Case Study

Brand Tailored Promotions Drove Repeat Purchase Growth by 6%

April 11, 2024

Metrics

6%

Repeat Purchase
Rate Growth

1%

Repeat
Purchase CVR

0.4%

New-to-Brand
Rate Growth

0.13-0.22%

New-to-Brand
CVR

Context

Amazon launched Brand Tailored Promotions Q3 of 2023, which enables sellers to craft personalized discounts and offers for both previous and potential Amazon customers. It empowers brand owners and sellers to offer special deals exclusively to customers who have interacted with the brand through both non-purchasing and purchasing activities.

For example, they could have viewed the product page or brand store and not have purchased. Or, they could have followed the brand but not purchased from it. See below for a full list of the different audiences and their definitions.

This strategy enhances your ability to foster loyal connections with Amazon shoppers and boost sales, all the while keeping – or even lowering – your promotional expenses.

Tactics + Conclusion

VENDO scheduled Brand Tailored Promotions throughout September & Q4 2023 using several audience types at different discount tiers, the majority being for repeat customers at a 10% Discount.

Conclusion

After looking back at the data for all of 2023 and comparing it to the first half of the year’s new-to-brand (NTB) and repeat customer growth, as well as comparing it to 2022 data, we saw anywhere between 0.3%-1.0% NTB growth and 2.2%-9.1% repeat customer growth in the Health & Household category; specifically, in the supplement’s subcategory.

Advertising spend/sales increase was also considered in the case study to ensure we were only accounting for direct sales growth attribution on Brand Tailored Promotions.

Other categories that had a more aggressive discount percentage reflected a higher conversion rate (2% CVR at 15% discount & 3% CVR at 20% discount), which had a higher impact on both NTB and repeat customer growth.

In summary, Brand Tailored Promotions overall are more repeat customer driven, although if running a promotion for “Potential New Customers” at a high discount rate (I.e., 20% OFF or higher), the brand’s NTB growth could be highly impacted.