But at the same time, it is also a channel that has become too noisy, owing to the increasing number of users and the amount of content being posted every day. Add to that the increase in the number of businesses using it for marketing and promotional purposes.

Is it still effective then? YES.

All you essentially need is a clear long-term plan and an understanding of all the variables involved. You also need to ensure all aspects of your digital marketing strategies align with the long-term plan..

To understand this better, in this blog, we have shared some takeaways from the above video on how to double your eCommerce revenue with the help of data.

What does revenue growth really mean?

To put it in simple words, revenue growth is the amount of money your company makes over a predetermined time compared to the previous, identical time periods.

Initially your ROI will go down when you try to increase traffic to your website and your overall revenue. However, with a proper structure in place, you can increase your ROI exponentially with time as depicted in this graph below:

Understanding short-term and long-term goals while running Facebook campaigns

Short-term goals are those set for a period of fewer than two months. Long-term goals, on the other hand, are usually set for 3-12 months for Facebook ad campaigns.

Your eCommerce store should have a mixture of both short-term as well as long-term goals.

Just focusing on short-term goals will result in a lower Return on Assets (ROA). It also reduces your chances of gaining organic traffic and retaining the gained customers.

By including both short-term and long-term goals, you can achieve breakeven RoAS, gain more revenue from organic customers, and build a larger audience that is genuinely invested in your brand.

For example, your short term goal could be all about driving more traffic to the website. But your long term goal could be to increase the number of people who follow you on Facebook, in order to organically reach out to them every time you’re promoting a new product or a sale.

Just Facebook ads cannot ensure revenue growth

Most people have the misconception that Facebook campaigns mean Facebook ads only.

There are a lot of factors involved while running Facebook campaigns that are going to help increase your store revenue. So while you actively work on Facebook campaigns, make sure to consider the following factors to achieve the forecasted growth.

If you focus on the following pointers, increasing your revenue by 2x in less than six months will not be a very difficult task.

  • User-generated media
    This is the easiest and the most organic factor involved. Everything that your users say about your store comes under this category. These include the reviews posted and the photos and reels shared on Instagram about your product or service.
  • Your brand media
    As an online store, your online brand presence is of utmost importance. Everything your store puts out on the internet falls under this category. From posting on fan pages to Instagram, to even YouTube are all contributing factors.
  • Brand awareness
    When you cannot reach your return goals in the specified time frames, know that it is important to “reinvest” in brand awareness. Talk about what your brand story is, your vision, what sets you apart from your competitors, and so on to grab the attention of consumers.
    Remember brand awareness is not a one-time activity. It’s always an ongoing task.
  • Organic revenue
    Your store needs to ensure that your organic sales do not fall, even if it does not seem to increase.
  • Referral
    If your store was featured in any blog or directory, it can help generate substantial traffic to your website. You need to try and maintain the conversion rates through referrals over the course of time.
  • Competitors
    While this factor is fairly out of your control, closely studying and analyzing what your competitors are doing is crucial to understand where you currently stand in the market.
  • Product variations
    This is a common problem customers complain about. For instance, if your bestseller or top-performing product is out of stock, it is going to significantly reduce your revenue.
    Always try to restock these products as soon as possible to not miss out on any sales opportunity.
  • Market demand + seasonality
    During the pandemic, the demand for masks increased exponentially. Gradually, the demand reduced. When the second wave hit, the demand for masks started increasing again.

    This is a simple example to show the correlation between market demand and seasonality.

Facebook campaign funnel structure and metrics

Introduced by Avinash Kaushik, the “See, Think, Do, Care” is a business framework to drive new and rapid innovation in their digital strategies.

Here’s what it means -

  • See - You need to let your target audience know about your store, i.e. you need to increase awareness about your brand.
  • Think - This consists of the top of the funnel audience. Basically, people who wish to buy the kind of products your store sells but haven’t visited your store yet. You need to strategically target them to get them to your website.
  • Do - This aspect involves re-marketing your store to users who have already visited your store. Now, you need to persuade them to make a purchase.
  • Care - This includes your recurring customers. They are users who have already bought from your store. You need to strategize on a way to retain them.

The suggested structure will help you to allocate the budget meaningfully, by identifying gaps, and rectifying them immediately. It lets you double your revenue while increasing the return on ad spend, assuming all the other factors are consistent.

Continual testing is how you learn (and grow)

If there’s one thing we always recommend every eCommerce businesses to follow, it is to never stop experimenting with their ad campaigns.

With consumer needs and trends changing every minute, it can be tough to follow through a long term or even a short term strategy. That’s where having data by your side to guide how you navigate through these changes comes in.

Always be willing to experiment with different aspects of campaigns, audience targeting and more based on the performance data. You never know when you spot a winner!

Use Alavi and Scale Without Fear

Developed for small and medium businesses, Alavi is a martech application that performs predicative analytics on your customers’ behavioural data. By combining AI, machine learning and automation, it helps digital marketers better understand their audiences, improve their targeting, and scale confidently profitably.

Alavi has a proven record of helping brands in a variety industries grow their revenue online. It has a very short time-to-value and is easy to setup and use.

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