3 Ways to Lower CPA Using Email Marketing and Facebook Ads
Running direct response campaigns on Facebook is great… until they stop working and your CPA skyrockets for unclear reasons.
If your store is struggling to maintain a reasonable cost per acquisition (CPA), your Facebook funnel will break each time you try to scale up ad spend; or worse still, you will continually create hit-and-miss campaigns which end up costing you $$$ in ad spend and hours of time. Maybe it’s time to try a different approach?
And that’s exactly what I’m going to lay out in this article.
I’m going to show you how combining email marketing with Facebook can lower your CPA and let you scale up much more easily.
Grab emails, not conversions
Obtaining a prospect’s email address is a lot easier than getting someone to place an order.
If you’re spending thousands of dollars per day on Facebook and not getting the results you hoped for by using direct response, consider pivoting your strategy to collect emails, not one-click conversions.
Direct response marketing is not getting any easier on Facebook. As more businesses flock to the platform, ad inventory shrinks and the cost of ads grows. Not a future-focused strategy.
And while direct response still works REALLY WELL in 2018, your marketing team may not have the experience to compete in the direct response area. That may be why your CPA is too high or why you’re getting inconsistent results.
Focus on obtaining a prospect’s email address instead. With the right email strategy behind the scenes, you can lower your CPA while spending less money on Facebook by merging Facebook and email together.
Here are three ways you can acquire high-quality leads through Facebook and turn them into customers using email.
Dynamic product ads (DPA) to collect emails
Did you know that you can now run Lead Ads campaigns using dynamic product ads?
Well you can, and you should!
If you’re running unprofitable DPAs at various points in your funnel, such as to cold audiences or custom audiences who are further out of your retention window (7-21 days), combine Lead Ads with DPAs to build your own email machine.
Consider showing these audiences a time-sensitive voucher using DPAs and clearly state in the copy that they are signing up for a voucher via email and not being re-directed to your store.
Facebook users are conditioned to think carousel ads will lead them to a product page, so it’s important to state in your copy what will happen next.
Now you’ll be able to create a series of follow-up emails around the product offer and re-engage with the lead several times without having to pay per click through email.
I like using this strategy during office hours when people are on Facebook surfing at work or during their lunch break. They are not in a buying mood but are simply using Facebook to cure their boredom.
Instead of getting weak engagement from people who may be bored, I now have their email address to hit them up later when they are at home or on the weekend.
The objective here is to acquire email leads at a profitable cost per lead (CPL) and through email marketing turn them into paying customers.
Klaviyo will inform you of how each invaluable prospect engaged with your emails, which links they clicked, which products they viewed and whether they added anything to their cart or checked out.
This data will help you refine your email funnel, Facebook ad strategy and what type of email series to show them next. This type of funnel provides more data to work with, allowing you to troubleshoot and optimize better than going with direct response alone.
Choosing the right campaign objectives for lead generation
There are a number of ways to optimize your Facebook funnel to collect emails. The ones I like to use more are: Traffic Engagement, Video Views, Lead Generation, Messages, and Conversions.
Here’s how and when to use each one.
Conversions – This is usually the most effective and consistent objective, as your pixel fires 100+ per week for opt-ins. It is best combined with a specific landing page asking for their opt-ins, but I’ve seen this work by sending prospects to a product page and then showing the right exit pop-ups if they are about to leave.
Traffic – If you’re not getting 100+ pixel fires per week for opt-ins, then using the same approach above but with the traffic objective is my next go-to method. I’ll usually test conversion and traffic objectives against each other as sometimes traffic will yield a much lower CPL than conversions.
Engagement – Driving leads using the engagement objective is, in my opinion, the most effective way to generate leads at a super low CPL. It’s also the most difficult.
Because you’ll need to create a piece of content that can go viral, and with Facebook updating their news feed in 2018, it’s getting harder.
This engagement post from food delivery service Paleo Robbie has reached a whopping 125,000+ users organically:
It’s a straightforward blog post that educates their audience about foods to eat or avoid during the Bangkok heatwave.
Within the blog post, they have embedded forms asking prospects for their email addresses in exchange for a voucher. For $10 per day in ad spend they gain 11.8 leads per day ($0.84).
The secret to achieving results like this with viral content and the engagement objective is a three-part recipe.
Relevance – Paleo Robbie is a local business operating in Bangkok. Their post is relevant to everyone living in Bangkok, because everyone goes outside.
If this article was titled ‘5 Foods to Eat after a CrossFit Workout,’ it instantly becomes irrelevant for most of the city.
Trending topic – The heatwave is something their audience can relate to. It’s 107°F and you cannot go outside without a small risk of catching fire.
A good way to find trending topics in your niche is to visit niche Facebook groups and search for topics that are receiving a lot of engagement.
It has to be a trending topic because you want others to tag their friends and share it. This is where you’ll get that organic reach which will lower your CPL.
Product-related content – Paleo Robbie is giving practical advice on food and health. Paleo Robbie is an online food and grocery store, so people who click the article to learn more about the products are their ideal prospects.
This is the perfect piece of content, and best of all they can reuse it every year when the heatwave comes back.
Messages – I think many brands are sleeping on this feature. Messenger ads and bots can acquire prospect emails on autopilot. The latest Messenger update now pre-selects a user’s email address to enter when a page asks a question where the user is asked to share their email address.
There are many ways you can go with Messenger ads, from combining them with a voucher code to providing a free lead magnet to adding them to your ManyChat automation and syncing that up with Klaviyo.
Increase email open rates with Facebook
Email open rates within the e-commerce store sector is around 16.75% for small businesses and 20.5% for enterprises.
Add in re-sends and you may get another 3-5%.
75% of prospects never engage with your emails, but they will with your Facebook ads.
Klaviyo syncs in real-time with Facebook custom audiences, so each time you send out a major sales email, you can also serve an ad to everyone you emailed and redirect them to a specific page on your website that contains the exact same content as the email mail-out.
While only 25% of prospects open your emails, a much larger percentage of them will view your ad, allowing you to reach more of your list.
Usually, these custom audiences are small in size. If your email list has fewer than 5,000 subscribers, go with the reach objective to limit frequency; otherwise they may end up seeing the same ad 5-6 times when optimizing for clicks or conversions.
You won’t need to spend more than $10-$30 on this type of campaign, and you’ll be able to reach a lot more people on your list who didn’t engage.
Are you thinking about email marketing and Facebook?
Don’t get me wrong, if you’re running direct response campaigns and crushing on Facebook, keep doing your thing.
We focus specifically on direct response strategies for Facebook and Instagram, and we do it better than anyone else. However, I’ve met hundreds of e-commerce business owners who use direct response ads on Facebook but cannot achieve a reasonable CPA or have trouble when it comes to scaling.
If you’re struggling to gain traction with Facebook ads, consider adding email marketing funnels to your Facebook ad strategy to lower your CPA.
How are you using email marketing and Facebook?