Is Customer Loyalty on Amazon a Lost Cause?
It goes without saying, Amazon is the top e-commerce platform in the country. With more than 197 million people around the world shopping on Amazon each month, it’s no surprise that selling on Amazon is a top priority for retailers. With this in mind, selling on the platform doesn’t come without its challenges. In this blog post, we dive into customer loyalty on Amazon and why brands don’t have to sacrifice this element of strategy for an impressively large audience.
Building customer loyalty on Amazon has always been a challenge. There are tons of options for shoppers in one place, where they can compare pricing, reviews, and other variables before they make a buying decision. For one shopper, your product might be a clear choice. For another, someone else might have you beat on price or reviews. Even if a shopper has e ordered from you before, your name alone might not be enough to tilt the scales in your favor.
Brands leveraging Vendor Central have a markedly more difficult time building loyalty because they lack direct access to all shoppers. Sellers can’t connect with buyers directly unless they choose to follow your brand and receive updates.
What’s more, loyalty has become increasingly challenging over the years with the rise of social commerce and the subsequent rise of competition. With an influx in competition, loyalty is one of the few things that can help you grow your business. People who already know, trust, and like your brand and its products will keep buying from you even if you’re not going head-to-head with your competitors in all areas of strategy.
And even though Amazon is big and crowded, it is still one of the best platforms to include in your customer loyalty strategy. Here’s how to overcome the greatest challenges in creating loyal customers through Amazon.
Content & Creative are Key
You can’t earn brand loyalty until you first build brand awareness. Because of this, content and creative should not be overlooked, as they can be key differentiators for brands and make a strong first impression with shoppers. With great content and creative, brands have the opportunity to communicate their values, personality, and image, making it easier to stand out in shoppers’ minds.
At Code3, content and creative efforts are the foundation of our programs. This includes everything from product detail pages to image galleries, brand stores, persuasive copy, conversion-worthy graphics, and more. Our experts understand how to navigate the channel's guidelines and best practices to get more from the branded assets we produce. Our strategists are native to the channel and take creative risks that pay off.
Unlock the Power of Prime
More than 95 million people in the United States have an Amazon Prime membership. On a global scale, that figure more than doubles. And the average Prime member spends $1,400+ each year on the platform. From a customer’s perspective, it’s easy to see why. Amazon Prime offers shoppers several customer-centric benefits, including expedited service, two-day delivery, and discounts.
If you think you can’t compete with such services, remember the old saying: If you can’t beat ‘em, join ‘em. Loyal Amazon customers can be your loyal customers, too. Since more than half of all products sold on Amazon come from third-party sellers, those customers are not just buying from Amazon—they’re buying from businesses like yours!
As a bonus, products that have a Prime badge earn a better search ranking as Prime members shop more frequently. In fact, many shoppers only purchase items on Amazon that have a Prime badge. This is because consumer trust in Amazon is so high. In one survey, 89% of participants said they trust Amazon. That trust goes a long way when it comes to turning buyers into Prime Members.
Turn On Subscribe and Save
Brands that sell in replenishable categories like food and grocery or beauty and healthcare have an ace up their sleeve with Amazon’s Subscribe and Save program. Shoppers get a discount when they sign up for a product subscription, and brands have the comfort of recurring revenue.
Amazon's Subscribe and Save program is extremely popular among Code3 clients, especially those in the grocery, CPG, and health-related categories. Applicable brands can leverage Subscribe and Save to offer a discount—built into Amazon's platform—to encourage repeat purchases.
The Subscribe and Save feature has become even more popular among consumers due to COVID. If you haven’t experimented with this feature already, now is a great time to leverage it for your brand to increase sales and build customer loyalty.
Subscriptions improve your bottom line and loyalty efforts not only on Amazon but also among other marketplaces and retail locations where you sell your products. People who become accustomed to your subscription products might start to recognize you in other places, leading to an overall stronger brand.
Retarget Customers via Advertising
Customers that find you on Amazon but don’t purchase aren’t lost forever. Retargeting via advertising lets you keep the conversation going and encourages shoppers to come back and purchase. Studies show that 3 in 4 people notice retargeted ads. And, more than 7% of them will respond to those ads, especially if they include a special offer.
On Amazon, retargeting via Sponsored Display allows brands to buy performance media placements. This makes it possible to get your products in front of shoppers that have bought the product before. The only caveat is that brands need to be enrolled in the Brand Registry to gain access to this ad type.
Another way to advertise and create brand loyalty is through Amazon’s Demand Side Platform (DSP). Through DSP, brands can get more sophisticated with their targeting techniques. This includes the use of display, video, and audio ads, both on and off Amazon. You can segment and target exclusive Amazon audiences, remarket to audiences that have visited your product pages, and even reach new customers off-site.
Last but not least, we've seen great results with OTT (over the top) advertising when trying to increase brand loyalty. OTT ads stream directly to your audience’s smart TV or subscription service like Netflix. They’re highly efficient and targeted to help you see an admirable ROI, plus they help you clear the red tape that typically comes with advertising with large TV networks.
To make the most of your retargeting options on Amazon, it's crucial to ensure your keyword strategy is front and center. This way, you can attract past purchasers and net-new customers that may be searching for competing products (also known as conquesting). If you choose to use this tactic, don't forget to set aside a budget for defending your brand's search terms since competitors could use this same tactic against you.
Customer Loyalty Begins with Insight
Building customer loyalty on Amazon means understanding who your current customers are. From there, you can start connecting with them to keep them coming back. But since brands currently don't (and may never) have insight into customer data and other key information, it's important to be savvy and tap into the proper expertise.
That’s why Code3 is on your side. For years, we’ve offered marketplace support on Amazon, Walmart.com, Instacart, Kroger, and more to help you make the most of your current and prospective customers. We ensure your efforts are streamlined with your media and creative efforts across the major digital platforms like Facebook, Instagram, TikTok, Snapchat, and more.
We focus on customer loyalty across platforms for the brands we work with and can successfully measure this through our proprietary technology, Code3 Insights. Learn more about our approach to customer loyalty on Amazon and beyond by reaching out.
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