Driving Business Results on Amazongo.clavisinsight.com/rs/573-RCS-461/images/Driving... ·...
Transcript of Driving Business Results on Amazongo.clavisinsight.com/rs/573-RCS-461/images/Driving... ·...
B o s t o n | D u b l i n | L o n d o n | P a r i s | S h a n g h a i
Driving Business Results on Amazon
Presented By:
Melissa Burdick - Leigh & Burdick | Day 1 Digital
Danny Silverman – Clavis Insight
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About Clavis Insight –The Industry Leader in online retailer monitoring and analytics for
manufacturers
Dynamic monitoring and analytics for governance and measurement
Performance reporting to prioritize actions that drive growth
Content auditing and analytics that help protect and enhance brand equity
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Today’s Speakers
Melissa Burdick spent a decade at Amazon.com 2005-2015. She helped structure the early strategy for the retail consumables business and launched 300 CPG manufacturers from P&G to Burt’s Bees. She also was an early member of the Advertising team (AMG), creating the first ecommerce ads and sponsorships for Amazon’s programs. She now helps brands with their ecommerce strategies with a specialty in effective marketing and designing for online profitably. She is a partner is an ecommerce strategy consulting firm (Leigh & Burdick) and founder of an Amazon marketing company Day 1 Digital.
Danny Silverman leads product and corporate marketing at Clavis Insight. He is an established industry thought leader with over 14 years of experience helping CPG/FMCG brands grow online presence and sales. Prior to joining Clavis Insight, he led the Sales Strategy & Support practice at Catapult eCommerce. Before that, he spent eight years at Johnson & Johnson where he was responsible for spearheading J&J’s eCommerce strategy and capability.
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About Leigh & Burdick and Day 1 Digital
With a combined 20-years ex-Amazon experience, Andrea Leigh & Melissa Burdick run a strategy advisory firm that develops winning strategies for brands to accomplish their goals on Amazon, including pricing and assortment strategy, marketing and optimizing for Amazon’s algorithms, supply chain, designing product for online, organizational structure, negotiation, ecommerce education and workshops, and more
With Amazon it’s always “Day 1”. Day 1 Digital is a marketing agency focused on strategy and execution of Amazon’s self-service marketing platforms of paid search and display advertising. Day 1 has earned their Advertising platform accreditation and is comprised of former Amazonians and Googlers
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Building Your Amazon Playbook
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The Vendor Flywheel Strategy: BUILD | Drive | Earn
BUILD
Right
Assortment
In-Stock
AvailabilityContent SEO Enhanced
Content
Consumer
Reviews
Source: Chris Perry, RNG; Build | Drive | Earn methodology originally created by IRI
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The Vendor Flywheel Strategy: BUILD | DRIVE
BUILD DRIVE
Subscribe
& Save
Promotions
MerchandisingAMS Search
AMG Media
Right
Assortment
In-Stock
AvailabilityContent SEO Enhanced
Content
Consumer
Reviews
Source: Chris Perry, RNG
© Clavis Insight
The Vendor Flywheel Strategy: BUILD | DRIVE | EARN
BUILD EARN DRIVE
Subscribe
& Save
Promotions
MerchandisingAMS Search
AMG Media
Right
Assortment
In-Stock
AvailabilityContent SEO Enhanced
Content
Consumer
Reviews
More
Reviews
Search Rank
OpportunitySales
Growth
Share
GrowthSocial Sharing
Source: Chris Perry, RNG
© Clavis Insight
Market the right offerings on the right platforms
• Everyday Shopping
• Planned
• 1P & 3P
• Multi/Club Packs & Cases e-Commerce SKUs & Packs
• Target ASP: $15
• Basket Building
• Planned
• 1P Only
• Multi/Club Packs –smaller qty than core
• Target ASP: $3-7
• Same-Day Delivery
• Planned
• 1P Only
• Perishable SKUs
• Target ASP: $2-10
• 1-2 Hour Delivery
• Impulse
• 1P Only
• Special Launches
• Target ASP: $2-10
• B2B Shopping
• Planned
• 1P & 3P
• Multi/Club Packs & Cases e-Commerce SKUs & Packs
• Target ASP: $15-30
BUILD
© Clavis Insight
Ensure you have the right formats for online
Bundles – cross category & brand
Light WeightDehydrated
Packaging
BUILD
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Amazon is a Price Follower, not a Leader
2020
$15.99 $9.97
$7.99$5.99
SAVE $2.00WITH COUPON
Ineligible for Marketing & Promotions
CRaP: Can’t Realize any Profit
Pressure to lower costs to Amazon or provide additional funding
Lots of stages and severity of CRaP ( i.e. pre-CRaP)
CRaP status inhibits growth of your items
Amazon philosophy – CRaP is the vendor’s problem
Don’t ignore CRaP
BUILD
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Empty Shelves = Empty Carts = Wasted Marketing $
*1P Brands have very little control over their inventory –especially challenging for new items
BUILD
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Third Party Manages Their Own Inventory
Most limited manufacturer control: Amazon prices and makes supply decisions
Best for brands with richer margins whose products fit nicely into Amazon’s fulfillment model
3P MARKETPLACE1P - RETAIL 3P FBA (2P) HYBRID: 1P+2P+3P
Significant manufacturer control: Pricing, inventory
Best for brands seeking to circumvent Amazon’s price matching and as backup supply
Sell via multiple channels
Most manufacturer control in this model
More challenging to go from 1P to 2P or 3P
Best for brands who want ultimate flexibility and control
Significant manufacturer control: Pricing, inventory
Manufacturer ships product directly from their warehouses
Typically not Amazon Prime-eligible
BUILD
© Clavis Insight
Above the fold content = Search RelevanceBelow the fold content = Conversion
ABOVE THE FOLD BELOW THE FOLD
ROLE: Search RelevanceAMAZON COST: Free to upload panel images and videos
ROLE: Conversion
AMAZON COST: $100’s/page and up for self-service and custom builds
Live Links
BUILD
© Clavis Insight
The Amazon Detail Page Algorithm
2 Factors: Relevance & Performance
I.) Relevance: Amazon’s search algorithms prioritize detail page content in the following order:
1. Titles2. Bullet Points3. Attributes4. Product Description
II.) Performance: how Amazon ranks products• Sales Velocity• Sales History• Inventory Levels• Price• Detail Page Conversion• Product Reviews
Improve Your Metrics:• Ensure product titles & content are
SEO optimized
• Ensure bullet points have all the relevant information
• Know what keywords convert –integrate into your content
• Read customer questions – provide responses and update bullet points to answer pain points
• Get (recent) reviews – leverage Vine
BUILD
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Employ a Mobile First Strategy
80% of customers shop Amazon via Mobile
43% of customers shop exclusively via mobile
Mobile optimized images & content
Invest in marketing programs (paid search & display advertising)
BUILD
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When Brand Matters Less, Reviews & Price Matter More
Key Decision Factors:
Star Rating # Reviews Selling Price Available Promotions Prime Eligible
BUILD
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When Brand Matters Less, Reviews & Price Matter MoreBUILD
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Reviews are critical
94% of Amazon visitors consult customer reviews on Amazon*
Recency matters – continuous inflow of reviews Negative reviews – respond & contest New items – launch with reviews (Vine)
Tools like Clavis can quickly identify review gaps by item
BUILD
*PowerReviews, Mapping the Path to Purchase June 2016
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The Vendor Flywheel Strategy: DRIVE
BUILD DRIVE
Subscribe
& Save
Promotions
MerchandisingAMS Search
AMG Media
Right
Assortment
In-Stock
AvailabilityContent SEO Enhanced
Content
Consumer
Reviews
© Clavis Insight
3 Pillars: Merchandising, Paid Search, Display Advertising
Flat Fee $ Amazon Marketing ServicesCost Per Click (CPC) $
Amazon Media GroupCost Per Thousand (CPM) $
AMG MediaAMS SearchMerchandising
Sponsored Products
Headline Search
Product Display
DesktopMobile
Link In(Amazon Detail Page)
Link Out(Brand Site)
Desktop Mobile Kindle AudienceFire TV
SamplingOffers
DRIVE
© Clavis Insight
Customers love price discounts
Deal Type Duration Min % Off
Price Discount Up to 12 mos Any
Deal of the Day 1 Day >20%
Best Deal Up to 2 weeks >10%
Lightning Deal Up to 6 hours >15%
Coupon (VPC) Up to 12 mos Any
Promo Code Up to 30 days >15%
Alexa Deal 1 Week+ >any
DRIVE
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It’s not enough just to have a promotion – you have to plan additional traffic drivers for better discoverability
Brands leveraged their own social media channels & Amazon marketing levers to promote their offers
DRIVE
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With 55% of product searches starting on Amazon*, investing in paid search is essential
Sponsored Products Headline Search Product Display Ad
1P & 3P 1P & 3P* 1P Only
*Headline Search Ads just recently opened up to 3P = more potential competition
DRIVE
*Bloomreach
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Product Display Ads have worse ROI – but can serve as a good and relatively cheap marketing platform
DRIVE
Homepage – lots of traffic
Leveraging Designer Protein’s AMG
Strong Call to Action –Persuade to Convert?
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Newly Launched: Brand StoresNEW!
www.amazon.com/amazonbasics
• Own a unique Amazon web address
• Create multiple pages to showcase your product catalog
• Start with pre-made mobile and desktop layouts
• Receive traffic from Amazon search and detail pages
• Use Headline Search Advertising to drive traffic to your store
*They are FREE – because you have to pay to drive traffic to them
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Paid Search Tips
1. Setup & structure are extremely important – spend time here2. Run always-on campaigns with seasonal ramp-ups 3. Amazon Search (product focused) is not Google Search (intent/solution focused)4. Play both offense and defense – set different KPIs for different strategies5. Use features with grain of salt (Bid+, Win Rate)6. Reporting is painful – outside work is typically required to manage your business7. Don’t “set & forget” for optimal results
DRIVE
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5 key display advertising platforms – leverage mobile & AAP for entry
Desktop
(Owned & Operated)
AAP
(Audience Extension)
Mobile
(App & WAP)
Fire TV Kindle
$$ $$ $-$$$ $-$$ $
DRIVE
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AMG Targeting is powerful – develop a strategic framework with well-defined KPIs & measure results
DRIVE
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Targeting Example:Find customers who’ve bought Brand & encourage subscription
KPI: Subscription Penetration Increase
1. BUY TREAT2. AAP RETARGETING
OFF-AMAZON WITH SUBSCRIBE & SAVE AD
3. DRIVE TO PRODUCT PAGE WITH SUBSCRIBE
& SAVE ON DEFAULT
DRIVE
© Clavis Insight
6 Factors Influence AMG Results
1. a) Retail Readinessb) Proper setup for tracking 2. Targeting
3. Creative
4. Call To Action
5. Platform 6. Landing Page
DRIVE
Tip: Track Meta-data at a campaign level – many variables influence performance
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Prioritizing What Drives Value
1. Search algorithm basics - If you don't show up in search, you don't exist2. Have to have enough content to convert3. Need to be in stock4. Must have negotiations leverage in order to profit5. Leverage effective and efficient marketing vehicles (paid search & media – especially AAP & Mobile)6. Ability to report & measure results & impact
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Measuring the Success of Your Amazon Playbook
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Here’s how it works:
5 Ps are within your direct control
• Product
• Placement
• Price
• Promotion
• Perfect Page
PRICE
PLACEMENT
PROMOTIONPRODUCT
PERFECT PAGE
To organize and prioritize eCommerce intelligence and actions, we have pioneered a familiar, yet powerful framework
These 5 Ps drive the 6th P:
• Performance: Search, Sales, Share
PERFORMANCE
Clavis 6Ps eCommerce Intelligence™
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Applying the 6Ps framework to Amazon analytics will help organize and prioritize insights, actions, and results
PRICE
PLACEMENT
PROMOTION
PRODUCT PERFECT PAGE
PERFORMANCE
• Margin• MAP and 1st Mover
• 1p vs 3p
• Promotions• AMS
• Buy Box • Availability
• Shopper Q&A• Ratings & Reviews• Content Integrity
• Sales and Best Sellers• Category share• Search Rank
© Clavis Insight
Page Analytics to Consider: Above the Fold
Is the image correct?
How many bullets?
What’s the price?
Is it on Subscribe & Save?
Who are the other sellers?
Are there variations?
Is there a video?
Is there a lower price?
Who has the Buy Box?
What’s their reputation?
Is it in stock?
Is the product content correct?
How many images?
© Clavis Insight
Page Analytics to Consider: Below the Fold
Are there promotions on the page?
Is there A+ content?
How are AMS campaigns
performing?
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Page Analytics to Consider: Shopper Generated Content
How many questions and answers are
there?
What are my Ratings & Reviews statistics?
What questions are shoppers asking?
Are there keywords shoppers use?
Are there keywords shoppers use?
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Performance Analytics
How is my business trending?
How are sales vs. goals?
What are my best sellers?
Are there CRAP risks?
What’s my category share?
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Questions and Answers
Danny SilvermanMelissa Burdick
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Clavis leading-edge proprietary technology automates online store monitoring, at scale, so that teams can focus on taking actions
Our technology harvests data from online retailers anywhere
in the world…
…and captures anything shoppers might see on desktop,
mobile web or app…
…to present standardized, organized and actionable
analytics and insight
© Clavis Insight
Clavis Insight OneView for Amazon is a complete analytics and insights solution to maximize sales and win on Amazon
OneView Dashboard
Sales Analytics
Buy Box Analytics
Best SellerAnalytics
Margin Analytics
Promotions Analytics
AMS Campaign Analytics
Reviews Analytics
Q&A Analytics
First Mover Analytics
3P Brand Protection
Amazon Category Share*
Premium Options
OneView for Amazon Reports
OneView brings it all together with over
200 points of actionable analytics!
Vendor Central AMS
Amazon.com Clavis
Phased roll-out to all Amazon markets*
*Release dates TBD
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Questions and Answers
Danny SilvermanMelissa Burdick
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Coming Attractions
October 4 | The Exchange, BostonClavis Insight
eCommerce Accelerator Summit
September 26 | ChicagoPath to Purchase Institute eCommerce Symposium
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Boston| Dublin | London | Paris | Shanghai
6Ps eCommerce Analytics™
Thank you!
For More InformationVisit clavisinsight.com | Email [email protected]