Challenges Faced by Current Amazon Sellers
Most brands on Amazon often express challenges in tracking their Amazon customers, engaging with repeat customers due to a lack of meaningful tools, and analyzing customer purchase data.
A New Goldmine of Data
Amazon’s Customer Loyalty Analytics is designed to enable brands to view customers by segments, track metrics for new, potential, and repeat customers, monitor trends over time, and harness the power of predictive analytics for devising future strategies. By employing this approach, brands can gain a deeper understanding of customer purchase behaviors, ensuring that they engage the right customers at the most opportune moments, subsequently leading to an increase in the overall customer lifetime value.
Understanding the Value of Customer Loyalty
- Customer Lifetime Value (CLV): This is the present value of the predicted revenue from a customer throughout their relationship with a brand. CLV helps optimize customer acquisition costs and aids in the strategic allocation of marketing budgets.
- Loyal Customers Spend More: Statistics reveal that the top 10% of loyal customers spend three times more per order compared to the lower 90%. Additionally, repeat customers can spend between 153 to 397% more than first-time shoppers.
The Customer Loyalty Analytics Dashboard:
You have two dashboard views:
- Brand View: Segments customers into four categories – top tier, promising, at risk, and hibernating. This classification is done using the RFM methodology which considers recency, frequency, and monetary spend.
- Segment View: Allows a deeper dive into each segment, providing metrics and predictive analytics about each group’s future spending patterns.
- Top Tier Customers: They buy the most frequently and are your brand ambassadors. Engage them regularly to keep them loyal.
- Promising Customers: These are your potential loyalists. With the right engagement, they can be your next top-tier customers.
- At Risk Customers: They have not shown frequent buying patterns and might require specific incentives or offers to retain them.
- Hibernating Customers: These are customers on the verge of departure. Brands might choose to either re-engage them with strong messaging or reallocate resources to more promising segment.
Analytics in Action: Brand Tailored Promotions
In essence, to remain competitive, brands need to leverage analytics, especially when it comes to understanding and fostering customer loyalty. The Customer Loyalty Analytics dashboard seems poised to change the game, offering deep insights and actionable strategies for brands to strengthen their customer relationships and ensure sustained growth.
Complement your Customer Understanding at the ASIN-level with iDerive
For a deeper understanding of customer long term value, iDerive LTV models capture ASIN-level acquisition costs and lifetime value using both an acquisition month in a time-bound cohort and a product-level view. This helps brands understand which products are driving new-to-brand revenue growth vs long term value, to improve their product mix and targeting strategies.
Read “Mastering Customer LTV for Amazon Seller Success” for more information. Or schedule a demo below to take it and other dashboards for a test drive. 🏎️💨