Shopify Audiences 101: What You Need to Know

Ready to unlock more powerful tools that Shopify has to offer? Make yourself familiar with Shopify Audiences - an audience list generator that will skyrocket your business performance. 

Instead of relying on ad platforms’ surface-level metrics, this tool is specifically designed to deliver insightful data to give you a closer look at your marketing efforts. 

If we have managed to pique your interest, keep reading for all the ins and outs of this versatile tool, how you can make it work for you, and exactly why it matters to your eCommerce store.

What is Shopify Audiences?

Shopify Audiences is a Shopify-made tool that enables merchants to curate an audience list based on customer data for efficient marketing efforts. 

This feature not only saves time and resources but comes with conversion-optimized benefits as well. Since Shopify understands the gravity of customers to businesses of all shapes and sizes, this tool was launched with a clear-cut purpose: to reach the right people at the right time.

Who is it for? Shopify Audiences is currently available for Shopify Plus users using Shopify Payments and are based in the USA and Canada. Although this feature was launched just shy 2 years ago, it has garnered a significant number of users and positive feedback.

Why use Shopify Audiences? Shopify Audiences is a valuable add-on for merchants thanks to its precise ad targeting, reduced customer acquisition costs, higher ROI on ad spend, and so on. In short, it streamlines your marketing efforts to drive more sales and foster brand growth.

Elevate your brand through the help of Shopify Audiences.

Now that we’ve gotten a look at the bigger picture of this agile tool, let’s get into the nitty-gritty of exactly how it can transform your business in the chapter below.

Learn more: Shopify Tutorial: Everything For Success [2024]

What are the Benefits of Shopify Audiences?

Improved Audience Targeting

We mentioned how Shopify Audiences can analyze customer data to curate a valuable customer list for sellers, but how exactly does that work?

Once you activate Audiences, the algorithm begins studying millions of commerce activities performed in your storefront, including daily traffic, email sign-ups, transactions, etc. 

This accumulated data is then processed to develop targeted customer lists, which will be exported to connected advertising accounts. 

If you wish, the audience lists can be fully tailored to fit your marketing campaigns based on demographics, purchasing history, and the like. These lists ensure that not only will your ads perform well, but the right individuals will be reached.

Learn more: B2B vs B2C eCommerce—Differences, Marketing & Sales Funnels [+ Examples]

Enhanced Advertising Campaigns

In eCommerce, accurate targeting ultimately equates to better advertising. With Shopify Audiences’ advanced metrics, your social media ad campaigns are empowered to outperform the competitors. With that being said, since most social platforms come with built-in insights, a question emerged: is Shopify Audiences necessary?

We will give it to you straight: yes, Shopify Audiences can do miracles for your business if properly utilized, and it has proven to be a huge perk for Shopify merchants over other platforms.

Think of this tool as an added layer of insight to your advertising campaigns to provide a deeper customer analysis, thus producing better ads as a whole.

According to Shopify, store owners can opt for three different list types:

• Retargeting: aims at users who have previously interacted with your brand, crowned as the highest-ranked potential customers.
• Prospecting: a mid-tiered customer list that contains prospects whom Shopify predicts will engage with your brand.
• Lookalike: a lower-intent audience in a large-scale list.

All in all, while merchants can make do with the existing insights on social media sites, Shopify Audiences took it a notch further in the advertising department. This newly rolled-out version covers a wider array of merchants, thus, no matter which stage you are on, these features will benefit you in your business venture.

More from GemPages: eCommerce Remarketing and Retargeting: The Secret to Keep Customers Coming Back [+ Best Strategies]

Reduced Acquisition Cost

Another plus of using Shopify Audiences is the lower customer acquisition cost (CAC). The telltale sign is apparent: precise targeting eliminates the need to acquire more customers.

With the CAC being decreased by as much as 50%, Audiences are nothing short of ideal, especially for businesses on a budget. The return on investment (ROI) will improve as well, given the consequent boosted conversion rates.

Instead of attempting a shot in the dark, sellers can now pinpoint where and who to target with Shopify Audiences.

Data-driven Insights and Metrics

In the long run, Shopify Audiences can excel as well. The data-driven insights and in-depth metrics are the nonpareils in keeping a business in shape without significant mishaps. By constantly reviewing customer behavior and performance analytics, this tool will make every dollar of your ad budget count, and encourage brand growth as you step up your marketing campaigns.

How to Set Up Shopify Audiences from Your Admin Dashboard

All that talk above would be for nothing if we do not put you on with the process of setting up Shopify Audiences for your store. Although the effects seem over-the-top, starting is as easy as ABC. Let’s check it out below.

1. Ensure the Eligibility of Your Store

To start using Shopify Audiences, we need to check your store's criteria. You are eligible for Audiences if you have the following conditions:

• Use Shopify Plus
• Based in the USA or Canada
• Have Shopify Payments enabled

Additionally, the qualities below are advantageous to possess to maximize the effectiveness of Shopify Audiences:

• Have an active and compliant Shopify store
• Acquire a substantial customer volume

The more data you currently hold, the more sufficient Shopify Audiences is at designing your targeting campaigns. By meeting these requirements, you will be ready to utilize what this tool has to offer.

2. Install Shopify Audiences from Your Dashboard

Once the eligibility check is clear, you can go ahead and install Shopify Audiences. Then, follow these simple steps:

• Open your Shopify Admin
• Go to Apps > Installed Apps
• Choose Shopify Audiences
• Click Set up audiences
• Turn on data sharing
• Agree to the Terms and Conditions

3. Connect to Advertising Platforms

• Shopify Audiences works with most common social media platforms. In this blog post, we will instruct you on how to connect to Google, Meta, and TikTok.

Google & Meta

• Open Shopify Audiences and select Google/Meta
• Click on Connect ad account
• Enter your login information and choose the Google Ads/Meta account
• Accept the Terms and Conditions

TikTok

• Open Shopify Audiences and select TikTok
• Click on Connect ad account
• Enter your password and choose the TikTok account
• Accept TikTok’s audience terms

4. Generate and Export Audiences

After successfully connecting Shopify Audiences to your advertising platforms, the next step is to generate and export the audience lists. 

Step 1. Go to Shopify Admin > Apps

Step 2. Select Shopify Audiences

Step 3. Click on Create Audience

Step 4. Pick the criteria for your audience list (purchase behavior, interests, etc.)

Step 5. Name and export your audience to the platforms of choice

Once you have completed the steps above, proceed to log into your social media accounts. In each platform, the list is often under the “Audiences” or “Audience Manager”. We’ll go into details on how to use these audience lists in your ad campaigns below.

5. Select Audiences in Ad Campaigns

The final and most important step in Shopify Audiences implementation is running advertising campaigns with the audience list enabled. Based on each platform’s interface, below is a general guideline.

Google

• Log into your account
• Create a new campaign
• Click on Audience > Remarketing > Custom Audiences
• Pick the imported audience list from Shopify Audiences
• Make additional settings and launch the ad

Meta

• Log into your account
• Create a new campaign
• Click on Ad Set > Audiences > Custom Audiences 
• Pick the imported audience list from Shopify Audiences
• Complete your campaign and launch the ad

TikTok

• Log into your account
• Click on Ad Group > Targeting > Custom Audiences
• Pick the imported audience list from Shopify Audiences
• Finish setting up your campaign and launch the ad

And there you have it, a much-needed guide to jumpstart your journey with Shopify Audiences. Although it seems complex written down, the whole process can be done in one single day. If you decide to test the waters with Audiences right now, your advertising campaigns can possibly garner positive results in the next few weeks.

3 Brands That Have Found Success with Shopify Audiences

Curious to see how Shopify Audiences plays out with real-life brands? Take a peep at the three cases below and their newfound success.

BlenderBottle

BlenderBottle witnessed tremendous success with the use of Shopify Audiences.

If you are an active member of the health and fitness community, the name BlenderBottle has probably crossed your mind. Known for its revolutionary shaker bottles that can house any form of liquids, this brand is also a notable example of successful Shopify Audiences users.

Founded in 2000, BlenderBottle has witnessed steady growth ever since. However, the founders yearned for a more impactful breakthrough, especially with the spike in digital shopping. The company then adopted Shopify Audiences as a marketing solution - one of the perks of being a Shopify Plus user. 

This is no less than a match made in heaven, as the result exceeded its initial expectations. The brand is reported to receive a 600% return on ad spend after utilizing high-intent customer lists and crowned Shopify Audiences as a backbone in achieving an outstanding campaign performance. 

This goes to show that one single change in your business operation can open up more brand growth, alongside patience and consistency.

Happy Hippo

Happy Hippo acquired new customers and improved their conversion rates after signing up for Shopify Audiences.

A prime example of a thriving Shopify store is Happy Hippo - a Canadian brand that offers fun, safe, and innovative bath products for children. With 18 years in the biz, the company has grown from a small business to a well-known white label manufacturer in the bath and body care sector.

With a lot more opportunities to develop on the horizon, Happy Hippo decided to invest in becoming a Shopify Plus subscriber. This shift predated another implementation of none other than Shopify Audiences, and soon enough, improvement was becoming apparent.

The first campaign was the key to unlocking new buyers for Happy Hippo, as 23% of its sales came from new-to-brand (NTB) customers, in which less than 1% of them had previous sales activity. As the marketing efforts went on, the recorded data in the following 3 weeks post-campaign was no less than lucrative:

• 4.7x return on ad spend
• 86% NTB customer rate
• 72% lower customer acquisition costs
• 200% increase in conversion rate

With the focus on Facebook Ads, the Happy Hippo team was able to attain numerous marketing goals and milestones just by trying their hands at Shopify Audiences.

SIMKHAI

Shopify Audiences has helped luxury brand SIMKHAI reduce costs and boost sales with its valuable insights.

SIMKHAI is a luxury women’s apparel brand that got a shot at fame in 2015, just a shy 5 years after it was founded. Since the customer base was growing rapidly, the company understood the importance of digital marketing in maintaining customer retention and attracting prospects. Shopify Audiences was the chosen solution to boost its marketing performance.

Instead of leveraging this tool directly, SIMKHAI partnered up with Maison MRKT - a Shopify Plus digital marketing agency. This alliance allowed SIMKHAI to navigate its upcoming ad campaigns better, as Maison MRKT’s insights helped form detailed audience lists and design a gilt-edge marketing strategy. 

As a result, SIMKHAI has accomplished its business goals: 54% lower cost per acquisition, 84% higher conversion rate, and a staggering rate of 89% of new customer acquisition all attributable to Shopify Audiences.

This strategic utilization of Shopify Audiences has further cemented SIMKHAI’s spot in the luxury fashion industry in this era of digital commerce.

Key Takeaways

The path to newfangled marketing success is more attainable than you thought, all thanks to this all-in-one tool brought by none other than Shopify. If you are operating on this very platform, it is a good call to give Shopify Audiences a whirl. After the irrefutable benefits of this tool in optimizing campaign performance, customer acquisition costs, and return on ad spend, this is the sign for you to transform your business with Shopify Audiences.

FAQ about Shopify Audiences