Posted by Nojus Latvinskas
It is easier to sell to existing customers than to find new ones. We've all heard a message that goes something along these lines in the marketing world. But how can you effectively implement this strategy on Amazon? Let's explore the world of remarketing on Amazon and how you can leverage it to boost sales and customer loyalty.
Remarketing on Amazon is a crucial strategy for reaching customers who have previously interacted with your brand. Unlike traditional advertising, remarketing focuses on users who have shown an interest in your products but may not have made a purchase yet. By targeting these potential buyers, you can increase conversion rates and drive additional sales without the need to attract entirely new audiences.
Remarketing allows you to reinforce your brand message and remind potential customers of the value you offer. This approach is particularly effective in today's competitive market, where consumers are bombarded with numerous product options. By staying top-of-mind with remarketing, you increase the likelihood of converting interested viewers into loyal customers.
Sponsored Display (SD) campaigns play a pivotal role in Amazon's advertising ecosystem. These campaigns enable you to engage with a specific audience through targeted ads across Amazon's vast network. When you have a solid foundation with Sponsored Brands (SB) and Sponsored Products (SP) campaigns, SD campaigns can enhance your strategy by focusing on acquiring new customers and remarketing to previous ones.
With SD campaigns, you can target users based on their shopping behaviors and interests. This approach allows you to tailor your advertising strategy to reach customers who have already engaged with your brand or similar products. By leveraging SD campaigns effectively, you can tap into a pool of potential buyers who are more likely to convert, thereby increasing your overall sales and brand presence on Amazon.
Acquiring new customers is a critical aspect of any business strategy. SD campaigns provide a unique opportunity to reach fresh audiences on Amazon. These campaigns function similarly to Facebook Ads, requiring a process of experimentation and testing to identify high-performing audiences. By analyzing customer behavior and preferences, you can fine-tune your targeting to maximize the effectiveness of your campaigns.
To expand your reach, consider targeting audiences based on interests, in-market segments, and lifestyle preferences. This broad targeting approach allows you to connect with potential customers who may not have been exposed to your brand before. By casting a wider net, you can attract new customers and drive incremental sales, ultimately contributing to your company's top-line growth.
Customer lifetime value (CLV) is a key metric that determines the long-term profitability of your business. By increasing the CLV, you ensure that each customer contributes more to your brand's success over time. Remarketing on Amazon is a powerful tool for enhancing CLV, especially if you offer consumer packaged goods (CPGs) or consumables that lend themselves to repeat purchases.
By setting up SD campaigns that target customers who have purchased your products within specific time frames (e.g., 30, 60, 180, or 360 days), you can remind them of the benefits of your products and encourage repeat purchases. This strategy keeps your brand at the forefront of their minds, prompting them to return to your products whenever they need a replenishment. As a result, you can build a loyal customer base that consistently generates revenue for your business.
Competitor remarketing is an advanced strategy that allows you to capture market share from your rivals. By identifying competitors whose products are similar to yours, you can target customers who have previously purchased from them. This approach positions your brand as a viable alternative, enticing customers to explore your offerings.
To implement this strategy, create SD campaigns that focus on customers who have shown interest in competing products. By showcasing your unique selling points and highlighting the advantages of your products, you can persuade these customers to consider switching to your brand. Competitor remarketing not only helps you gain new customers but also allows you to establish a stronger presence within your niche.
In addition to purchases remarketing, Amazon offers "Views Remarketing," which targets customers who viewed your product detail page but did not make a purchase. This strategy is particularly valuable because it allows you to engage with interested viewers who are on the verge of making a buying decision.
Views remarketing enables you to re-engage with potential customers by displaying tailored ads that address their specific needs and preferences. By reminding them of your product's benefits and offering incentives such as discounts or promotions, you can increase the likelihood of converting these viewers into customers. This approach helps you capture missed opportunities and maximize the impact of your marketing efforts.
To evaluate the effectiveness of your SD campaigns, it's essential to track key performance metrics. If your goal is to acquire new customers, focus on New-to-Brand (NTB) metrics. These metrics provide insights into how many of your sales are coming from first-time buyers, helping you assess the success of your customer acquisition efforts.
For remarketing strategies, analyze Advertising Cost of Sales (ACOS) to determine how efficiently you are remarketing to previous customers. A lower ACOS indicates that you are effectively converting existing customers at a cost-efficient rate. By continuously monitoring these metrics, you can refine your campaigns and ensure they align with your business objectives.
In conclusion, remarketing on Amazon is a powerful strategy that can drive sales, enhance customer loyalty, and boost your brand's visibility. By leveraging SD campaigns to target both new and existing customers, you can create a comprehensive advertising approach that maximizes your marketing investment.
Have you started running SD campaigns on Amazon? Are you currently going hard on them? By implementing these remarketing strategies, you can unlock new growth opportunities for your brand and create a loyal customer base that keeps coming back for more.