Amazon: Subscribe and Grow

$

76.6

K

X

%

Increase in Subscribe And Save Sales

Waterdrop, a well-known European brand, struggled to gain traction in the highly competitive US market. With a higher price point and facing well-established competitors like Liquid IV, Waterdrop needed a robust strategy to increase its market share and brand recognition in the US. The primary challenges included market penetration, high competition, and low brand awareness, all resulting in a high customer acquisition cost (CAC).

Challenges

1

Market Penetration

2

High Competition

3

Brand Awareness

4

High Customer Acquisition Cost

Solutions

Nectar took over Waterdrop's advertising efforts in August 2023, employing a multi-faceted approach using Amazon's full suite of advertising tools:

Full-Funnel Approach for Increasing Brand Awareness and Driving Subscriptions:

Utilizing DSP, Sponsored Products, Sponsored Brands, and Sponsored Display ads to create tailored advertising solutions that enhanced brand visibility and drove subscription growth.

This required deep competitive research and keyword analysis to create brand visibility at every phase of consideration.

Brand Store Redesign:

Optimized the brand store for user experience by improving navigation, highlighting key products, and using optimal product grouping to enhance the shopping journey and increase conversion rates.

Subscribe and Save and Price Point Optimization:

Pack Size Strategy:
By experimenting with different pack sizes, Nectar introduced 24-packs in January 2024, which resulted in an 18% improvement in conversion rates over four months compared to the 48-pack. As more 24-packs were introduced, they made up 86% of sales within four months.‍
Subscribe and Save Discounts:
Implementing a 10% discount for Subscribe and Save (S&S) subscribers led to a 17% month-over-month increase in S&S subscriptions, with shipped revenue from S&S averaging a 14% month-over-month increase.‍
Incremental Growth Opportunities:
Continuously monitoring and optimizing campaigns to ensure profitable growth by focusing on Customer Acquisition Cost (CAC) and maximizing Customer Lifetime Value (CLV). As the subscribe and save push took off, there was a trailing organic growth that continued. Interestingly the other, larger packs began seeing sales growth as well.

Results

Sales Growth:

Average Daily Sales: Increased by 13.6% post brand store redesign.‍
Organic Traffic Sales: Increased by 17.76%

Buyer Behavior:

Market Basket Size: Increased by 14.24%
Sales to Visitor Ratio: Improved by 5.62%
Units per Order: Experienced a 1.72%
The optimized two-pack strategy resulted in a 18% higher CVR.
Customer Lifetime Value (CLV) increased by 36% in under six months.
Customer Acquisition Cost (CAC) was reduced by approximately 34%.

Subscribe and Save Success:

Monthly Subscribe and Save (S&S) sales grew by 76.9%, nearly doubling S&S subscriptions in under 5 months.

Before

After

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