Unless the hot tub is free. Or rather, the “How To Pick The Best Hot Tub For Your Home” PDF guide is free. Now we’re talking.
In other words, you need to adapt the way you use Facebook Ads depending on the price and type of products you sell. There’s an adaptation for everything, including those grey area products (like supplements and dating - you can find more on that in Chapter 10).
Bidding and Budgets
Facebook’s pricing for your advertisements works like an auction: the more people competing for your target audience, the higher price you’ll have to pay to appear in front of them. Automatic bidding let’s Facebook choose the price point for your ad dependent on what you are optimizing for. As far as “manual” bidding is concerned: unless you know exactly how much you are willing to spend for a visit and have consistent figures for visits, we highly advise not to do it.
At AdEspresso, we normally advise people to optimize for “clicks” or “impressions” until you get over 100 conversions. Once Facebook has significant conversions, it can start to understand those in your audience that are most likely to convert.
For budgets, if you do CPM (cost per thousand impressions), you can go as low as 1 dollar per day per ad. For clicks and conversions, you’ll have to set a minimum of 5 dollars per day per ad.
Nonetheless, what really determines what you should optimize for - and how much should you spend - rests on the type and length of sales funnel you are creating.
Building the Facebook Sales Funnel
For lower price products (which fall in the range under $40 USD), you may get away with a direct sale ad, or by offering a coupon and an additional re-targeting ad. However, for products over that monetary amount, you’ll want to have a more intricate funnel and track your cumulative cost through each step to determine your real return-on-investment (ROI) from your advertising. Your efforts outside of advertising can also influence this. For instance, this content marketing case study demonstrates a less costly way of getting visitors besides paying for them via “link click” ads.
So, without further ado, here’s a “Facebook Sales Funnel” that our Marketplace Services team mapped out. Feel free to print this out and trace the flow.
Check back on Chapter 6 if you need a refresher on what Custom Audiences should go where in the funnel/flow-chart.
For more on how these systems work, read our blog post on how a multi-step Facebook Sales funnel actually saves you money.
Upselling and Splitting Your Funnel
Elaborating on Chapter 6 (Retargeting and Custom Audiences), the primary methods of upselling with Facebook Advertising are targeting previous customers or split testing different prospective customers.
AdEspresso (a B2B software), for example, tends to split our lists this way:
- Users who have signed up for the software but never created a campaign
- Users who created a campaign, but stopped using the platform
- Active users
- By advertisement/usage type: Users who promote mobile app install, users who promote ecommerce websites, and users who promote Facebook pages
- Newsletter subscribers that have not yet signed up for AdEspresso