From Transaction to Strategy: How Brands Leverage Amazon for Long-Term Value

Amazon is distinct from a brand’s direct-to-consumer (DTC) website. For instance, it does not support loyalty programs, comprehensive CRM data collections, or owner remarketing the same way. However, the distinction does not mean it cannot play a vital part in a long-term customer value strategy. Critically, its effectiveness depends on how it is utilised.

At Market Rocket, the platform is viewed as a primary acquisition channel. This is because consumer intent is typically high there, trust is already established, and the barriers to a first-time purchase are at their lowest. Therefore, it is essential that an approach be built with the full customer journey in mind for the strategy to succeed.

Here’s how we help brands align Amazon with LTV – not just revenue:

Amazon isn’t where you build a relationship. It’s where you start one.

1. Focus on SKUs That Attract New Customers

Positioning entry-level products or SKUs for daily use is the strategy. These are the items most likely to convert a new customer. Importantly, these products may not always generate the highest profit margins. But they are crucial for drawing attention to a brand. Subsequently, PDP messaging, a cross-sell strategy, and variation structuring are used to encourage customers to move towards higher-value products.

      2. Acknowledge the Difference in Retention

Amazon does not provide first-party customer data. Therefore, attempting to duplicate a DTC-style retention funnel is ineffective. Instead, the focus shifts to ensuring repeat visibility. This is achieved through retargeting, the Subscribe & Save feature, branded searches, and the strategic use of Brand Store pathways. The goal is not to maintain a customer within a CRM system. Rather, the objective is to ensure the brand remains prominent every time a customer returns to Amazon.

       3. Leverage Advertising for Brand Presence, Not Just ROAS

When brands treat Amazon solely as a performance channel, the emphasis often becomes short-term efficiency. However, a balanced approach incorporates long-term brand positioning. For high Lifetime Value (LTV) categories, it is often advisable to aggressively pursue shares of voice, branded search visibility, and upper-funnel awareness. This may involve accepting a higher Total Advertising Cost of Sales (TACoS) in the immediate term.

       4.  Monitor New-to-Brand (NTB) Metrics

New-to-brand metrics offer early insights into acquisition efficiency, provided they are interpreted with the right context. This data is combined with attribution, ‘halo’ data, and cross-SKU behaviour. By doing this, we build a comprehensive picture that shows which customers are discovering the brand and how frequently that discovery leads to a repeat purchase.

The development of a long-term customer relationship does not occur on Amazon. However, this is the initial point of connection.

Want to see your Amazon performance skyrocket?  Book a call with our team or email us at amazon@marketrocket.co.uk to take your brand to the next level.