52% New Customers! The Secret to 33% Explosive Amazon Sales Growth?

In a Nutshell Active Skin Repair achieved a 52% new-to-brand customer acquisition rate and 33% Amazon sales growth through AI diagnostics and a full-funnel advertising strategy.

What Happened Skincare brand Active Skin Repair was experiencing strong growth on Amazon, but faced challenges acquiring new-to-brand (NTB) customers due to a heavy reliance on existing customers. A significant 56% of their total ad spend was concentrated on branded search terms, and their Amazon DSP NTB purchase rate stood at a mere 36%.

To address this, Active Skin Repair collaborated with Amazon Ads partner Marshall Associates and Skai, a provider of AI-powered diagnostic technology, to re-strategize their growth with a strong focus on new customer acquisition. Skai's AI diagnostics helped them identify and reduce unnecessary branded search term expenditures, allowing them to restructure campaigns to prioritize new customer acquisition. They leveraged Amazon DSP to expose their brand to potential customers and utilized Amazon Marketing Cloud (AMC) to measure the effectiveness of their NTB acquisition efforts, optimizing both budget and targeting. Consequently, their Amazon DSP NTB rate surged from 36% to 52%, their Sponsored Ads NTB share climbed to 60%, and overall Amazon sales grew by an impressive 33% year-over-year.

Implications for Korean Sellers This case study demonstrates how Korean Amazon sellers can achieve sustainable growth by prioritizing new customer acquisition and implementing data-driven advertising strategies.

1. Optimize Branded Search Term Spend: If your brand awareness is already high, identify and exclude unnecessary spending on your own branded search terms. Reallocate that budget towards non-branded keywords or upper-funnel campaigns designed to attract new customers. This is a crucial step to boost your advertising efficiency. 2. Build a Full-Funnel Advertising Strategy: Emulate Active Skin Repair by implementing a full-funnel strategy that encompasses the entire customer journey, from upper-funnel (awareness) campaigns utilizing Amazon DSP to lower-funnel (conversion) campaigns powered by Sponsored Products. Diversify your new customer acquisition efforts by combining various Amazon ad products, such as Sponsored Brands and Sponsored Display. 3. Leverage NTB Metrics and Data-Driven Optimization: Actively leverage the New-to-Brand (NTB) metrics available within the Amazon Ads console to meticulously analyze your campaign performance. This will enable you to continuously refine your budget allocation, targeting, and keyword strategies, thereby maximizing the efficiency of your new customer acquisition efforts.

Important Notes 💡 Skai's AI diagnostic tools and certain features highlighted in this case study may only be accessible through Amazon Ads partners or might require a separate subscription. Amazon Marketing Cloud (AMC) is a service offered to specific advertisers, and its utilization necessitates active Amazon DSP campaigns.

Next Actions - Review the proportion of branded search term spend in your current ad campaigns and identify any unnecessary expenditures. - Beyond Sponsored Products, explore building a full-funnel strategy by leveraging diverse ad products such as Sponsored Brands, Sponsored Display, and Amazon DSP. - Regularly monitor the NTB metrics provided in the Amazon Ads console and optimize your campaigns to align with your new customer acquisition goals.

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