Amazon, with 200 million Prime members and a relentless trajectory of growth, remains an unparalleled force in the ecommerce landscape. As brands navigate this dynamic marketplace in 2024, the key to success lies in acquiring and retaining customers. In this comprehensive guide, we dive into the strategies that brands can use to not only attract new customers but keep them coming back.
Understanding the Dynamics of Customer Acquisition and Retention
Customer acquisition is the pursuit of shoppers who have not previously engaged with a brand — the coveted “new-to-brand” customers. Conversely, customer retention centers around providing excellent service and brand trust for buyers who make repeat purchases within a rolling 365-day period. In the ever-evolving Amazon ecosystem, mastering both aspects is critical for sustained success.
Amazon Customer Acquisition Strategies
WBX Commerce data shows that on Amazon, a staggering 70% of sales are attributed to new-to-brand customers. For consumer-packaged goods (CPG) brands, the figure hovers at 60%, underscoring the importance of acquiring new customers to strengthen market competitiveness.
1. Identifying and Acquiring New Customers
The Role of Amazon Market Basket Data
Leverage the power of Amazon Market Basket Data to pinpoint potential customers who have yet to purchase from your brand. This data allows you to identify products that are often bought together, which gives you the foundation for targeted advertising.
Amazon DSP Targeting
Advertise on the Amazon DSP to strategically target potential customers identified through market basket data. This ensures that your ads reach individuals who have not previously purchased from your brand. DSP ads allow you to reach your customers wherever they are with streaming TV, video, and display advertising across Amazon, its subsidiaries, and third-party sites like ESPN, IMDb, and Twitch.
Leveraging Amazon Marketing Cloud Data
To measure the success of your customer acquisition efforts, tap into the exclusive data points offered by Amazon Marketing Cloud. This data includes insights into customers acquired through sponsored products and the sequence of media (ads) that contributed to conversions. New to the Amazon Marketing Cloud? Check out our comprehensive guide.
2. Optimizing the Customer Journey
Seamless Shopping Experience
Regardless of whether your brand operates on multiple marketplaces or integrates brick-and-mortar and ecommerce experiences, optimizing the shopping journey is essential to earning and keeping customers. While the Amazon store might lack the branding depth of a Shopify or WooCommerce page, consistency in branding through A+ Content and Storefronts is crucial for building brand awareness on Amazon.
3. Tailoring the Amazon Customer Experience
Cross-Promotion Through Amazon Market Basket Data
Cross-selling is a powerful tool for reaching potential customers. Utilize Amazon Market Basket data and halo data to cross-promote relevant products in your catalog. For instance, if your brand sells coffee, showcase an ad for one of your creamers.
Nurturing Customer Retention on Amazon
While customer acquisition dominates the initial phase of engagement, customer retention is the cornerstone of sustained success on Amazon, accounting for approximately 30% of marketplace sales.
1. Offering Discounts for Subscriptions
Maximizing Lifetime Value
Discounts and promotions serve as compelling incentives for both acquiring and retaining customers. Despite the initial cost to your brand, such investments often maximize the lifetime value of the customer through repeat purchases. Amazon’s Subscribe and Save program is a great resource for brands that sell consumable products — especially for product categories like Food and Beverage, Household, and Health and Wellness.
2. Effective Customer Retargeting Strategies
Leveraging WBX Glass
Retargeting buyers for repeat sales requires data-driven insights. WBX Glass, our proprietary technology, enables our advertising management team to formulate more custom audiences than any other agency. We use your first-party sales data and combine it with data from the Amazon Marketing Cloud to serve highly targeted ads across the Amazon DSP. WBX Glass also helps us measure total sales generated from new-to-brand customers over time, going beyond ad-attributed sales.
Timely and Relevant Retargeting
Retargeting ads should be not only relevant but also timely. Understanding the typical purchase window for your product is crucial. For instance, if your product is a once-a-year purchase, like holiday decorations, retargeting efforts should align with this cycle.
3. Optimizing Shipping, Delivery, and Returns
Customer Satisfaction Requires Efficient Shipping
Swift and reliable shipping and delivery are integral components of customer satisfaction. While brands may have limited control over carrier performance, processing orders promptly and strategically locating fulfillment centers can expedite delivery and lower costs.
Facilitating Returns
In the online shopping environment, returns are inevitable. Providing a seamless returns process builds customer confidence by demonstrating the brand’s trust in its products. Evaluate and enhance your brand’s returns management process to streamline this aspect of the customer experience.
Elevating Your Amazon Business in 2024
WBX Commerce is a performance-focused, tech-enabled Amazon advertising agency. We leverage our extensive Amazon experience and leading technology to acquire unrivaled numbers of new and repeat customers for our partners. Ready to take your Amazon business to new heights in 2024? Contact us today.
