Fundamentals -­‐ Targeting Selection Physical Product System

Fundamentals -­‐ Targeting Selection Physical Product System Bonus By Rachel Rofé, Stephanie Henry, Keith Dougherty, and Don Wilson Fundamentals -­‐ Targe0ng Selec0on " All right everybody, in this last video we're going to talk about target selec9on. This is the last video in the fundamental sec9on, but it is very, very cri9cal that you understand exactly how to target at first, and then how you're going to build up over 9me in the more advanced videos that you'll see later on. Right now, we're going to be talking about geBng a core audience. We are going to target using market segmenta9on. Now, I had a targe9ng course called AI targe9ng system that came out not too long ago. It covered the basics of this. As 9me goes on and we spend more money, things advance. Our understanding advances. Facebook itself advances. We have to evolve with the changing 9mes. So this is going to be an up-­‐to-­‐date version of that, and how exactly I targeted my business. We're going to focus on the AI tool. Which is the audience insight tool. It's a free tool inside of Facebook that is basically a window into all the data that Facebook gathers on the back end where you don't actually see. We will go outside of Facebook if need be. No one knows Facebook beJer than Facebook. I've been saying that for months now. For probably over a year. So we're going to u9lize that as much as possible. Now we're going to narrow to our core audience for tes9ng. Then scale out as you sell. Why would you go broad on something that's not proven? Why would you go broad if you're brand new into a niche? We're going to test a product within a niche that is contained in our new store. Okay? We are going to market test our product first. We RachelRofe.com Page C2 have key indica9ons along the way. We picked a product that is already sold on another media, maybe eBay, maybe AliExpress. Now we're going to test that with paid traffic on Facebook. An essen9al thing that you have to remember is that if you're doing paid traffic, it's a liJle bit different than say eBay. EBay has it's own ranking system, and you might get a lot of traffic for free, and in doing that might make selling one product easy, right? It might be able to get that product to be sold, and you make a profit off of it. However, you take that same product and you move it over to a paid traffic outlet. If you don't have the ability to convert traffic into a buyer at a reasonable rate to make money off of the item, then it's going to exclude itself from being able to be sold via paid traffic. It's not the same thing. What we are doing is tes9ng something that worked on an external source, like eBay, AliExpress, Amazon, and then moving that into a paid traffic system that we're developing on our store. Right? That's the key difference to understand. We need to test it first, and then move out. Market segmenta9on in the tradi9onal sense involves these four things: loca9on, demographics, psycho graphic, and behavioral. What do those mean? Loca9on obviously is self explanatory. Demographics, your age, gender, ethnicity, occupa9on. Things that describe who you are as a human being. Psycho graphic is your values and your lifestyle. Think again of mountain dew with a gamer, the gamer lifestyle. The values. Think about conserva9ve people, or liberal people, or Chris9an, or not. And then we have behavioral. Think about the paJerns people have in their lives. Think about the price sensi9vity they might have. You know, some people will buy something at 5.99 but they wouldn't buy it at 6.99. Companies adjust themselves to accommodate this. Think about how many different types of cars there are that are rela9vely the same with minor differences. Think of Nissan. You got a Nissan Ul9ma, you got a Nissan Maxima. They're kind of the same car but you have one that's a liJle more beefed up than the other one. That hits two different types of people. If they just had the Maxima, they lose all the sales that they had available for the Ul9ma. RachelRofe.com Page C3 When you're star9ng off in Shopify, if you're coming from the t-­‐ shirt world like me, I've sold tons of products to my core niches that are in the 19.99 to the 24.99 range, the t-­‐shirts. The first thing I did when I created my stores, the logical thing for me to do, was to hit a lower price point, and an above price point. I wanted to go either really low, or really high, because I already had the t-­‐shirts handled. I moved in t-­‐ shirts, as well, but when geBng your store started, you could easily just hit people with the same targe9ng that you did before with something that's 9.99, and not necessarily 24.99. Facebook user segmenta9on, different than consumer segmenta9on, tradi9onal, is loca9on that's s9ll, you s9ll have to figure out where you want to sell. In most cases it's in the United States. Demographics, you have age, gender, plaaorm and interest. Now over here you had occupa9on, and hobbies would be included here. Interest is going to include all those things. The behavioral, you'll have interest to build. We'll talk about that here more in a second. Price sensi9vity is a concern for us and I kind of explained that. You can't adjust your targe9ng around price sensi9vity. You can use some of that third party data to get people who have higher incomes, but that doesn't necessarily mean they're going to buy your product at a higher rate. If you're going to sell higher priced items, you can do that and adjust some of your targe9ng but we like to go over millions and millions of people so your targe9ng is rela9vely going to be the same. You wouldn't necessarily bake your price into the targe9ng. Let's go over the shoulder here. Now we're talking about the audience insight tool. All this is, is you go to your ads manager and you press the buJon that says audience insights. It's going to be in your naviga9on bar. Now we're here and we're back with our firefighter, right? We looked and jus9fied why, if we're going to sell something to a firefighter, why we would go aber men, right? Because there's more men firefighters, than there are females, even though the audience was skewed towards females, we had to define who are avatar was that we're actually going aber, and that was the male firefighter, for now. RachelRofe.com Page C4 If you have something that works, maybe target women later, but we're market tes9ng, remember? Now I want to talk to you about something about geBng this really refined. Right here, you can see, we have twelve percent, twenty-­‐one percent, twenty-­‐two percent, and so on here. You have this sixty-­‐five and above is eight percent. Now my rule here, is that anything that is not at ten percent or above, gets eliminated from the core tes9ng. In this instance, I would basically segment out anything above sixty-­‐five years old. That's going to re-­‐ shape everything here. These numbers are preJy solid, right? We have 2.5 to 3 million monthly ac9ve people, so here's thirteen percent of that audience being here, that's going to have a good chunk of people in it, and it's going to have plenty for us to target in a specific segmented ad. What I want to do now, is I'm at a top level, and I'm going to go over to the page likes tab. What I want to focus on is this down here. You can see that the affinity score over here, is in the teens, roughly a liJle hire, maybe a few lower. We have some decent numbers here. What your target is, is about 20X, to really get into your audience and limit those likes by associa9on. Affinity, is how likely someone is, at a top level, how likely someone is, who likes this interest, to like this interest. That's what affinity means. You can see I'm sorted by relevancy. That's a mixture of the audience and the affinity. That gives me the relevancy. You can see that this has got a higher affinity than this one, even though it's a smaller audience, it gets bumped to number one. Some of the ones down here, like this one, huge audience, but the affinity is lower, so it's number six. That's something to pay aJen9on to. Now I want to talk about what to do next. We're going to start talking about interest builds. Interest build is a term that I use to describe how interests become developed. How do they form on Facebook, right? Not all interests are created in the exact same way. Some of these pages were built by people like us, marketers. Some of these interests were built by actual corpora9ons, who have tons of traffic outside of Facebook. At a top level, we're going to understand this, to make sure that we u9lize that informa9on when it comes to the product lifestyle videos that you'll see later on. RachelRofe.com Page C5 Right now, what we want to do is look for, what I like to call either brick and mortar, or virtual interests, that have presences outside of Facebook. They were first formed outside of Facebook, and then somebody said, "Hey, you need to make a fan page." Then they made a fan page. They're not necessarily the best people at upda9ng that fan page, perhaps, but it's big, it's vibrant, and they might have some interac9on, but that's not necessarily the thing that we're worried about. If you remember, back when I said, tradi9onal consumer segmenta9on, one of the things here is brand loyalty. Brand loyalty is represented in Facebook off things like this, Firehouse.com. This is a website that created a Facebook fan page. It has 365,000 people who like it, however, forty-­‐five people, fiby-­‐eight people, seventy-­‐nine people. The engagement on this fan page, isn't the best. Marketers know how to play the system. This might be a very legit company, who gets a ton of traffic outside of Facebook, however, they don't know how to market on Facebook, and maybe they don't have the resources in order to market the proper way. They just have somebody that posts stuff on their fan page, and they know they need to do it. I hope that makes sense for you. What we're going to do, is rely on the fact that someone who is a firefighter, and within the community of firefighters, liked this website. They went to this website, they maybe saw a buJon to like their fan page, maybe they got a newsleJer, and in that newsleJer there was a buJon to like the fan page, and then they liked the fan page. Also, Facebook is really, really good at sugges9ng, you should probably like this page. Facebook is smart, and knows that Firehouse.com, is preJy legit, and that it needs to have a firefighter like it. Maybe it serves it up to actual firefighters, people who list firefighter in their job 9tle, and so on, and so forth. That's how these pages get built. I support firefighters, as a fan page that was built by a marketer. He ran an ad, more than likely a PPE ad, or a website conversion ad, and people liked that fan page through that, for the most part. They were built in two different ways. This guy, who doesn't know how to post content to get more than a hundred likes, even though he has 365,000 RachelRofe.com Page C6 people that like his page, is probably not running ads. This interest was built through loyalty. Let's go back, and I'm going to dive deeper into the niche, by using that interest, and removing the original interest. Now, all of my affinity has gone through the roof. Now I have way above twenty. Now I have tons of interest. Yes, some of these might have been on the other screen that we just had, but it's not about what is on here, it's about what was removed. We want all the crap and the noise to be removed, and we want what's leb to be the core interests for us to go aber. You can see that Firehouse.com is the number one here, of course. Then we have tons of great ... Everything on here says, "Fire." We are going to use these interests in the coming sec9ons once we get our store built, and once we're going to start running ads. That's how we refine our audience. We're going to find a core, and then we're going to list these .... Maybe write them down, maybe just keep this window open, or just remember the process that you got to get here, and keep it for the videos coming up in the product life cycle sec9ons, okay? Let's move on, and out of the fundamentals, and into the core and meat of this course, where we start geBng our MVP model store up. Okay? Thanks. Talk to you in the next video. RachelRofe.com Page C7