Paid Advertising Intermediate 5 min read

What is customer match?

Customer Match lets you use your existing customer data, like email addresses, to target specific ads to them across various platforms. It helps you reach known audiences with highly relevant messages.

Key points

  • Customer Match uses your existing customer data (emails, phone numbers) for targeted ad campaigns.
  • It helps reach high-intent audiences, often leading to better ad performance and ROI.
  • Data is uploaded securely and anonymously matched by ad platforms, not directly shared.
  • It's effective for personalization, loyalty building, cross-selling, and creating lookalike audiences.
Customer Match is a powerful advertising tool that allows businesses to use their own customer data to create highly targeted ad campaigns. Imagine you have a list of email addresses from people who have bought from you before or signed up for your newsletter. With Customer Match, you can upload this list to ad platforms like Google Ads, Facebook Ads, or LinkedIn Ads. The platform then securely matches these email addresses with its user base, allowing you to show specific ads only to those individuals. This approach moves beyond general demographic or interest-based targeting. Instead, it focuses on people who already know your brand, have interacted with your business, or fit a very specific profile based on your first-party data. It's about bringing a personal touch to your paid advertising efforts, making your messages more relevant and impactful.

Why customer match matters

Customer Match is a game-changer for several reasons. First, it helps you connect with your most valuable audiences. These are people who have already shown interest in your brand, making them more likely to convert. This often leads to a higher return on ad spend (ROAS) because you are not wasting impressions on less relevant audiences. Second, it enables powerful personalization. You can create custom messages for different segments of your customer base. For example, you might target past purchasers with ads for new products, or send special offers to customers who haven't bought in a while. This level of personalization can significantly improve engagement and conversion rates. Third, Customer Match is excellent for building customer loyalty and encouraging repeat business. By staying in front of your existing customers with relevant offers and updates, you can strengthen your relationship with them and reduce churn. It also allows for effective cross-selling and up-selling, showing customers complementary products or premium versions of what they already own.

How customer match works

Using Customer Match typically involves a few key steps. First, you gather your customer data, most commonly a list of email addresses. Other identifiable information like phone numbers or physical addresses can also be used, depending on the ad platform. It's crucial that this data is collected with proper consent and adheres to privacy regulations like GDPR or CCPA. Next, you upload this encrypted data to your chosen ad platform. The platform then hashes the data, meaning it converts the raw information into a secure, anonymous code. This hashed data is then compared against the platform's own hashed user data. If a match is found, that user is added to your custom audience. The raw customer data is never directly shared with the ad platform or other advertisers. Once your custom audience is created, you can use it just like any other audience segment. You can target these users directly with specific campaigns, or you can use them to create lookalike audiences. Lookalike audiences are new audiences that share similar characteristics with your existing customer list, helping you find new potential customers who resemble your best ones.

Key considerations for success

  • Data hygiene: Always use clean, up-to-date customer lists. Outdated or inaccurate data will lead to lower match rates and wasted effort.
  • Segmentation: Don't just upload one big list. Segment your customers based on their behavior, purchase history, or engagement level. This allows for even more precise targeting.
  • Privacy compliance: Ensure you have the necessary permissions to use customer data for advertising purposes. Transparency with your customers is key.
  • Combine with other targeting: Customer Match works even better when combined with other targeting methods, such as geographic location or specific interests, to refine your audience further.

Best practices for customer match campaigns

To get the most out of Customer Match, consider these best practices. Always start with your most engaged customer segments, such as recent purchasers or high-value clients, to see quick wins. Test different ad creatives and offers for various segments to understand what resonates best. Remember that match rates can vary between platforms and depend on the quality and age of your data. A good match rate is often 50% or higher, but even lower rates can be valuable for highly targeted campaigns. Regularly update your customer lists to ensure your campaigns remain relevant and effective. For example, if you run an e-commerce business, you might update your 'recent purchasers' list weekly. Also, think about using Customer Match for exclusion targeting. This means you can prevent ads from showing to people who have already completed a desired action, like purchasing a product, saving your ad budget for new prospects or different offers. Customer Match is a powerful tool for any marketing professional looking to improve their paid advertising results. By leveraging your first-party data, you can create more relevant, effective, and efficient campaigns that resonate with your most important audiences. Start small, test often, and always keep data privacy at the forefront of your strategy.

Real-world examples

Targeting past purchasers for new products

An online clothing store uploads a list of customers who purchased a specific type of jacket last season. They then create an ad campaign for a new, complementary accessory, targeting only those customers on Google Ads, increasing the likelihood of repeat purchases.

Converting free trial users

A SaaS company uploads a list of users whose free trial is about to expire. They run a Facebook ad campaign offering a special discount to encourage these specific users to convert to a paid subscription, rather than showing the offer to all trial users.

Common mistakes to avoid

  • Using old or uncleaned customer lists, leading to low match rates and wasted effort.
  • Forgetting to segment customer lists, resulting in generic ads instead of personalized messages.
  • Not ensuring proper consent for data usage, which can lead to privacy violations and trust issues.

Frequently asked questions

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