As your business grows and you look to accelerate your growth, it can be difficult to understand where to spend your time, money, and effort. A common and effective way to prioritize those things is to understand where in you could be losing customers in your purchase funnel.

A purchase funnel is a common marketing concept that helps marketers identify how close a prospective customer is to making a purchase.

Below, we’ll show you some ideas and tips for how to use Twilio SendGrid Ads to increase your success at a few key stages of the purchase funnel.

Example Customer Journey

Let’s think about the purchase funnel through the process of buying a new winter jacket at an online retailer:

  • Step 1 – Someone needs to be become aware that the retailer exists.
  • Step 2 – They then need to consider purchasing something from the retailer. For example, perhaps they see a style of jacket that makes them intrigued enough to learn more, or perhaps they see a price point for a jacket that is appealing.
  • Step 3 – The person would prefer to buy a jacket from the retailer versus all other options (including not buying anything at all). This usually happens after exploring other options.
  • Step 4 – They actually purchase the winter coat from the retailer.
  • Step 5 – Now that they’ve purchased the coat, they may be loyal to the retailer of the winter coat if it meets or exceeds their expectations. The retailer might then have the opportunity to sell them additional items in the future, like a pair of gloves.

How To Use SendGrid Ads to Target Different Steps in Your Purchase Funnel

Before you start spending money on advertising, it is important to know how to find your funnel conversion metrics in a website analytics tool like Google Analytics or Mixpanel. You’ll want to be able to prove that your activities are making a difference in your funnel.

For example, if you’re focused on increased purchases at the bottom of your funnel, you will want to track purchases before and after you advertise different products.

When you set up a campaign in Ads, you’ll see your campaign results in the dashboard. This will give you stats on key metrics like impressions and clicks, as well as purchases (if you’ve set up that tracking). However, it’s important to align those ad campaign results with the metrics you’re reviewing in your website analytics tool.

Let’s talk about how to use display ads on Facebook, Instagram, and Google to impact a few key stages of the purchase funnel:

Increasing Awareness

In many instances, customers know that there is a product they want, but they don’t know exactly which product they want, or where to get it. In the awareness step, as the seller, you’re simply trying to get the customers attention and let them know you exist and you have products they’re looking for.

To accomplish this, you can create a demographics/interest campaign based on people who are interested in the products you sell or the activity that uses the products you sell. For example, if you sold winter apparel, you could create a campaign targeted at people interested in skiing or snowboarding.

The ads below are primarily awareness ads because all they are doing is showing the viewer that the product or seller exists:

Targeting the Consideration Step

When a customer has learned about you, the seller, and is considering whether or not to purchase a specific product or service, they’re in the consideration step of the purchase. They could be looking at a couple different products on your site, or even put a product in their shopping cart, but they might leave or remove the product without buying it.

For customers like this, you could set up a website retargeting ad campaign that targets that potential customer with display ads reminding them about the jacket they viewed, and describing a few additional benefits or reasons they should prefer to buy it.

Below are two examples of ads that are targeting customers at the consideration stage. The first example is offering discount to customers because they may have visited the site, but left. The second ad is offering another:

Targeting Loyal Customers

Finally, another great way to grow your business is to sell to people who have already bought from you: the people in the loyalty stage.

For this strategy, the retailer could use the email list of people who have previously purchased something and target specifically those people with social ads on Facebook and Instagram. The ads may highlight new or limited edition products, or offer a discount for a repeat purchase.

Setting Up Your Next Campaign

Regardless of which stage of the purchase funnel you’re trying to target, there are some steps that you should take for any ad campaign.

  1. Identify how the segment of customers you’re targeting differs from the rest of your customers. If they’re in the consideration stage, you might try to identify them based on general interests. If they’ve already purchased from you in the past, identify other products they may be interested in.
  2. Design a compelling ad to draw the viewer to the retailer’s website. Whether you’re featuring your logo in order to create awareness, or featuring an action sport, you want to capture attention and drive customers to click on a link to your site.
  3. Go to SendGrid Ads and set up the campaign. SendGrid Ads can help you implement your next purchase-funnel ads. Here’s an example walkthrough video of setting up a website retargeting ad campaign on SendGrid Ads:

SendGrid Ads was developed to help you easily create and launch display advertising campaigns on FacebookInstagram, and Google Display Ads.  You can learn more by visiting the SendGrid Ads solution page.

Ben Blackmer
Ben Blackmer is the Senior Product Marketing Manager on SendGrid Ads. Ben started out working for digital advertising agencies in Chicago, IL and Durham, NC before founding Are You A Human, an advertising technology firm focused on human verification online. He has run advertising programs for companies like Macy’s, Kellogg’s, and Qwest Communications. Ben holds degrees in Economics from NYU and an MBA from the University of Michigan.