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Turning Facebook Analytics Into Action

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I’ll come right out and say it: Facebook has had a rough few weeks. From the Congressional hearings to the news surrounding Cambridge Analytica, it’s been a difficult time for Facebook advertisers.

It feels like we’re on defense. We’re trying to stay on top of all the latest news while also defending the company and our profession to family, friends, and clients because many of them simply do not understand how Facebook advertising works and what Facebook does with user data.

And you know what? Their frustration is warranted. We should all be able to describe and understand what any platform does with our data because the more we understand and the more familiar we are with it, we can more easily work together to improve it.

(Here’s a helpful article on the topic, just in case you need to pass it along to frustrated folks.)

Recent news aside, it’s important to keep in mind that Facebook has significantly scaled in users over the past few years, and as a result, its advertising tools have also become more sophisticated. And with more complex advertising tools, myths and misconceptions abound, especially surrounding data.
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I’m proud of the work I’ve done to help demystify Facebook ad tools and empower thousands of business owners and entrepreneurs with detailed information and recommendations. And one of the best tools that helps all of us understand data at a deeper level is Facebook Analytics.

Jon and I taught a Facebook Analytics course last December and we received this question, which helped prompt our thinking for a future Analytics course: 

How do I take these insights and turn them into actionable steps in my campaigns?

With that in mind, this post is meant to jumpstart your campaigns and move the needle right away by covering Funnels and Lifetime Value within Facebook Analytics. We’ll take a closer look at commonly asked questions related to these reports and some potential solutions.

[If you’re wondering how to set up Facebook Analytics or generally learn more about the topic, you can read my overview post, Jon’s post on setting up events properly, or a deeper dive on reactions via Analytics. If you’re not very familiar with Facebook Analytics, I’d recommend reading those posts first!]

Funnels

Funnels within Facebook Analytics allow you to build visualized paths within your sales cycle to see how different parts of your funnel relate to one another. One of my personal favorites is using the funnel of Page View > Add to Cart > Purchase within a 90-day window.

Facebook Analytics Funnels

This funnel helps me understand how all traffic that’s come through our site within the last 90 days has behaved. I can see the overall conversion rate of the funnel, the average time to complete this funnel, and much more.

Facebook Analytics Funnels

Questions Related to Funnels

See below for a few examples of questions and answers that come to mind when reviewing this data.

Question 1:

Can I improve the percentages of people who view a page and then add something to their cart?

Here are a few potential solutions (this is not an exhaustive list!):

1. Launch an improved offer on the ad via the conversion objective, within the ad to Previous Page Views who didn’t add to cart. Perhaps instead of trying 10% off on remarketing to this group, change the ad copy to “add to cart and save 20% now,” offering an incentive to users to add to their cart.

2. Launch a Page Post Engagement Objective ad towards Previous Page Views who didn’t add to cart, thus reaching a wider selection of that audience. You could use that ad to explain more about what you do, what makes your product or service different, or launch a video describing it.

3. Launch a Messenger ad towards those who’ve added something to their cart but not purchased. The ad copy could be “what questions do you have?” and that ad drives them into a Messenger conversation. Sometimes users put something in their carts as they’re considering that product, so why not ask if you can be helpful?

4. Launch multiple ad types at the add to cart audience, such as a carousel ad, a photo post ad, a slideshow, and a Canvas ad. Gauge success over a testing period to see if you can improve the baseline percentage of those who ultimately become purchasers.

Question 2:

Some of my existing site traffic isn’t going to buy immediately, so what else can I do with that audience?

Potential Solutions:

1. Launch a Lead Gen ad at Previous Page Views, asking for that user’s email address. That way you can add them to your email list and use email to help them better understand your product or service.

2. Launch a video advertisement that gives more of your company backstory to those users. Help them understand who you are in a more complete, compelling way.

3. Launch an article for Page Post Engagement to that audience to help them see external validation of your product.

4. Showcase your products using an engaging Canvas ad, which combines video and photos to more completely describe who you are.

These are just a few examples of successful tactics I’ve launched using Funnels. There are many more.

Lifetime Value

One of the most valuable target groupings that surprisingly doesn’t get much attention is previous purchasers. As advertisers, we focus a lot of attention on brand new acquisition and sometimes we forget about the people who already know us. This group of customers shouldn’t be forgotten.

Compounding this problem, many advertisers do not properly calculate Lifetime Value. They focus on Cost Per Acquisition (CPA) instead of Lifetime Value, which can help provide more of a buffer when acquiring new customers versus only looking at your average order value and calculating at what cost you must obtain a new customer.

As competition rises and prices continue to increase, we must consider what a true value of a customer is over his or her lifetime. For example, let’s take a recent conversation I had with a client and break it down.

  • Their average order value is ~$40.
  • Their CPA goal is $20. If an ad set CPA goes above $20, they turn it off immediately.
  • Their lifetime value (LTV) is $80.
  • Their ads are having a hard time getting conversions at $20.

It’s a challenging conundrum because as competition rises on Facebook and Instagram, advertisers have to consider measuring their LTV, not just CPA. You can find this information via Lifetime Value within Facebook Analytics.

My first advice to them was “consider raising your CPA goal to $30.” By increasing it, you allow your ad sets to get a higher CPA before turning them off and you’re considering the lifetime value.

Consider these LTV graphs from Facebook Analytics.

Facebook Analytics Lifetime Value

Facebook Analytics Lifetime Value

Here are a few overall observations:

  • Over a 12-week period, the LTV has increased from $40 (likely their first purchase) to $84.
  • The week of March 7-13, you can see those users are already at $71 for their LTV in week 4.

Question Related to Lifetime Value

Here’s a sample question on the Lifetime Value topic:

What can I do to increase Lifetime Value of these customers? How can I improve from $84 to $100+ over a 12-week period?

Potential Solutions:

1. Launch a series of ads for twelve weeks, introducing them to new products in your store.

2. Launch a Dynamic Product Ad utilizing a new product set they’ve not yet been exposed to before.

3. Do a Facebook Live showcasing new products and advertise it only to previous customers via the conversion objective.

4. Create a custom discount code only for previous purchasers to use, asking them to come back and try another product.

5. Launch a series of different objectives, such as Page Post Engagement and Reach at the previous customer audience to see if you’re able to touch a wider segment of that core audience.

Raising the LTV has a lot to do with storytelling, so the more you can turn customers into advocates the better.

Learn More

If you want to learn even more or if you have questions about how to dive deeper into these topics, join us on April 24 and 26 for our upcoming master class on Facebook Analytics.

The post Turning Facebook Analytics Into Action appeared first on Jon Loomer Digital.


Source: Jon Loomer

Facebook Analytics Funnels: Value of Reactions and Page Actions

Did you know that you can use Facebook Analytics Funnels to help uncover the value of an action on Facebook? You can, and it’s pretty amazing.

You probably noticed that I’m on a big Facebook Analytics kick lately. Andrew wrote about 3 Benefits of Facebook Analytics a couple of weeks ago, and I wrote about Facebook Analytics, the Pixel, and Events. That, of course, coincided with a Facebook Analytics Master Class that happened last week (you can still sign up for the recordings).

Why the focus on Facebook Analytics? Because it’s a great tool that no one is using. And I was one of those people until earlier this year. Now that I see what you can do with Facebook Analytics, I’m hooked. One of the main reasons for this new focus: Facebook Analytics Funnels.

Thanks to Facebook Analytics Funnels, I’ve found that the most valuable actions someone can take on my Facebook page are messages sent, “love” reactions, and post comments. This post explores how I uncovered this information, and how you can better understand your own funnel.

Set Up Event Source Groups

To get the most out of Facebook Analytics Funnels, let’s first make sure you have everything set up properly in Facebook Analytics.

Go to Facebook Analytics and set up your Event Source Group at the top left.

Facebook Analytics Event Source Group

Select event sources for your business. Personally, I select my Facebook page and pixel.

Facebook Analytics Event Source Group

By doing this, Facebook can track a single user across Facebook (page, posts, and Messenger) and my website.

Facebook Analytics Funnels and Pixel Events

Before we move forward, understand that the quality of information you can get in Facebook Analytics depends upon your usage of Facebook Events. You use Events to tell Facebook when a purchase, lead, registration, or other conversion happens — as well as the details of that conversion (value, quantity, product).

If you need help with this, read my post for details.

Create Your First Funnel

Click on “Funnels” under Activity on the left…

Facebook Analytics Funnels

If you haven’t created Facebook Analytics Funnels before, it will look like this…

Facebook Analytics Funnels

Click “Create Funnel.”

I recommend you expand the time window at the top left to increase the sample size to provide meaningful results. Consider using “last 90 days” or a custom time period.

Facebook Analytics Funnels

Now you need to add your first funnel step. This will be the top of the funnel — the first action that someone performs.

Facebook Analytics Funnels

The options that appear here will depend upon what source groups you added and the Events that have been registered. Following are the options that appear for me:

  • New User Activity (Any)
  • User Activity (Any)
  • Comments (Page Posts)
  • Shares (Page Posts)
  • Reactions (Page Posts)
  • Bocked Conversations (Messenger)
  • Conversations Read (Messenger)
  • Deleted Conversations (Messenger)
  • Label Added (Messenger)
  • Messages Received (Messenger)
  • Messages Sent (Messenger)
  • New Conversations (Messenger)
  • Add to Cart (Pixel)
  • Complete Registration (Pixel)
  • Content View (Pixel)
  • Page Views (Pixel)
  • Purchases (Pixel)
  • Search (Pixel)
  • Sessions (Pixel)

You’ll need to add multiple funnel steps (at least two)…

Facebook Analytics Funnels

You can edit a funnel step to add more detail.

Refine by parameter, demographics, device info, or web parameters…

Facebook Analytics Funnels

You can also set a time to complete the funnel. If you use this, only those who complete the funnel in the designated time will appear in your results.

Facebook Analytics Funnels

As you can see, the options are virtually unlimited regarding the funnels you can create. So let’s focus on funnels that 1. start with an action on Facebook (reaction, post comment, post share, or message) and 2. end with an action on my website (page view, registration, or purchase).

Post Reaction to Page View

First, let’s get an idea of what post reaction is most likely to result in a page view on my website. For example, are likes an empty reaction? Might people like without clicking the link? Are negative reactions less likely to result in a click?

Let’s get a baseline by creating a funnel of all post reactions to a page view…

Facebook Analytics Funnels

In the example above, about 46% of those who like a post end up viewing a page on my website. That means that more than half of all reactions aren’t leading to a click or page view. And the median amount of time to then view a page on my website is 1.1 weeks. In other words, it’s not in immediate reaction to the post they saw.

But maybe this comes out differently based on the reaction.

The information available by reaction isn’t significant for “angry” (11 people), “haha” (53), or “sad” (11) due to sample size. But if you’re interested, here is the breakdown of page views by reaction:

  • Angry: 36%
  • Haha: 30%
  • Sad: 64%

“Wow” reactions were used a bit more (175 people) and they resulted in a page view 53% of the time.

Facebook Analytics Funnels

“Like” reactions are most common (13,000 people), not surprisingly. However, a “like” doesn’t necessarily mean a user is more likely to view a page of my website. About 46% of likes result in a page view.

Facebook Analytics Funnels

“Love” reactions provide the most interesting results. There are 709 people who “loved” a post, so that’s a decent sample size. Of those who “loved” a post, more than 61% viewed a page of my website.

Facebook Analytics Funnels

Post Reaction to Registration

As you might imagine, sample size will become a bigger issue when we move from page views to registrations. At the same time, there is enough data to learn something here.

Of the 13,000 total people who offered a post reaction, 1,000 (7.7%) would result in a registration on my website.

Facebook Analytics Funnels

Understand that most page posts are not promotional. They are most often links to blog posts. So this conversion percentage doesn’t reflect a direct conversion rate for the promotion of an opt-in. Instead, it reflects the likelihood that someone will register eventually for something if they provide a post reaction.

None of the 11 people who shared “angry” reactions would register on my website. That’s not a big surprise, but it’s interesting to get that confirmation.

Two of the 11 “sad” people would register. While that’s a nifty 18.18%, I wouldn’t consider the results to be significant due to sample size.

Only 1 of the 53 “haha” reactions resulted in a registration (1.89%). Small sample size, but still rather significant. The “haha” is not productive.

A total of 13 of the 175 “wow” reactions (7.43%) resulted in a registration. Now we’re getting somewhere.

Of the 13,000 post likes, 971 (7.63%) would result in a registration. I’d consider that significant!

Facebook Analytics Funnels

How about “love”? Once again, it’s the top performer. This time, 68 of the 709 people (9.6%) who “loved” a post ended up registering on my website. Feel the love!

Facebook Analytics Funnels

Post Reaction to Purchase

Sample size becomes a bigger issue when we measure post reaction to purchase, but let’s take a look and see what we can make of it.

Of the 13,000 people who reacted to a post on my Facebook page, 86 of them (.65%) resulted in a purchase. Once again, this isn’t a conversion rate for promoting product since I disproportionately promote content. However, it gives you an idea of how many of those who react ultimately buy from me after the fact.

Facebook Analytics Funnels

No sales came from the 22 combined “angry” and “sad” reactions.

The “haha” reaction resulted in a single sale (likely the same person who registered).

“Wow” was productive as sales resulted 1.71% of the time. However, with total sales of 3, one or two sales here or there significantly impacts the results.

Facebook Analytics Funnels

The “like” reaction was most common, and it resulted in 83 sales (.65%).

Facebook Analytics Funnels

Finally, the 709 “love” reactions resulted in 7 sales (.99%). Somewhat more significant than “wow” due to sample size. Consistently more valuable than “like.”

Facebook Analytics Funnels

Facebook Analytics Funnels: Post Comments

Now that we have an understanding of the impact of post reactions on website actions, let’s take a look at some other options for the top of our funnel. First, let’s look at how often a post comment results in a page view, registration, and purchase.

There were about 2,000 people who commented on one of my page posts. About 58% of them would then view a page on my website. You may recall that the “love” reaction resulted in a view 61% of the time.

Facebook Analytics Funnels

A post comment resulted in a registration 7.81% of the time. This is consistent with the value of a post like (7.63%).

Facebook Analytics Funnels

Finally, 1.07% of post comments resulted in a purchase. This is the most significant result of a comment as it surpasses both the “like” and “love.”

Facebook Analytics Funnels

Facebook Analytics Funnels: Post Shares

There were about 2,000 people who shared one of my blog posts. Let’s take a look at the likelihood of these people to view a page, register, or purchase…

  • Page View: 50.08%
  • Register: 8.71%
  • Purchase: .55%

Facebook Analytics Funnels

I find this surprising. While a post share is valuable because it results in more people seeing it, this action doesn’t make the person sharing the post any more likely to ultimately view a page, register, or purchase.

Of the three, only the registration happens at a higher rate than post comments. Meanwhile, the post “love” outperforms shares in all phases.

Facebook Analytics Funnels: Messages Sent

One more, okay? I’m curious if those who send me a private message are more likely to perform these actions. There were a total of about 4,000 people to do so.

Here’s how they break down:

  • Page View: 62.17%
  • Register: 5.98%
  • Purchase: 1.31%

Here, those who send me messages are very likely to view a page of my website and purchase, at least compared to all other actions. For whatever reason, they aren’t more likely to register.

Facebook Analytics Funnels

It’s possible that this is at least partially attributable to staff being likely to refer people messaging us to either a blog post or a product.

Now What?

We could do this all day, right? So, what can we do with this information?

Well, here’s a breakdown of the top performers by website action…

Page View:

  1. Messages Sent (62.17%)
  2. LOVE (61.07%)
  3. Post Comments (58.44%)

Registration:

  1. LOVE (9.59%)
  2. Post Shares (8.71%)
  3. Post Comments (7.81%)

Purchase:

  1. Messages Sent (1.31%)
  2. Post Comments (1.07%)
  3. LOVE (.99%)

Based on this data, it would appear the most valuable Facebook actions for me would be messages sent, post comments, and the “love” reaction. It provides perspective on the value of the activity I’m getting on my Facebook page. I should value messages sent, post comments, and “love” over others.

We could actually take it a step further and start assigning a value to each action. I know that there have been more than 3,700 total comments on a post during the evaluated time period, leading to 82 purchases for $13,200. We could then roughly value a post comment at $3.56.

Facebook Analytics Funnels

These examples are just scratching the surface. I encourage you to build your own funnels. If you have the volume, you can even filter post comments, shares, and reactions by the actual post…

Facebook Analytics Funnels

Metric Benchmarks

I know what one of the first questions I’m going to get on this: “What benchmarks should I use for my funnels?”

Be careful here. There is a long list of factors that contribute to the numbers I’m getting here. Type of content I share, quality of audience, advertising, level of focus on conversions, email funnels, industry, audience overlap between Facebook and my website, and a whole lot more.

My numbers are neither good nor bad. They are simply my numbers and should be taken in context with everything I’m doing. You should do the same with your own numbers.

Your Turn

What was intended to be a simple blog post became complicated in a hurry. The bottom line is that you can uncover some valuable information within Facebook Analytics Funnels. You just have to be willing to dig!

What types of funnels are you creating within Facebook Analytics? What surprising results are you finding?

Let me know in the comments below!

The post Facebook Analytics Funnels: Value of Reactions and Page Actions appeared first on Jon Loomer Digital.


Source: Jon Loomer

Facebook Analytics Funnels: Value of Reactions and Page Actions

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Orignal Article Can Be Found Here

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