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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
THE Facebook-user Acquisition Strategy
                            Overview
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
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
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,
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
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
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
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
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
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.
@Me




Mail : s@getmyform.in
Call : +91-9818070682

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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
  • 2. THE Facebook-user Acquisition Strategy Overview
  • 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.
  • 12. @Me Mail : s@getmyform.in Call : +91-9818070682