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Improvement in NTB sales while reducing CAC
The Doctor is In! Driving New to Brand Sales and Profitability for Doctor's Best
In the highly competitive nutritional supplements category on Amazon, Doctor's Best faced a significant strategic challenge: driving meaningful new customer acquisition while maintaining profitable costs per click (CPCs).
Amidst intense competition for placements, their existing non-branded campaigns struggled to attract sufficient new-to-brand (NTB) volume, impacting efficient growth, a critical need in today's dynamic market landscape.
Doctor's Best required a sophisticated strategy to efficiently reach and convert high-value shoppers unfamiliar with their brand, ensuring marketing investments delivered clear ROI.
Challenges
1
Low NTB customer volume relative to ad spend
2
Inflated CPCs driven by intense category competition
3
Difficulty achieving differentiation in crowded search results
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Solutions
Nectar deployed a sophisticated strategy, leveraging the advanced capabilities of Amazon Marketing Cloud (AMC) within our data analytics platform, iDerive to build and activate high-value custom audience segments:
- Advanced Audience Segmentation:
- Precisely identify shoppers who hadn't purchased from Doctor's Best in the past 365 days.
- Applied minimum price threshold filters, aligning targeting with the brand's ideal customer value profile.
- Excluded lower-value shopper segments to enhance budget efficiency and focus on profitable acquisition.
- Profit-Aware Bid Management:
- Strategically reduced baseline bids by 50% across tested campaigns to establish a cost-efficient foundation.
- Applied significant 80% bid increases exclusively for the high-value, well-defined NTB audiences, concentrating investment where it drives the most profitable growth.
- Prioritized spend towards high-intent searches for top category terms made by these qualified NTB prospects.
- Targeted Campaign Optimization:
- Concentrated efforts on non-branded Sponsored Products and Sponsored Brands campaigns where NTB acquisition was key.
- Implemented dynamic bid adjustments informed by customer purchase history analysis.
- Ensured algorithmic priority was given to reaching high-value NTB prospects over existing customers within these campaigns.
Building Sustainable Competitive Advantage
This targeted initiative proved that leveraging advanced analytics within a decisive strategy can cut through category saturation.
Results
Primary Outcomes:
- +17% lift in NTB customers acquired through non-branded campaigns.
- Decreased total CPCs across the test period, improving cost efficiency.
- More strategic and efficient budget allocation towards high-potential NTB audiences, enhancing the profitability of acquisition efforts.
Secondary Benefits:
- Improved overall customer acquisition cost (CAC) efficiency.
- Enhanced targeting precision, minimizing spend on potentially lower-value or already-acquired customers.
- Established a foundation for a scalable and profit-driven NTB acquisition strategy.
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