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Maximize Conversions by Balancing Your Ecommerce & Amazon Strategy

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As your brand ramps up advertising and sales on Amazon, does your paid search cost increase and conversion rate decrease?
Identify the key insights you can implement in your Amazon strategy to allow you to get more from your AdWords campaign and vice versa.

Published in: Retail
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Maximize Conversions by Balancing Your Ecommerce & Amazon Strategy

  1. 1. Maximize Conversions by Balancing Your Ecommerce & Amazon Strategy THE Q4 ECOMMERCE BRAND ACCELERATOR VIRTUAL SUMMIT
  2. 2. Summit Details Tuesday, September 25th 10 - 10:45 AM PT ● CPC Strategy: Maximize Conversions by Balancing Your Ecommerce and Amazon Strategy 11 - 11:45 AM PT ● Trustpilot: Optimizing the Path to Conversion Leveraging Social Proof to Increase Sales 12 - 12:45 AM PT ● Nielsen Visual IQ: Crossing the New Digital Divide: Your Guide to Marketing Effectiveness Wednesday, September 26th 10 - 10:45 AM PT ● AdEspresso: 6 Ways To Retarget Audiences Using Facebook Ads To Maximize Revenue During Q4 11 - 11:45 AM PT ● Privy: How Top Ecommerce Merchants Approach Cart Abandonment
  3. 3. ● Session Recording & Slides Will Be Sent Out ● Submit Questions to Our Panelists ● Resources Available as Handouts ● Join in the Poll Question! Analicia Santaella Webinar Coordinator Today’s Logistics
  4. 4. Overview Founded in 2007 Google Premier Partner 500+ Active Retail Clients Top 50 Fastest Growing Company San Diego D E L I V E R I N G L A S T I N G R E S U L T S F O R O U R C L I E N T S Solutions Retail-focused PPC & Shopping Amazon Sales Acceleration Facebook Performance Marketing Creative Services About CPC Strategy
  5. 5. Lewis Brannon Sr. Retail Search Manager Today’s Speaker Michael Ward Lead Retail Search Manager
  6. 6. Today’s Agenda ● Poll ● Ecommerce 101 & Direct-to-Consumer (D2C) Benefits ● Amazon & Ecommerce Channel Comparison ● Cross-Channel Resource Allocation & Merchandising Strategies ● Integrating Insights across Channels to Maximize Performance ● Key Takeaways - Next Steps
  7. 7. Ecommerce 101 & D2C Benefits
  8. 8. Benefits of a Direct-to-Consumer Approach ● Establish your brand story to connect with target ● Amazon matches with premium content Brand Equity First-Party Data Lifetime Value ● Build email lists ● Strategize repeat purchases ● Find similar customers ● Acquire new customers at a lower cost ● Foster a direct relationship with you customers ●Turn revenue acquisition into customer acquisition ● Mathematical outcome of customer relationships
  9. 9. Why Foster Customer Lifetime Value? The top 1% of customers are worth 18 times more than the average customer The Likelihood of a customer to make a second purchase is close to 30%, for a third purchase it jumps past 50% The fastest growing ecommerce companies have a customer lifetime value 79% higher than their peers RJ Metrics 2017
  10. 10. Why Foster Customer Lifetime Value? More than just revenue / profit acquisition, acquire customers Why focus on CLV? ● Rising cost of customer acquisition ● Increasing competition ● Top 20% of customers generate roughly 70% of your total revenue How to use CLV? ● Leverage first-party data ● Find similar audiences ● Acquire customers at lower cost
  11. 11. Amazon & Ecommerce Channel Comparison
  12. 12. Fish Where the Fish Are: Amazon Why Sell on Amazon? ● 54% of product searches begin on Amazon Why Sell on Your own site? ● Think long term: D2C Ecommerce Strategy Jumpshot 2018
  13. 13. Channel Comparisons - Acquiring Traffic & Cost of Revenue Traffic Acquisition & Cost of Revenue Amazon Ecommerce ● Amazon generates ● On Amazon advertisement ● Off Amazon traffic ○ *Attribution ● Amazon fees ● Advertising costs ● Fulfillment ● Paid ● Earned ● Owned ● *Retailer is responsible ● Site Development & Upkeep ● Advertising Costs ● Fulfillment
  14. 14. Channel Comparisons - Branding & Brand Equity Branding & Brand Equity Amazon Ecommerce ● PDP Content ○ EBC & A+ ● Amazon Storefront ● Non-Ecomm Site ● DSP (F.K.A. AAP) ● Site - Brand Launchpad & Content Hub ● Retargeting ● Email ● Social Channels
  15. 15. Channel Comparisons - Branding & Brand Equity Customer Retention & LTV Amazon Ecommerce ● DSP (F.K.A. AAP) ● Retargeting to past purchasers ● Gated data sets ● Search & Display Retargeting ● Email ● Blog ● 1st Party Data
  16. 16. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty
  17. 17. Cross Channel Strategies - Resource Allocation
  18. 18. Resource Allocation All about profit
  19. 19. Resource Allocation: Maximize Per-Channel Profit $600K $0 $200K $300K $500K $800K $700K Cost per sale (Efficiency) $30 $60$0 $120 $180 Revenues Profits Where you are $90 $150 TotalInvestment(Volume) Maximum profitability
  20. 20. Resource Allocation Channel Characteristics Amazon Ecommerce ● Demand capture machine ● Product search starts here ● Limited ability to tell brand story & foster loyalty ● Must generate own traffic ● Brand launchpad ● Engine of customer loyalty**
  21. 21. ©Copyright AdDiego 2018 | Presented by CPC Strategy =IF > +CLV Resource Allocation
  22. 22. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty * Omni-channel Optimized Merchant
  23. 23. Cross Channel Strategies - Merchandising
  24. 24. Merchandising - Pros of Product Launch on Ecommerce ● Take advantage of social / branding investment by driving traffic to Ecommerce ● Collect Search / keyword data ● Create exclusivity / FOMO
  25. 25. Merchandising - Pros of Product Launch on Amazon ● Conversion rate highest ● Organic halo effect ● Product review generation ● Attribution is important
  26. 26. Merchandising Strategies - Web Exclusives +28% lift in eComm conversions as a result of pushing web exclusive offers via aligned paid media campaigns ● FOMO ● Reward customers for engagement ● Encourage advocacy ● Increase LTV +36% lift in category sales (YoY) and +14% lift in CVR as a result of pushing web exclusive colorways
  27. 27. Integrating Insights to Maximize Performance
  28. 28. Integrating Insights to Maximize Performance Keywords / Search Queries Product Sales / Velocity / Trends Scaled Ad Copy Learnings Impression Share / Auction Insight
  29. 29. Keyword/Query Reports ● Eliminate guesswork ● Mine for opportunities ● Accelerate growth Sales Velocity ● Strategic bidding ● Merchandising / Assortment insights ● Budget planning Auction Insights ● Budget planning ● Added context for CPC shifts ● Allow for strategic testing Integrated Insights - Key Reports
  30. 30. Integrated Insights - Omnichannel Reporting Hub
  31. 31. Key Takeaways
  32. 32. What You Should Do Next Next Steps as an Amazon-only Seller: ● Secure your Amazon foundation is strong & profitable before launching Ecommerce Next Steps as a Ecommerce-only Seller: ● Remember your shoppers are on Amazon too ○ Optional Strategy: Selective product release ○ Optional Strategy: Amazon as a liquidation channel with discounts ○ Optional Strategy: Amazon as full price catalog capturing active intent Next Steps if Selling on Both: ● Integrate cross-channel Insights ● Allocate resources considering channel profitability
  33. 33. Channel Comparisons - Strong Points Immediate Sales Velocity CLV & Brand Loyalty Omni-channel Optimized Merchant
  34. 34. SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Schedule Your 1-1 Paid Search & Ecommerce Evaluation
  35. 35. Questions for Today’s Speaker? Lewis Brannon Sr. Retail Search Manager Michael Ward Lead Retail Search Manager

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