𝐌𝐚𝐲 𝐒𝐭𝐚𝐫𝐛𝐮𝐜𝐤𝐬 𝐥𝐨𝐲𝐚𝐥𝐭𝐲 𝐜𝐚𝐫𝐝 𝐤𝐚 𝐧𝐚 𝐛𝐚?

Hindi ka ba nagtataka kung para saan yung Starbucks loyalty card?

Hindi ka ba nagtataka kung para saan yung SM Advantage card?

Hindi ka ba nagtataka kung para saan yung Petron loyalty card?

Hindi ka ba nagtataka kung para saan iyong S&R loyalty card?

I could go on and on listing businesses with loyalty cards.

Balik tayo sa Starbucks.

When you enter their premises and order your drink, they usually ask if you have a Starbucks loyalty card to earn points.

Then they’ll explain the benefits of having one, mainly how points accumulate over time whenever you buy from them.

This is a classic marketing strategy many businesses use because it helps them track how often you visit.

Now, let’s relate this to your Facebook ad campaigns.

When you run an ad, there’s a reporting column that shows “ad frequency.”

It’s a soft metric that tells you how many times your target customers have seen your ad.

When a purchase is made, there’s also a reporting column for “website purchases.”

Now, here’s the tricky part: you need to ask yourself, is it a one-time purchase or a recurring one?

This will determine the lifetime value (𝐋𝐓𝐕) of that customer.

If you’re selling a one-time purchase product or service, your profit margin needs to be solid enough to make the front end profitable.

Otherwise, if your profit margin is too thin, you won’t stand a chance in the Facebook auction.

Here’s the caveat: It’s okay to lose money on the front end as long as you can sell more on the back end.

That’s why I don’t work with clients who don’t understand the importance of LTV.

The purpose of loyalty cards isn’t just to give you points as a consumer.

The ultimate goal is to encourage you to keep coming back and buying more, increasing their LTV.

So, if you’ve reached out to me to run your Facebook ad campaigns and I declined, please don’t take it personally.

It’s not about you; I just don’t think we’re the right fit to work together.🙂