Amazon’s Brand Tailored Promotions is a game-changer for brands and sellers looking to target specific customer segments. By understanding each segment and tailoring promotions accordingly, businesses can drive sales, increase brand loyalty, and optimize their advertising spend.
What is Brand Tailored Promotion?
Brand Tailored Promotion is a feature on Amazon that allows brands to offer exclusive discounts to specific customer segments. This ensures that promotions are targeted, leading to higher conversion rates and a better return on advertising spend. These segments are based on customers’ shopping behaviors, allowing brands to target their promotions more effectively.
Customer Groups and Strategies
| Customer Group | Definition | Strategy for Engagement |
|---|---|---|
| Brand Followers | Customers who clicked to follow your brand in Amazon’s store. | Offer exclusive deals or early access to new products. |
| Repeat Customers | Customers who ordered your brand’s products more than once in the last 12 months. | Offer loyalty discounts or bundle deals. |
| Recent Customers | The most recent customers who purchased from your brand. | Consider other highly related product offerings or complimentary products. |
| High-Spend Customers | Customers who spent the most with your brand in the last 12 months. | Offer premium products or exclusive VIP deals. |
| Potential New Customers | Customers who clicked on your brand/products or added to cart but haven’t purchased in the last 12 months. | Provide first-time purchase discounts or limited-time offers. |
| Cart Abandoners | Customers who added your brand’s products to their cart but didn’t purchase in the last three months. | A timely discount may be the nudge needed to close the deal. |
Ideal Brand or Seller for Each Customer Group:
- Brand Followers: These are best suited for brands with a strong identity or niche products. Engaging followers can help in solidifying brand loyalty.
- Repeat Customers: Established brands with a range of products can benefit the most from this group, as these customers have already shown trust in the brand.
- Recent Customers: Brands with complementary products or services can upsell or cross-sell to these customers, maximizing the value of each sale.
- High-Spend Customers: Premium brands with higher-priced items can target this group to introduce them to other high-value products or exclusive deals.
- Potential New Customers: Brands launching new products or entering new markets can convert the interest of these customers into sales with the right incentives.
- Cart Abandoners: Brands with higher-priced items or those with products that have a longer consideration phase can re-engage these customers, nudging them towards completing their purchase.
FAQs
- How do Brand Tailored Promotions appear to customers?
Brand Tailored Promotions are displayed as limited-time offers on the product detail page, checkout page, and in the customer’s shopping cart. This visibility ensures that the promotion grabs the customer’s attention, increasing the likelihood of conversion. - How can I set efficient budgets for tailored promotions?
Start by analyzing the size of the customer segment you’re targeting. For larger segments, like potential new customers, allocate a more substantial budget. For smaller segments, like brand followers, a more modest budget might suffice. Monitor the promotion’s performance and adjust the budget as needed. - How does the promotion appear to the customers?
The promotion is prominently displayed in a green tab on the product detail page and search results page. It’s also highlighted during the checkout process, reminding customers of the savings they’re receiving. - How can smaller brands benefit from BTP?
While larger brands might target multiple customer segments simultaneously, smaller brands can focus on one or two key segments. This allows them to tailor their promotions more precisely, ensuring they get the most bang for their buck.