Seven vital tactics to improve lifetime value on Amazon using Nozzle.ai:
Many brands and sellers obsess with ACOS (or Customer Acquisition Cost) on Amazon, but often neglect lifetime value.
Understanding your loyal customers is key to long-term profit, as increasing retention by just 5% causes a company’s profitability to increase by an average of 75%!*
So here are a few super useful tactics to target consumers that I have found while analysing brands on Nozzle:
1 - Understanding the winder of repeat purchases is key for optimising remarketing activity using DSP
2 - Having insights into what consumers bought next can dictate the best products to add to A comparison tables, storefront landing pages or twisters to boost upsells and cross-sells
3 - Use cohort analysis to understand the uplift in repeat purchasing via subscribe and save when using e.g. SnS vouchers
4 - Having insights into bundle variations (hard or virtual) to boost AOV average order value and boost loyalty via value options, especially in grocery as you encourage long-term usage.
5 - Using cohort analysis to understand the increase in repeat purchase behaviour based on pricing.
6 - Stategic insights into whether Prime Day / Black Friday deals are effective at driving lifetime value or are just discounting products for loyal customers anyway!
7 - Understanding the optimum Customer Acquisition Cost to boost new customer acquisition vs long-term profit of the brand.
This post was inspired by Simon Ellicott who saw I post a lot about Nozzle but perhaps did not explain its benefits enough, so here you go Simon!
*Bain & Company Inc study.
If you are interested check out Nozzle here >>> https://www.nozzle.ai