The CLV eCommerce Audience Hack For Turning Facebook Ad Spend into 10x Profit

Facebook is fast becoming one of the most effective ways of reaching your best customers online.

According to Statista, there are 2.6 billion active users on Facebook, which has continually risen over the years. 

So, this means that no matter what you’re trying to promote, you have endless opportunities to find both new and existing customers via Facebook advertising.

Whether you’ve been running ads for years or are just getting started, we want to share an expert idea that has, on average, nearly doubled our clients’ return on ad spend when compared to the industry average. 

It all boils down to this: Who you choose to target.

One of the greatest benefits of advertising on Facebook is detailed targeting — there are unlimited options for: 

  • Retargeting
  • Re-engagement
  • Custom audiences
  • Detailed Interests
  • Lookalikes

Once you’ve chosen a targeted audience, you can focus on creating creative headlines and copy to convert users. 

But, first, let’s talk about how you can find your best audience.

The Importance of Finding New Customers

While remarketing is important for website visitors and shopping cart abandonment, we also love taking advantage of prospecting for new users through lookalike audiences.

If you aren’t familiar with lookalike audiences, this is how it works — Facebook looks at the existing lists or segments of your best customers and utilizes them to find a new group of the most similar users on the platform.

When building these custom audiences, you can decide from users who complete certain Facebook pixel events

How to create a lookalike audience from a Pixel:

  1. Create a custom audience in Facebook Audience Manager
  1. Select “Website” as the source
  1. Choose the event and a date range you want to pull users from
  1. Name and save your audience

 We’d recommend choosing from high-intent events such as:


● Initiate Checkout

● Add to Cart

● View Content

There is also an option to create a value-based lookalike that’s formed on past purchase values, and Facebook recommends this when looking for your best customer. 

However, we’ve found a way to generate a more targeted and high-value list for creating custom audiences. And not only on Facebook but on other ad platforms as well.

We use our 1:1 data platform, Tadpull Pond Software — creating customer lifetime value (CLV) lists and uploading them to ad platforms for lookalikes. 

Using First-Party Customer Data

Using first-party customer data is extremely powerful for creating lookalike audiences. 

First-party data is collected directly from your customers and helps you make smart data-driven decisions. We collect first-party customer, inventory, and campaign data through our Pond eCommerce Software

To do this, we begin by finding our best customers. 

We identify these individuals not just from the value of one purchase, but from their predicted lifetime value — an estimate of how much monetary value they’ll have over their lifetime with the company.

Estimating your average customer lifetime value (CLV) is critical because it allows you to:

  1. Drive growth, by continuing to increase the value of existing customers.
  2. Understand how much you should be willing to spend in order to acquire a customer.
  3. Assess what characteristics your most valuable customers have, and seek out similar individuals.

So, instead of simply using a list of previous purchasers, we can identify which of our current customers are going to have the highest value over their lifetime — using that segment and leveraging Facebook to find people similar to them. 

Moreover, we know just how much we should be willing to spend to acquire them as a customer.

And the more customers on the list uploaded to Facebook, the more accurate the lookalike audience will be. 

Tadpull Insight: We recommend using a minimum list size of 1,500 to get the best match results since it’s possible that only a fraction of those users are active on Facebook.

Tadpull’s Returns vs. Facebook Averages

Although it can vary a lot by industry — and depends on product margins — generally, a good return on ad spend (ROAS) to shoot for on Facebook is a 4:1 or 400% return. 

Meaning, you spend $1,000 on ads and get $4,000 in return.

On average, according to our Facebook ad performance across our clients in the last 90 days, our CLV lookalike audiences have obtained 990% ROAS when looking at a 7 day click and 1-day view attribution window — more than doubling what Facebook considers to be a good return.

Try It Today

There is so much power in using 1:1 customer data for Facebook audiences. 

By taking advantage of your data and using the Tadpull Pond Software, we’re confident that you, too, can achieve ROAS above the industry benchmark.

Featured Image: freepik