For many businesses Facebook Analytics is a source of headaches of epic proportion with its multitude of dashboards and other complexions. We’re here to clarify what Facebook Analytics is and to let you know why you should care about understanding your data. Facebook Analytics is a game changer for Facebook advertisers, providing you with invaluable information about your customer journey, sales funnel and targeting which can help you make informed decisions about your future strategy. No matter what type of business you are, you should be reading this blog.
What is Facebook Analytics?
Analytics is a Facebook tool which helps you optimise and understand your customer journey across all platforms (mobile, web, bots, offline etc.). This tool enables you to see data related to your Facebook page, pixel, apps and events – invaluable information to any business.
Why was it invented?
The Facebook Pixel required a data-focused tool to help users to disseminate data collected from the pixel. Facebook Analytics was designed to enable people to learn about previous, current and potential customers relevant to their business. In part, it was created because Facebook did not view Google Analytics as good enough to deal with all of the caveats of Facebook-specific data. You can learn more about the differences between tracking in Facebook and Google Analytics in our previous blog.
It’s worth knowing that even though Facebook Analytics was designed for advertisers, data is available for everyone on Facebook.
Facebook Analytics Overview screen
Why do you need them?
Analytics are an important way of understanding your sales funnels, revenue patterns and cohorts (ways of understanding your customers). Crucially, it helps you to understand where, why and how a customer drops off in the sales funnel. It shows how different parts of a customer journey and content are connected. This form of people-based marketing provides advertisers with detailed information to help achieve their objectives.
Here are some major ways in which Analytics can be useful:
- Provides you with insight
- Actionable, real-time data
- Data-driven direction for your organisation
- You can see month over month data
- You can see where overlap exists between channels (pixel, page and website)
- It’s easier to visualise your sales funnel
Whilst there is a vast quantity of incredibly useful data available through Analytics, the sheer amount of it can make it overwhelming at times. The best way to get to grips with and make the most out of your data is to decide on a specific area you wish to look at before diving in.
5 key areas to focus on:
Here, we’ve picked out five of our favourite areas to focus on to save getting overwhelmed with too much in one go.
- Event Source Groups
Also known as omni-Channel analytics or people-based marketing. Event Source Groups provide you with a comprehensive view of the customer journey.
By setting up an ESG in Business Manager you can connect people, ad accounts and pixels to view an intersection of data. Here, you can view site visits, add to carts, purchases, likes, comments, etc.
Page, App and Pixel are a good intersection to start with.
There are three different sections you can view in the Revenue area:
- Purchases – revenue, average revenue per paying user, average revenue per purchase
- Purchases – unique purchasers, number of purchasers, stickiness (day/month), average purchases per user, daily users
- Age and gender – displayed in a bar chart
You can customise by ‘show by’ in the top right corner to view by platform, age, gender and many more metrics. There are so many ways you can look at the data here your best bet is to start playing around and see what data splitting options are available that are useful to your business.
Funnels enable you to learn more about your conversion rates and completion times for specific flows in your website. You can build a funnel from anything in your ESG and it can include as many steps as you want. For example, see how many people that have visited your website that have added to cart and then continued on to purchase.
- Lifetime Value
In Facebook’s words, LTV “Measures the value of users, based on revenue that was generated over time, starting with an initial interaction. An initial interaction can be the first web view for a website, an app install for an app or the first page view for a page. Lifetime value can be viewed in daily, weekly or monthly intervals”.
This is an important metric as it provides cushion on the cost per conversion and provides detail on how successful you are at convincing people to purchase over time. For example, if you know that you have an LTV of £100 you won’t be as reluctant to increase your cost per conversion from £40 to £50 to get people into the business.
This provides you with an overview of age and gender, the channel people are coming from, demographic data, cities and much more. This data in particular is very useful for targeting and learning which audiences to aim for in future campaigns.
Depending on what source you are looking at you can create a demographic breakdown of Page Fans, Pixel or ESG.
Whilst Facebook Analytics contains a huge amount of data, by focusing on the areas that are important to your business you can quickly and easily make well-informed data-driven business decisions. Whether this be to learn more about drop-offs from your sales funnel, where you want to set your cost per acquisition or which audience type to focus on in the future, the data is readily available and shouldn’t be overlooked.
Understandably, each business will have different requirements, but our five suggested areas to focus on (ESGs, Revenue, Funnels, Lifetime Value and People) will contain data relevant to you all.
Make sure you take the time to look at Facebook Analytics to see how it can help your business.