Tactics for Building Customer Centric Facebook Advertising Campaigns

By Lauren AlexanderOctober 27, 2014

You can increase your revenue by focusing on your brand’s most profitable customers, simultaneously attracting profitable new customers and saving money in your budget for additional outreach. Do I have your attention, yet? Good—here’s how you do it.

To start, your brand needs to take a hard look at its advertising practices, budget, and strategies and ask, “Are we using a customer-centric approach in our marketing?”  Customer Centricity author and Wharton Professor, Peter Fader, explains, “Customer centricity is about identifying your most valuable customers—and then doing everything in your power to make as much money from them as possible and to find more customers like them.”1

Facebook, for example, is a powerhouse of customer segmentation and targeting. While most online advertising provides targeting with about 38% accuracy, Facebook on average, delivers 89%.2 You can directly target your most valuable customers using the myriad of targeting options that Facebook offers. Target by demographic, age, gender, geography, family status, precise interests, and even create campaigns using your own customer database. You can even reach people who have already visited or taken a specific path on your website.

This article will cover three campaign objectives and tactics utilizing the customer centric model on Facebook.


Campaign 1 Objective: Drive Sales

When it comes to driving sales, there is more to it than simply advertising to attract new customers; it’s not just about driving your current client base to purchase new products. As Fader describes it, “The customer centric model—a model based not on expertise in the realm of product development, but rather on a deep understanding of what customers actually want, when and how they want it, and what they are willing to give you in exchange.”1

Facebook campaigns will give your brand more insight into product development than any other media outlet. Additionally, your cost per acquisition is much lower. It costs 68% less to get a customer on Facebook than other online channels.3 Moreover, you can test new promotions on Facebook, cheaply, before scaling them out across your entire portfolio. Measuring click-through-rates, likes, shares, and comments provide key metrics—and an overall score for each promotion. To optimize your strategy, keep in mind that your most valuable customers may not respond as powerfully to a blunt 50%-off coupon as they would to, say, a 2-for-1 deal. Or you may find your most valuable customers don’t need to be incentivized to buy your product at all; rather, your marketing message just needs to be catered to the values of the product.

Expert tip: Exclude bad or low-profit customers from your advertising campaigns using your own data and creating custom audiences.


Campaign 2 Objective: Drive Brand Equity

By engaging your customers in a conversation, branded campaigns provide an opportunity to build an emotional connection between your brand and customers. These types of campaigns strengthen brand equity, which yields increased brand loyalty, higher retention rates, and less price sensitivity for customers.

Tactically there are many ways to build successful brand equity campaigns on Facebook. One successful method: create a campaign based on a brand’s charitable/community engagement, targeting recent website visitors. This messaging will deliver a glimpse into the brand’s personality, making it more than just the products or services it provides. Another tactic: share jokes or funny pictures that are somewhat related to the brand. The primary goal here is to build a relationship with your customers and reveal aspects about the brand that aren’t inherently obvious.

Expert tip: Select images that tell your brand’s story. Images that revel your brand’s personality typically have higher click-through-rates.


Campaign 3 Objective: Drive Retention and Repurchase

Marketing strategy experts Roland T. Rust, Valarie A. Zeithaml and Katherine N. Lemon define the Customer Equity concept in their insightful book, Driving Customer Equity. “Through greater understanding of the customer, the firm can make it easier for the customer to do business with the firm, perhaps even customizing the purchase and consumption experience for the customers.”4

Keeping customers engaged and preventing them from switching to your competition is the key objective for retention campaigns. By dividing your transaction periods, you can actually build your target audience and segment your customers. For example, 30-day, 90-day, 6-month, and 1-year periods are accompanied by unique, creative messaging for each period. 30-day lists get loyalty program invites, 90-day lists receive a reminder campaign to reorder, 6-month lists get heavy savings coupon, etc. Another way to build a retention campaign is by promoting a loyalty program with contests or events on Facebook.

Expert tip: Test specific times of day to run your ads using Facebook’s Ad Scheduling feature available in the Power Editor.

To recap, Facebook's targeting offers the greatest opportunity to identify and segment distinct groups of people and drive customer centricity. Generating interest, leveraging demographic data, and creating custom audiences around your brand allows you to fine tune customer-specific messaging to each customer. Now, with over 699 million people worldwide on Facebook daily, driving customer centric campaigns on Facebook has never been more scalable—and more promising.




1Fader, Peter. Customer Centricity. Philadelphia, PA: Wharton Digital Press.



4Lemon, K.N., Rust, R. R., & Zeithaml, V.A. Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy. New York. NY: The Free Press. 2000


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