Welcome to our Daily Huddle episode number 33.
First off, Merry Christmas and Happy Holidays to everyone who is watching right now. On Christmas day which is the 25th on Monday and Tuesday which is the Boxing Day in Canada and it’s actually a holiday here so I’m not going to be on for our daily huddle since that is holiday. I’m just going to spend some time with my family and get some “ME” time and refresh myself so I can prepare myself for the New Year. With that being said, this is the only time that I will actually say, “You know what, relax go have fun with your friends and family. Go celebrate the holidays but once this is all done it’s time to get your butt back to work.”
I’m not going to keep you guys for long. I’m just coming on because I have promised to answer five questions every single day. For those of you who are first time to join us in our daily huddle, I answer five burning questions that have been submitted to us on my website at www.fredlam.com/ask. If you have a burning question, you are stuck, or you have something that you need advice on simply let me know inside that form and I will get your question featured. There’s one important thing that I want to talk about which is profit with autoresponder for Shopify store and I’ll elaborate that a little bit inside one of the questions that were actually given to me.
[0:03:26] Question 1: 1. My question about the CPM, the CPM is too high in USA and the reach very low even if I target an audience size between 1M and 2M. How do I reduce the CPM and boost the reach? 2. I have a new store (new pixel) i started my ads with WC VC, now i want change it to purchase i have a good cpm , so i ask you if i should just edit adset WC VC to WC PR or create new adset with WC PR ?
Let me dive right in to the question first so that you guys can actually prepare yourself for the holidays. The first question is by Imran. Imran said,
1. My question about the CPM, the CPM is too high in USA and the reach very low even if I target an audience size between 1M and 2M. How do I reduce the CPM and boost the reach?
2. I have a new store (new pixel) i started my ads with WC VC, now i want change it to purchase i have a good cpm , so i ask you if i should just edit adset WC VC to WC PR or create new adset with WC PR ?
The answer to the first question:
Here’s the thing, the reach is always going to go hand in hand with the CPM because the higher the CPM is going to be, the lower your reach is going to be. With that it’s not like your reach is very low, it’s just that because of your daily budget that you have that’s why your reach is not massive because the CPM is expensive. Again, CPM is rising and it didn’t hit peak in Q4 of every single year. It is a known thing because of several reasons, number 1 people are trying to actually spend all their money before the year ends and also a lot of people are trying to increase their sales through holiday promotions and big brands are advertising heavily in Q4 at the same time.
Let’s say that I have a good product but it just that the CPM is not working out for me, how can I reduce the CPM? The reality is that you can’t control the CPM. Like I said in yesterday’s episode every single advertising platform is auction-based, the more advertisers there are the more it is going to get expensive. So, in order for you to actually profit from high CPM, you have to make sure that you have a high click-through rate on your ad so that you can actually justify the CPM.
There are some tricks that you can use to lower your CPM. Number one is maybe go after another country. That targeting is working in the United States but the CPM is too expensive well try to go after maybe Canada or UK or Australia or somewhere else and see and compare if those countries actually work out for you. Obviously if it works in the United States, chances are it’s going to work in all these other English speaking countries too and you want to basically test it out and see if it works or not.
The other trick that I have is to pull out your ad report and look at the age and gender reporting. You will see a trend which is typically as follows, the cheapest placement is going to be 18 to 24 years old. Then it starts to go up a little bit from 24 to 34 and then 34 to 45, it hovers around the same as 24 to 34 but once it hits 45 plus, so 45 plus to 54, 54 to 64 65 plus, those placements are a lot more expensive. I’m not sure what niche you are in but if you actually take a look you may actually have great results with the younger demographic but the older audiences which is where all the CPM is majority most expensive is affecting your campaign. And if it is not, then guess what just turn off all the older audiences that’s not working for you and affecting your CPM. You will see under the age report and even in gender that the CPM has a drastic difference in them so you have to dissect your data to figure out where you can eliminate placements or basically age and gender which is affecting your CPM and the overall of your campaign
These are the two tricks that I have for you if you’re looking into lowering your CPM but honestly it’s just again all auction-based. The more people who are spending more money on ads, the more expensive it gets.
The answer to the second question:
Now, to your second question, I have a new store which is new pixel. I started my ads with website conversion based on view content now I want to change it to purchase. I have a good CPM so I’m asking you if I should just edit ad set view content to website purchase or create a new ad set for website purchase.
What I would actually ask you to do is to create a new ad set. At the same time, if you already have something that is working then there’s no point of basically changing what’s breaking. If you want to really test out your website conversion based on purchase, you don’t have to edit your ad set. You have to create a new ad set and take a look at what it’s doing, how the performance is and basically put a lower budget in there and compare the two to see which one performs better. That’s what you have to do. You don’t have to reset the algorithm to the existing ads which are working well because it’s going to get Facebook to relearn and optimize your stuff at the same time.
[0:08:21] Question 2: Do I need to have all the Auto response emails written up before I open our store?
Moving on to the second question by Sanja Maxwell.
Do I need to have all the Auto response emails written up before I open our store? Thank you , red!
Great question! The answer is if you were to ask me I would say yes but it depends on where you are at and if you’re trying to figure things out. Do you really need an autoresponder email series to have it in placed before you start your store? The answer is NO. However, you need to understand one thing which is very important, this autoresponder emails are going to help you make more profit because you have already paid for your ads to acquire a customer or got their email address. If they actually bought from you and then you just stopped communicating with them, guess what? Of all the noises out there in the market place and there are so many competitions out there then your customers are going to forget about you if you don’t basically be in front of their faces. Don’t abuse it though, you email and communicate them and build a relationship with them.
Here’s what I would suggest, you don’t really need to build like a full blown one but I would suggest you have at least four or five autoresponder series in place for you so that you don’t actually have to worry about it until later. So, you actually have some kind of relationship building or selling more products through your autoresponder.
When it comes to autoresponder here’s what I usually do, a lot of people asked like what do you live in your autoresponder? What should we do? etc, etc. The first one is going to be all about an introduction. You have to introduce yourself on behalf of the store and say thank you for your purchase. You basically tell your story. People love stories. That’s what people love to listen to even if it’s going to be a webinar, if it is whatever kind of source people love stories. You want to talk about the story on why you’re building the store, what you’re passionate about so you are building a rapport with your audience and then you say what your store is all about, what it sells etc. etc. That’s always the first one.
Then what I would do is send some content emails that will tie in with a product that you can actually have for sale in your store. On every single email, you have to link it back to either a product or your collection page so that there are call to actions where people go back to your site and buy your product. If you have a really amazing product and you’re doing a lot of sales with it, I would even create a specific autoresponder series for that particular product. I will create again an introduction email and then for the following other emails I’m going to basically hype it up and make them excited about the product, for example what to expect, what they’re going to get, what you can do with your product etc. etc. because that builds relationship so down the road when you want to sell more other stuff through emails it would actually work. That’s what you have to do. You don’t have to basically think like Walmart where you have your customers go inside, they pick the stuff, go to cashier and they leave and you don’t hear from them again. You have to build that relationship and it’s actually very important. That’s how you can standout with your competitors and that’s how you build a sustainable business which is having a relationship built with your customers and you do this through autoresponders. Again, I encourage you to actually have four or five autoresponders series just to have them at play. Maybe spread it out in terms of every other day so that will give you like a ten-day window already and then you can go back and create a longer autoresponder series. Again, keep in mind; emails don’t cost any money for you to send. When you’re able to acquire sales through email, guess what? Those are just pure profit right into your pocket without paying for inward expenses.