Meta Ads
How to Use Facebook Custom Audiences to Reach Past Customers
As a local business owner, you know that repeat customers are the lifeblood of your business. But with so many distractions competing for their attention, how do you keep them coming back? Enter Facebook Custom Audiences, a powerful tool that lets you target your past customers with laser-like precision.
Did you know?
- 71% of consumers prefer to shop at local businesses. (Source: American Express)
- The average customer spends 67% more on their second purchase than their first. (Source: Marketing Metrics)
- Retargeting ads can increase conversion rates by up to 400%. (Source: HubSpot)
- The cost-per-click (CPC) for Facebook ads is $0.70 on average for local businesses. (Source: DataLatte)
71↑
Repeat customers prefer local businesses (%)
American Express, Marketing Metrics, HubSpot, DataLatte
67↑
Customer spending increases (%)
American Express, Marketing Metrics, HubSpot, DataLatte
400↑
Retargeting conversion rate increase (%)
American Express, Marketing Metrics, HubSpot, DataLatte
0.70→
Average CPC for local businesses
American Express, Marketing Metrics, HubSpot, DataLatte
Step 1: Set Up Your Facebook Pixel
To create a Custom Audience, you need to have a Facebook Pixel installed on your website. This tiny piece of code collects data on your website visitors and sends it to Facebook. Don't worry, it's easy to install and takes just a few minutes.
Step 2: Choose Your Data Source
Facebook Custom Audiences can be created from three main data sources:
- Website traffic
- App activity
- Customer data (email, phone number, etc.)
Choose the source that best fits your business needs. For example, if you have a coffee shop, you might want to target customers who have visited your website or app.
Step 3: Define Your Audience
Now it's time to get specific. Who do you want to target? Use Facebook's advanced targeting options to select demographics, interests, behaviors, and more. You can even upload your own customer data to create a Custom Audience.
Audience Size Comparison
Website Traffic
people1000App Activity
people500Customer DataBest
people2000Estimated audience size based on average numbers
Step 4: Create Your Ad Campaign
With your Custom Audience in place, it's time to create your ad campaign. Use Facebook's ad platform to select your ad format, budget, and targeting options. Don't forget to choose a compelling offer or promotion to drive sales.
Tip: Keep it simple
Don't overcomplicate your ad creative. Use eye-catching visuals and clear messaging that resonates with your audience.
Warning: Be authentic
Don't try to be someone you're not. Authenticity is key to building trust with your customers.
Example: Local business success story
"We used Facebook Custom Audiences to target our past customers and drive repeat sales. The results were amazing – a 25% increase in sales and a 15% increase in customer loyalty." - Rachel, owner of "The Cozy Cup" coffee shop
Coffee: DataLatte's take
Facebook Custom Audiences is a game-changer for local businesses. By targeting your past customers, you can drive repeat sales, increase customer loyalty, and grow your bottom line. Don't miss out on this opportunity to take your business to the next level.
Frequently Asked Questions
Q: Will my customers be creeped out that I’m targeting them with Facebook ads?
Honestly? Some will. I had a salon owner in Austin tell me a client asked, “How did you know I was thinking about booking?” The client wasn’t angry — she was impressed. But I’ve also seen customers leave negative reviews about “stalker ads.”
The fix is two things. First, control your frequency. Don’t show the same ad seven times in a day. Set a frequency cap of 1–2 times per week per person. Second, make the ad feel helpful, not surveillance-y. “We saw you liked your last cut” feels different than “You visited our website 14 minutes ago. Here’s a coupon.”
Q: How do I create a Custom Audience if I don’t have a website or a Facebook Pixel?
You don’t need a Pixel if you have customer data. Export emails or phone numbers from your POS (Square, Clover, Booksy) or from a Google sheet you keep at the register. Upload that file to Facebook and it’ll match against user profiles. No website required.
The match rate depends on data quality. Clean lists (correct emails, recent activity) match at 50–70%. Old lists or data-entry-heavy lists (handwritten sign-up sheets) match at 20–40%.
Q: I’m a hair salon with a 30-day booking cycle. How do I avoid showing ads to people who just booked?
Set up an exclusion. Create a Custom Audience of people who booked within the last 30 days (export from your booking software). Add that as a negative audience to your ad set. Facebook won’t show your ads to anyone on that list.
If you use Booksy or MINDBODY, you can automate this with a monthly export. If you’re using a manual system, export every two weeks. It takes five minutes and saves you from annoying your best clients.
Q: What’s the minimum budget I should start with for Custom Audience ads?
I’ve seen $300/month work for a small salon in Oklahoma City. But you have to be disciplined about segmentation. At $300/month, you can afford one or two audiences. Don’t try to run five campaigns on that budget — you’ll split the data too thin to learn anything.
For most local businesses, $500–$1,000/month is the sweet spot. It lets you test three to five audience segments, get statistically significant data within two weeks, and pivot fast.
Q: How often should I refresh my Custom Audiences?
Every 30 days for transaction-based audiences (who bought, who lapsed). Your customer list changes constantly — new customers, people who return, people who move away. If you use the same list for three months, you’re targeting people who may have already come back.
For website-based audiences (visitors, abandoners), Facebook updates those automatically. You don’t need to re-upload. But for email/phone lists, set a monthly calendar reminder.
Q: Can I use Custom Audiences with Google Ads instead of Facebook?
Yes, and you probably should. Google Ads has a tool called Customer Match that works the same way. Upload your customer emails, and Google matches them to Gmail accounts and YouTube profiles. You can then show search ads, YouTube ads, or Gmail ads to those people.
I use both together. Facebook is better for visual retargeting (photos of your product/service). Google is better for intent-based retargeting (they search “coffee shop near me” and your ad appears). Together, they cover different parts of the decision process.
I spent years at agencies where we built multi-million-dollar retargeting systems for Fortune 500 clients. The tactics were complex, the data stacks were expensive, and the reports were designed to impress stakeholders, not to actually grow a business.
When I started DataLatte, I stripped all of that out. What’s left is what actually works for a local business with a real budget and a real desire to grow. Custom Audiences are one of the few Facebook tools that consistently deliver a positive return — but only if you set them up with intention, clean data, and the willingness to segment deeper than the guides tell you to.
If you’ve read this far and you’re thinking, “I need to fix my audiences but I don’t have the time,” I get it. Running a business eats every spare minute. That’s why I do this for you.
Book a free consultation — we’ll look at your current ad account, your customer data, and build a Custom Audience strategy in 30 minutes. No fluff. No “it depends.” Just a specific plan for your business.
Related Articles
- Best Facebook Ad Formats for Local Businesses in 2026 (With Examples)
- How Much to Spend on Facebook Ads as a Local Business (2026 Benchmarks)
- Facebook Ads for eCommerce: Prospecting and Retargeting That Converts
- Facebook Ads for Event Promotion: Sell Out Your Next Event
- Facebook Ads Lead Generation: How to Get Leads Without a Website
Ready to Grow With Paid Social?
DataLatte specialises in Meta Ads for local businesses. Get more customers without wasting budget. Book a free strategy call or learn more about Meta Ads management.
Free for local businesses
Want this applied to your business?
I'll review your Google presence, local SEO, and ad accounts — and send you a specific action plan within 48 hours. No pitch, no pressure.
Want hands-on help?
See how DataLatte handles Meta Ads Management for local businesses.
Nataliia
Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.
About NataliiaRelated articles
Meta Ads
Facebook Ads for Pet Groomers: Get More Clients
8 min read
Meta Ads
Facebook and Instagram Ads for Coffee Shops: What Actually Works in 2026
8 min read
Meta Ads
How to Get More Salon Bookings with Meta Ads
8 min read
Meta Ads
Facebook Ads for German Small Businesses: What Works in the DACH Market
11 min readWant this applied to your business?
Let's review your current marketing setup together — free, no obligations.
Get Your Free Marketing Audit