Infographic showing audience segmentation.

Amazon’s New Brand Tailored Promotions Gives Brands Greater Marketing Control

Ryan Faist

Ryan Faist, Channel Key

October 20, 2023

Brand Tailored Promotions is a new Amazon marketing lever that enables brands to offer promotional discounts to specific audience segments. Targeting promotions to select customers is designed to make it easier to boost conversions, repeat purchases, and customer retention rates. This article explores the specific audience targeting options available in Brand Tailored Promotions, budget recommendations for setting up campaigns, upcoming email marketing capabilities, and more.

Selecting Audiences for Brand Tailored Promotions

The most powerful part of Brand Tailored Promotions is the ability to control which customers receive discounts. Currently, brands can tailor promotions to nine audience segments:

  • Repeat Customers: Customers who have ordered your brand’s products more than once in the last 12 months. These are your most loyal customers. Consider offering discounts to reward loyalty, deepen relationships, and motivate repeat purchases.
  • Brand Cart Abandoners: Customers who have added any of your brand products to their cart in the last 90 days but didn’t complete a purchase. These are customers who were thinking about buying something from your brand and then changed their mind for some reason. Consider offering discounts to help sway them back to your product detail pages.
  • Potential New Customers: Customers who have clicked on your brand’s products or added them to their cart within the last 90 days but have not completed a purchase in the last 12 months. These are high-affinity customers who might just need a little nudge to make their first purchase. Consider offering acquisition discounts to help convert them.
  • High-Spend Customers: The highest-spending 5% of your brand’s customers in the last 12 months. These customers spend the most on your brand’s products.
  • Recent Customers: The most recent customers who have bought from your brand.
  • Brand Followers: Brand followers have clicked to “follow” this brand on Amazon. These customers have opted to hear about your brand story and products. They may or may not have bought from you previously. Consider offering follower discounts to encourage more customers to follow your brand.
  • Top-Tier Customers: These are customers who have bought recently and spend the most on your brand. Most of these customers buy often. These customers need to feel important to keep purchasing.
  • Promising Customers: Customers who have bought recently, buy occasionally, and spend above average.
  • At-Risk Customers: Customers who haven’t bought recently or frequently, with varied spend. At-risk customers can be engaged through discounts, promotions, and other incentives.

It’s important to note that audiences are not mutually exclusive. There could be an overlap between different audiences. If a customer is part of two different audiences and a brand creates a promotion for both, the customer might receive two different promotions. These promotions will not be applied to the same purchase because tailored promotion discounts will not stack. However, the customer can use a tailored promotion for two separate purchases if eligible for two audience-based promotions.

How to Create Brand Tailored Promotions

To create your first Brand Tailored Promotion, login to Seller Central and follow these simple steps:

  • Go to Advertising and click Brand Tailored Promotions.
  • Click Create a promotion on Brand Tailored Promotion.
  • Select the brand and the audience you want to target. Each audience shows the name, description, and size of the audience. Click Next.
  • Add a promotion name (not visible to customers), discount %, budget, and promotion start and end dates. A percent discount must be between 10% and 50%. Budget is the maximum spend for discount that will be used for this promotion. The start date must be at least 24 hours in the future.
  • Currently, Brand Tailored Promotions will apply to the entire brand catalog for redemption on any one product per customer. Amazon stated it will soon launch the ability to select specific ASINs eligible for a Brand Tailored Promotions.
  • Review the promotion and click Submit.
  • Once your promotion is approved, it will be visible to the selected audience.

Budget Recommendations for Brand Tailored Promotions

When creating a Brand Tailored Promotion, it’s important to select a budget that covers the cost of the customer demand that your promotion generates for the duration you set. The minimum budget you can set must be (Average order value for your brand X percent discount X number of customers in selected audience X redemption percentage). For example, 30 X 10% X 100,000 X 5% = $15,000

Budget overspending is most likely to occur during high-traffic events or when your promotion is combined with other promotions, such as Lightning Deals or when you set unrealistically low budgets for higher discounts.

Avoid creating unrealistically low budgets. Low budgets for high discounts might cause your budget to expire rapidly after only a couple of hours. As a result, only a few customers will be able to see and interact with your promotion.

Using Email Marketing to Promote Brand Tailored Promotions

At Amazon Accelerate 2023, Amazon announced that brands will soon be able to use the Manage Your Customer Engagement (MYCE) tool to promote Brand Tailored Promotions. MYCE enables eligible brands to create and schedule image-based, product-centered Amazon customer emails. MYCE offers the following primary benefits:

  • Build Relationships
    Send promotional content to re-engage customers based on past purchases. Review historical purchasing data to see what customers bought so you can craft messaging that will resonate and help customers find products they’ll love.
  • Drive Engagement
    It can be disheartening to launch new products and schedule promotions that receive no conversions. Avoid disappointment by engaging past customers who have already bought from your brand within the past 12 months.
  • Inspire Repeat Purchases
    If a customer purchased from your brand before, what are the odds they’ll do it again? Stay proactive with repeat and high-spend customers through products and deals matching their interests.

Channel Key Takeaway

Brand Tailored Promotions are more than just a way to offer discounts on products to shoppers. They make it easier to create unique, individualized experiences that cater to a customer’s specific needs. For example, a promotion that resonates with a new customer might not work the same for a long-time, repeat customer. Brand Tailored Promotions help you get to know your audience better and give you greater control over how you interact with them. While still in their early stage, Brand Tailored Promotions have already generated strong results for our brand partners. With the ability to combine them with email marketing coming soon, Channel Key predicts Brand Tailored Promotions will be an important marketing lever for all brands that sell on Amazon.

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