The cost of advertising on social media is rising. It’s super competitive out there and small business owners are finding it harder and harder to compete, to be seen and to get a good return on their advertising spend.
But don’t lose all hope.
It is still possible to make sales on social media. We talk a lot about getting your marketing message right so that you have the best chance of success with your advertising campaign.
But there are a couple of other things you can consider as well:
1. Look at ways to increase your average order value. If you are looking at spending $50 to acquire a new customer on social media and the average order value with you is only $45, then this isn’t going to cut it. Take a look at your offering and see what you can do to get them to spend that little more with you. Can you add in a bonus offering? A complementary product? Extend the lifetime of the service you are offering? If you could push your average order value up then you will be closer to breaking even.
2. Which leads me to my second point. If you can break even on a customer's first purchase with you, it may make you feel a little sad that you didn’t actually make any money. But! If you knew they were going to buy from you 5 more times this year with the same average order value then you wouldn’t care! Always think about the lifetime value of a customer that you are acquiring and make sure you have things in place to take them on a journey with you so that they come back and buy from you again and again.
So tell me, who actually monitors what return they are getting on their social media advertising?
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