How do you create a value-based lookalike audience in Facebook Advertising?

What you'll learn

Learn how to create a value-based lookalike audience in Facebook Advertising using CLV data (customer lifetime value) from Klaviyo. When you export a list or segment from Klaviyo, you can upload it as a custom Facebook audience and use it as a source to create a similar lookalike audience. Since you're using CLV data in this case, your lookalike audience is based on values, giving you a better idea of how much you can spend on ads for this group of customers.
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Before you begin
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Keep in mind that CLV data can only be exported if you meet the following requirements:
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• At least 500 customers have made a purchase. This refers to the number of customers who have actually made a purchase, not active profiles. If the CLV section on a profile is present but empty, it means that Klaviyo does not have enough data about that person to make a prediction.
• You have an e-commerce integration (e.g., Shopify, BigCommerce, Magento, etc.) or are using the Klaviyo API to send placed orders.
• You have at least 180 days of order history with the current integration and have had orders within the last 30 days.
• You have at least some customers who have placed three or more orders.

You can read more about this in the article on segmenting based on CLV.
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Export your CLV segment

1. Select a segment you want to export based on your business and advertising goals; for example, a VIP segment.

2. Follow the steps in the article "How to export a list or segment to CSV file."

3. On the Export Review screen, add the Email and Total Customer Lifetime Value properties. You can also include more properties if you wish. Check the details in Facebook's documentation.

4. Your segment will be saved as a CSV file on your computer. Use this CSV file in the next section when creating a source custom audience on Facebook.

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Create a source custom audience

1. Log in to your Facebook Ad Account and create a new custom audience.

2. Select Customer File > Use a file that includes customer lifetime value (LTV) in the workflow.

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3. You will be prompted to accept the terms of service for working with value-based audiences if you haven't done so already. To do this, click on I Accept.

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4. Then, add your CSV file by selecting The Original Data Source and Name Your Audience in the dropdown menus. In the next screen, choose your customer value column.
5. Select Total Customer Lifetime Value from the dropdown to assign your Klaviyo Total CLV to Facebook's LTV.

6. Next, review your data and map it; complete the creation of your audience. You now have the option to create a lookalike audience, which we will cover in the next section.

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Create a value-based lookalike audience

1. After you've created your custom CLV audience, proceed where you left off and click on Create a lookalike audience.

2. For Select Your Lookalike Source, choose the custom CLV audience you created in the previous section.

3. Enter the location and size of your audience, then click on Create audience.

4. Your value-based lookalike audience is now available on Facebook for ad targeting. Learn more about creating a value-based lookalike audience in Facebook's documentation.

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Connecting a Source Custom Audience via Klaviyo
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When you integrate a Klaviyo list or segment with a custom source audience, new profiles added to the list or segment will sync with the custom audience on Facebook. You can synchronize a Klaviyo list or segment with a custom source audience.

However, when linking a list or segment to a custom audience via Klaviyo, CLV information does not automatically transfer to Facebook. New customers added to your list or segment in Klaviyo will sync with Facebook, but since Klaviyo does not natively support syncing CLV data, these customers will be added to your source customer audience with a default CLV value. This may lead to a distorted view of the customers added to value-based lookalike audiences linked to your source audience.

Result
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You have now learned how to create a value-based lookalike audience in Facebook Advertising using CLV from Klaviyo.

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If you have any questions about creating a value-based lookalike audience in Facebook Advertising after reading this article, contact Polaris Growth for more advice.
Find the original article here.