How can you ensure your Amazon store stands out from the crowd? The answer lies in new customer acquisition - the ability to captivate and convert new customers.
By attracting new buyers and converting them into loyal patrons, you can expand your reach, boost sales, and achieve your Amazon store goals. However, capturing and converting new customers on Amazon can be quite challenging due to the fierce competition, ever-evolving algorithms, and the intricate nature of Amazon's advertising platform.
Enter Google Ads, a powerful tool that can transform your Amazon customer acquisition strategy. By leveraging Google Ads, you can reach high intent customers who are actively searching for products related to your Amazon listings, drawing them to your products and increasing your chances of conversion.
In this blog post, we'll explore the intricacies of new customer acquisition on Amazon, discovering how Google Ads and Ampd can empower you to capture your target audience, drive traffic to your product listings, and achieve sustainable growth on Amazon. Let's get started.
How to Measure New Customer Acquisition
Customer Acquisition Cost (CAC) is a fundamental metric that measures the average cost of acquiring a new customer. It is calculated by dividing your total marketing and sales expenses by the number of new customers acquired during a specific period.
CAC = (Total Marketing and Sales Expenses) / (New Customers Acquired)
For example, if your total marketing and sales expenses for a quarter are $10,000 and you acquired 100 new customers during that period, your CAC would be $100.
Lifetime Value (LTV) represents the total revenue you expect to generate from a customer over their lifetime relationship with your business. It encompasses all the purchases, repeat purchases, and referrals that a customer is likely to make throughout their association with your brand.
LTV = (Average Purchase Value) * (Average Purchase Frequency) * (Average Customer Lifespan)
For instance, if your average purchase value is $50, your average purchase frequency is 4 times per year, and your average customer lifespan is 2 years, then your LTV would be $400.
Measuring customer acquisition is crucial for understanding the effectiveness of your marketing efforts and making informed decisions to optimize your strategy. CAC and LTV are two key metrics that can help you assess your customer acquisition performance. Next, let's go into how Google Ads can empower you to capture your target audience and drive new customer acquisition on Amazon.
Google Ads to Amazon: The Customer Journey
Effective customer acquisition on Amazon necessitates targeting potential customers at every stage of the funnel. Google Ads plays a pivotal role in this process, offering a range of targeting options tailored to each stage:
- Awareness: With Google Ads, you can reach potential customers actively searching for products related to yours, ensuring your listings appear when they're most receptive.
- Consideration: Your Google Ads campaigns allow you to showcase your products across the web, targeting potential customers as they browse and consume content.
- Decision: You can display your product listings directly on Google search results, providing a direct path to purchase for decision-ready customers.
- Retention: Remarketing campaigns target customers who have previously interacted with your website or products, reminding them of your brand and encouraging repeat purchases.
- Advocacy: On top of Amazon's Brand Tailored Promotions, Google Ads campaigns allow you to target existing customers with tailored messaging, nurturing their loyalty and encouraging advocacy.
Omnichannel Marketing: Enhanced Customer Acquisition
Shoppers who engage with multiple channels throughout their buying journey demonstrate a 30% higher lifetime value than those who rely on a single channel. Omnichannel marketing effectively harnesses this tendency by seamlessly integrating various channels to deliver a consistent and unified brand experience across all touchpoints. This cohesive approach not only enhances customer engagement but also empowers businesses to effectively reach, convert, and retain potential customers.
Here's how omnichannel marketing can amplify your new customer acquisition efforts on Amazon:
- Expand your reach beyond Amazon by leveraging Google Ads' Search and Display campaigns to capture high intent customers actively seeking relevant products.
- Maintain consistent messaging and identity across all customer touchpoints to enhance trust, recognition, and brand appeal.
- Craft personalized customer journeys using Google Ads' targeting capabilities to boost engagement, conversion rates, and customer loyalty.
- With Amazon's Brand Tailored Promotions, leverage Google Ads' remarketing campaigns to seamlessly guide customers between channels and encourage them to complete their purchase on Amazon.
- Optimize marketing investments by leveraging cross-channel attribution to identify the most effective channels for customer acquisition and refine Google Ads campaigns accordingly.
Capture Your Target Audience with Google Ads and Ampd
Get ready to acquire new customers and drive more traffic to your Amazon store when you partner up with Google Ads and Ampd!
Boost up your campaigns with the power of AI from keyword research and ad creation to bid management and performance tracking ~ sign up with Ampd today to save time, eliminate guesswork, and ensure that your Google Ads campaigns are always aligned with your Amazon store objectives. Book a demo now!