How to Set Up Facebook Retargeting Ads For Shopify Stores

Facebook Retargeting ProfitableAds

Retargeting is a great way to get people who have visited your Shopify store back into the sales funnel. Facebook retargeting ads are a cost-effective solution that will allow you to reach out to potential customers again and again with personalized ads.

In fact, listen to this: retargeting makes customers 70% more likely to convert than the average user!

Ad retargeting stats

In this blog post, we will outline how easy it is for anyone running a Shopify store to set up their first Facebook retargeting campaign.

What are Facebook retargeting ads?

Facebook is one of the biggest websites in existence today with over a billion users. This means that if you are trying to reach out to people who have recently visited your Shopify store, there’s almost no better platform than Facebook Ads.

Facebook gif

The way retargeting works on Facebook is by placing tracking pixels onto specific pages within your Shopify store (i.e., product pages). Once these pixels load up on those particular web pages, they will start recording data points like IP address and user behavior (clicks, scroll depth, etc.).

After this data has been collected for some time, it can then be used as an audience targeting criteria during ad campaigns with pixel-specific audiences created inside the Facebook Ads Manager interface.

Retargeting ads are essential for Shopify stores because up to 80% of carts are abandoned. And, yes, you read that right! This means without a way to contact these shoppers again, you’ll miss out on sales and growth.

That brings me to my next point.

What are the benefits of retargeting Shopify users?

Retargeting is critical for e-commerce and dropshipping businesses. Why? Here are a few reasons.

Drive more sales and revenue

The main reason why you want to retarget Shopify users is that it drives more sales for your business. 💸

Most users will add products to cart, browse category pages, and leave without converting. If you don’t retarget these individuals, you’re letting revenue slip between your fingers.

Optimized retargeting ads will drive traffic back to key pages on your online store and ultimately get you more sales. The average conversion rate across all industries for Facebook Ads is 9.21%.

Average FB Ad conversion rate

Recover abandoned carts

As I mentioned earlier, up to 80% of customers will abandon their cart at some point during the checkout process. And, if you don’t retarget, all of these people may not return to finish checking out. As a result, you miss out on conversions and sales.

Once you set up a Facebook Pixel and begin running retargeting campaigns (I’ll be showing you how later), you can target different audiences like those who:

  • Abandoned from a product page.
  • Abandoned from the cart page.
  • Abandoned from the checkout page.
  • Etc.

You can serve these different customer groups unique messaging and offers that resonate with them versus giving everyone the same ad.

Increase return on ad spend

How much do you spend on Facebook Ads and other media buying campaigns? Hundreds? Thousands? Tens of thousands? Naturally, you want to get the most bang for your buck.

Mr Krabs gif

Retargeting ads do exactly that. They help you achieve a return on ad spend so you generate more revenue with less budget. This is much better than dumping more ad spend into campaigns that are working while you could be retargeting at the same time.

How to set up Facebook retargeting ads for Shopify

Alright, let’s talk about setting up Facebook retargeting for your Shopify store next.

Step 1: Create a Facebook Pixel

The first step is to create the Facebook Pixel. This pixel is what tracks users on your Shopify store and allows you to retarget them in future ads.

Go into Event Manager and click the green plus button.

Facebook event manager

Select “Web” from the popup.

Facebook data sources

Select the “Facebook Pixel” connection method.

Facebook Pixel connection method

Click “Continue” on the next prompt.

Connecting a Facebook Pixel

Step 2: Connect the Pixel to your store

Name the Facebook Pixel and enter your website URL.

Naming the Facebook Pixel

Select the Shopify partner integration and follow the steps to correctly connect with Facebook.

Connecting Facebook to Shopify

Congratulations! You now have a Facebook Pixel on your Shopify store and can begin running retargeting ads.

Step 3: Start running Facebook retargeting ads

Once your Pixel begins collecting data, you can create custom audiences for retargeting. Visit Ads Manager and select “Custom Audience” under “Create Audience.”

Creating a custom audience on Facebook

Select “Website” from the source options and click “Next.”

Custom audience source

Create audiences for customers who:

  • Visited the checkout page but didn’t convert.
  • Stayed for X amount of time on your website.
  • Visited product pages but didn’t add to cart.
  • Etc.

You can edit the values on the following prompt to create such custom audiences.

Facebook custom audience values

You can then create ad campaigns targeting these customer groups.

Optimizing your Facebook Retargeting ads for Shopify

You installed a Facebook Pixel on your Shopify store. You’ve created custom audiences. Cool. What’s next? Optimizing your retargeting ads for maximum conversion rates.

Each customer group requires a unique offer

Don’t make the mistake of sending every person that visits your Shopify store the same retargeting ad. Take a moment to think about the buyer journey and each stage that customers are in.

For example, someone that never added a product to their cart is much different than someone that made it to checkout and exited. Both of these individuals would need very different offers to convert.

That’s why I suggest creating custom audiences to retarget. These could include customers who:

  • Exited from product pages.
  • Added to cart but never reached the checkout.
  • Reached checkout and exited.
  • Spent a specific amount of time on the site.

That brings me to my next point.

What are the benefits (not just the features) of what you sell?

One of the most important part of retargeting ads (and any ad for that matter) is the sales copy. In particular, I want you to focus on the benefits of what you sell. Not just the features. You see, a lot of e-commerce stores make the brutal mistake of only talking about surface level product information. You know what I’m talking about… colours, material, sizing; things like that.

Check out this retargeting ad Dollar Shave Club ran.

Dollar Shave Club Facebook retargeting ad example

Not only do you get “the world’s best razors” but it’s only for a few bucks a month without any commitment or membership fees. Not to mention a 100% satisfaction guarantee. A.K.A you’re getting much more than razors mailed to you every month.

Create a sense of urgency or scarcity

Urgency is one of the greatest motivating factors for people to purchase a product. If they feel like they have to take action soon or they’ll miss out, they will be more likely to convert. In fact, one study discovered that shorter time limits create urgency and increases purchase intent.

As a Shopify business, you can create a sense of urgency or scarcity in your Facebook retargeting ads by:

  • Presenting a time-restricted offer. I.e. a 25% discount for finishing checking out if it’s within 24 hours.
  • Focusing on low inventory. I.e. “Only 5 left in stock!”
  • Use social proof of how many people have purchased a product or a testimonial to create a fear of missing out.

Look at this ad from J. Crew for example.

Urgent Facebook ad

They offered a 40%-off flash sale with the sales copy “The clock is ticking…” and “Hurry–ends soon!” to create a feeling of urgency.

Split test!

Sure, you can create a retargeting campaign and knock it out of the park but the best campaigns come from A/B split testing. Luckily, Facebook has built-in split testing capabilities. That means no more putting in elbow grease to manually test sales copy, creatives, and targeting. Testing will help to maximize your ad spend, conversions, and growth. As a matter of fact, companies have increased conversion rates by up to 300% with A/B testing!

Benefits of AB testing

Final thoughts on Facebook retargeting ads for Shopify stores

Retargeting is essential for success if you’re running Facebook Ads as a Shopify store. Yet, a lot of businesses don’t use them or run them incorrectly. Either way, they miss out on sales and conversion. Big time. Here’s a recap of today’s article on retargeting on Facebook for Shopify brands:

  • Install a Facebook Pixel on your website to collect data.
  • Create custom audiences for retargeting campaigns.
  • Run offers to each customer group you retarget.
  • Improve the sales copy of each ad to drive more conversions.
  • Make a sense of urgency or scarcity.
  • Elaborate on the benefits of what you sell. Not just the features.
  • Split test campaigns to find winning combinations of sales copy, creatives, and targeting.

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