Starting in November I had to lower my own advertising budgets because there was a high demand which was driving prices up.
I ended up dropping my own advertising to 1/8th of the prior levels.
But now that the holiday season is winding down I’ll be starting to increase it again.
You should treat your own advertising budget the same.
- Decrease it when you see campaigns aren’t turning a profit.
- Increase it while they are making a profit.
Don’t just set our budget to a fixed amount and hope that it does okay. Actively manage it to ensure you’re profitable.
Understanding your customer’s behavior, especially with their first order, is important to determine if your advertising is profitable.
In an ideal case you’re making back your advertising spend right away on the first order.
Using Repeat Customer Insights it’s a simple process to get a detailed look at your customer behavior.
You can also export your best customers to a file that you can import into Facebook as a custom audience to get even better new customers.
Use cohorts to find out who the best customers are in your Shopify store
Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.