In this blog, we're exploring Amazon's latest features in Customer Loyalty Analytics and their potential to transform your e-commerce marketing strategies for Amazon brands.
Learning how to use these tools effectively can help you bring in new customers through personalized promotions. This can ultimately result in increased sales and a loyal customer base over time.
How was the Previous Customer Loyalty Analytics?
Back in October 2023, Amazon introduced Customer Loyalty Analytics, a game-changer for e-commerce marketing strategies. This tool helps brands send tailored promotions to New Potential customers and loyal customers who are TopTier, Promising, or At-Risk.
Brands can use Customer Lifetime Value (CLV) to predict which customers will increase, stay the same, or decrease their spending in the next year. However, one important area needed improvement. This area involved reaching out to the most influential declining audiences. It also involved studying the Cart Abandoners group.
What are Cart Abandoners and Declining Audiences?
Cart Abandoners are customers who have added products to their cart in the last 90 days but haven't completed the purchase. Declining audiences include two types: Declining Top-Tier customers, who were once loyal but are predicted to spend less, and Declining Promising customers, who show potential but are also predicted to decrease their spending.
These segments represent missed opportunities for brands, as they involve customers who have shown interest but haven't committed.
What is the Update in Customer Loyalty Analytics?
Amazon recently launched the Cart Abandoners and Declining Audiences features, allowing brands to send targeted promotions through Brand Tailored Audiences. This update allows brands to see their Cart Abandoners alongside other loyalty segments and send tailored promotions directly from the Customer Loyalty dashboard.
How Does It Work?
When brands access the Brand View of the Customer Loyalty Dashboard, they can now see recommendations to create tailored promotions for their Cart Abandoners audience. This process is simple:
- Select Audiences: Choose from Cart Abandoners and potential new customers.
- Customize Promotions: Set discount percentages (10%-50%) and define your budget.
- Allocate a Budget: Decide how much you want to spend on promoting your products to Cart Abandoners and Potential New Customers.
- Distribute Promo Codes: The selected customers receive a promo code they can use for a single product, making the offer exclusive and compelling.
Accessing Customer Loyalty Analytics
To access Amazon's Customer Loyalty Analytics and harness its powerful insights for your brand, follow these simple steps:
- Log in to Seller Central: Access your Seller Central account using your credentials.
- Navigate to "Brand Analytics":
- From the main menu, locate and click on "Brands".
- Select "Brand Analytics" from the dropdown menu.
- Explore Customer Loyalty Analytics:
- Within Brand Analytics, find and click on "Customer Loyalty Analytics".
- Here, you can filter by brand if you manage multiple brands, and select your preferred reporting period—whether weekly, monthly, quarterly, or yearly.
- Dashboard Overview:
- Upon accessing Customer Loyalty Analytics, you'll be presented with a comprehensive dashboard. This dashboard provides detailed insights into various customer segments, including Cart Abandoners and potential new customers.
- Insights & Recommendations:
- Utilize the "Insights & Recommendations" section to craft tailored promotions for specific customer segments. Here, you can customize promotions by setting discount percentages (ranging from 10% to 50%) and defining your promotional budget.
The data shown in the following images does not correspond to any actual brand, seller, or product.
Key Considerations for Customers
When creating campaigns utilizing Amazon's Customer Loyalty Analytics, it's important to note several key differences from previous promotions:
- No Combination with Other Promotions: Offers cannot be combined with any other promotions or discounts. If a customer is already using a discount code or participating in another promotion, they cannot apply the offer from this campaign simultaneously.
- Discount Limitations: The discount offered in this campaign applies to only one product per customer. Unlike previous promotions where discounts may have been applied to the entire order or multiple items, this campaign restricts the discount to a single product per purchase.
These differences are crucial for brands to consider when taking advantage of the promotions offered through Customer Loyalty Analytics. Understanding these limitations ensures a smooth experience and effective use of the discounts provided.
Why is This Important for Amazon Brands?
Engaging customers about to make a purchase or who have shown loyalty before is vital for Amazon brands. By targeting Cart Abandoners and Declining Audiences, brands can convert interest into sales and maintain relationships with valuable customers. This not only improves the customer experience but also boosts the brand's bottom line.
Why Should Brands Care?
Brands should care because personalized experiences are key to building customer loyalty. By using customer loyalty analytics, brands can understand the customer journey and create brand-exclusive promotions that resonate with their target audience.
This not only increases sales but also enhances the overall user experience, leading to higher net promoter scores (NPS) and positive word-of-mouth on social media platforms.
Real-World Example from XYZ Company
Consider XYZ Company, a clothing brand. The numbers were impressive last week: 187 orders, 4,371 abandoned carts, and nearly 6,000 potential new customers. Compared to last month, cart abandoners rose by 26%, and potential new customers increased by 74%.
While XYZ Company hasn't yet applied any strategy or used Customer Loyalty Analytics, this example highlights the increasing opportunity for brands to leverage these tools to engage and convert these audiences effectively.
By looking at how customers act and what they like, brands can learn more about what they want. This helps brands make their marketing strategies more fitting. This data helps brands create personalized promotions and offers that customers prefer, leading to more sales and happier customers.
Overall, these numbers highlight the importance of leveraging Customer Loyalty Analytics to optimize marketing efforts and improve the overall customer journey. Brands can use customer data analysis to make informed decisions, drive business growth and nurture long-term customer relationships.
Conclusion
Amazon's updated Customer Loyalty Analytics offers brands powerful tools for engaging both new and declining audiences with tailored promotions. Brands can use these insights to create positive customer experiences, boost sales, and enhance their customer loyalty programs.
Ensure you seize this opportunity to improve your e-commerce marketing strategies and maintain customer engagement!
To dive deeper, log into your Seller Central account and check out this handy guide on the Customer Loyalty Dashboard: Customer Loyalty Dashboard Reference Guide.
Stay tuned with Marknology for more tips and insights on boosting your brand's success on Amazon.
Happy selling!