A Strategy for Facebook Marketing for optimised Customer Acquisition for Daily Deal/Couponing Website – Groupon, Snapdeal
The Slides explain the detailed process, and the overall strategy to optimise for conversions. Acquiring 1000 customers a day – via Facebook.
This case could be used by online marketers worldwide to optimise their Costs to acquire customers / Lead Generation costs and ensure that the customers acquired are the ones which potentially bring Maximum Revenue to the Business
Facebook Marketing Strategy for Customer Acquisition for Groupon, Snapdeal etc
1. The Facebook Social Acquistion
Acquiring 1000 customers a day – via
Facebook-
A Strategy for Facebook Marketing for
optimised Customer Acquisition for Daily
Deal/Couponing Website – Groupon, Snapdeal
3. Methodology 1
The Facebook-Snap Paid Ad-Purchase Model
For effective digital Media
campaign, optimise,
CQI(campaign quality index),
which defines quality of
campaign =k* sq((eCPA))*time/
CVQ, where CVQ is customer
value quotient defined by (avg.)
(number of transactions*avg
value per transaction)
Lower the CQI, the better the
campaign. Eventualy the whole
budget be in the inverse ratio
of the CQI
4. The Facebook-Snap Paid Ad-Purchase – Set A
The Generalist Campaign – Targeting the general deals/Product Categories
Vertical Sub-Vertical Permutation Total Example
/Campaigns variants/factors ads
Local Deals •Health & Beauty •Geography(5 Cities)
•Restaurants •Age(3 sets) 80
•Shopping •Gender(2)
•Entertainment •Interests(for eg. Beauty, health etc)
•Misc (5 broad)
Travel •National Geography(5 Cities, one for the rest
•International of India)
15
Age(3 sets)
Gender(2)
Interests(for eg. Adventure Sports)
(3)
Products •All Geography(5 Cities and rest of India)
•Mobiles Age (3 sets)
150
•Perfumes Gender (M/F)
•Men's Apparel Interests(for eg. Shopping, Belts()5
•Women's Apparel broad
•Watches
•Jewelry
•Cosmetics
•Bags
•Personal Care
•Computers
•Sunglasses
•Toys
•Accessories
5. The Facebook-Snap Paid Ad-Purchase – Set B
The Specific Campaign – Targeting the Specific deals with high View to buy ratio(website),avg
margin choose 200 such products and make permutations according to factors defined earlier.
Make 350 campaigns through these
Product/ Impre Buys Buy to Avg. Margin Product Campaign
Ray ban and Gold gym seem
Deal/Ca ssions View*100 qualification like one of the best campaigns
mpaign (=Buy to View to be advertised here.
ratio*avg margin),
Orka Bean 300 4 50
bag
1.333333 66.66665
Big Chill 225 7 50
Restaurant
3.111111 155.5556
Gold Gym 900 15 300
1.666667 500.0001
Ray Ban 1500 59 150
sunglasses
3.933333 590
Malaysia 2150 15 500
Travel
0.697674 348.837
Note :: The examples above are just random samples and the impressions, Buys are hypothetical just for demonstration
purposes. Higher the (Buy to View ratio*avg margin), the better the product stats or the product qualification,
6. Set 1 +2 A/B test Samples
Case Campaign 1 :: Target men near valentines, age group 25-30, in relationship/married exclusive shopping
deals in the city with interests in retails shopping to gift to spouse
Case Campaign 2 :: Target women in metros during summer, age group 27-40, in relationship/married to
give them a deal International travel around the new year
Case Campaign 3 :: Target all on the mothers day and ask them to gift a specific item like Tanishq Watches
Coupen card
Note :: for all the campaigns, its important to assign the initial budget to $ 100, which would be enough to record the effectiveness of
the campaign
7. Deep View Campaign Selection
Campaign CPC eCPA Time to CVQ CQI
consume
budget(d
ays)
Campaign A •.15 4.2 10 400
0.441
Campaign B •.18 8 6 500
0.768
The best campaign is because
Campaign C .20 5.5 5 2500 of lowest CQI. The overall
budget is distributed in the
ratios of .441:.0605:.768
0.0605
Note :: The figures like CPC, eCPA is in dollars. Accordingly the customer value quotient is calculated in rupees. The lower the
CQI(campaign quality index), the better the campaign
8. Looking Ahead – Methodology
1
•The ultimate Purpose is to acquire 1000 high CQI customers. We define CQI as number of
shopping in a 4 month period*avg value of transaction as frequent customer plays an
important role
•Out 600 Campaigns, after 40 day period, we would shortlist 100 high performance
campaigns Running on budgets in inverse proportion of CQI’s and around 20 flexible
campaigns to accommodate special occasions, new experiments etc.
•An average of .20$ CPC and 15$eCPA, it would take 15000$ to acquire 1000 fans a day
9. Methodology 2 – FB Snap Social buyer
Method 2 : . Facebook Snap-social shopping (Checkout-Fb wall)
On every successful transaction
made by a user, He would be
asked to post it on his
facebook wall, in return for
Snapcash
Earning snapcash is a function
of the value of item bought by
the customer*the Social Graph Post on you Facebook wall to
of the customer earn upto Rs 50 in snapcash
When Friends see me buying,
they have a probability of
buying it too
10. Methodology 3 – FB Snap Rewarder
Case Campaign :: Target people with Birthdays within a week and make
them Snap-customers by giving away snapacash on birthday
Clicking this ad would initiate a snapdeal facebook
app which would ask for his email ID and phone
number and automatically credit cash into his
account
Case Campaign :: Target recently moved people(shifted from another city),
the ones actively interested in shopping.
Clicking this let them explore recent deals in the city
also giving them one time snapcash. Only recently
moved people in cities are targeting in this method
11. Definition Glossary
eCPA = effective cost to acquire a customer(here the cost to make him purchase once)
CVQ = Defines as the customer value quotient(avg.)(number of transactions*avg value per
transaction). CVQ is the quality of the Customer acquired for a deal site like snapdeal.
An equal priority is given t the number of purchases in a 4 Month period to the
average size of those transactions to compute this.
CQI = CQI(campaign quality index), which defines quality of campaign =
k*(sq (eCPA))*time/CVQ
Buy to View Ratio = On snapdeal’s website, the products deals which have high purchases
per impressions got.
Product qualification = (Buy to View ratio*avg margin) This determines the most profitable
Products which would generate maximum money per dollar spent.