Report: How to Drive Success at Amazon with 4 Factors
Brand marketers can make the path to success on their Amazon accounts smoother with some key internal changes, according to Bobsled Marketing and Stratably.
This month, digital marketing agency Bobsled released a report outlining how to win at the retail giant. The report is derived from a project developed in collaboration with research company Stratably. It is based on the results of a survey Bobsled did with 108 consumer brands on a handful of factors, including executive buy-in, KPIs measured, supply chain prioritization, and willingness to test and learn.
When combined, these factors create a black belt-style skill level for consumer brands that outperforms peers lacking one or more of the elements by 16%, according to the research.
One key factor is matching purpose to KPIs. As it relates to Amazon, CPG brands are divided on the role it plays in their portfolio. Should it grow market share or grow profitability?
Revenue growth ranked first for both market share-oriented companies and profit-oriented companies. This was followed by return on ad spend (ROAS) or advertising cost of sale (ACoS) ranking second for the two types of companies.
Channel profitability ranked third at 37% for market share-oriented companies, compared to 62% for profit-oriented companies.
In the report, Bobsled provides a KPI ranking order for both market share-focused companies and profit-led companies. The agency also explored:
- The big mistakes most brands are making when setting their goals.
- How ongoing testing can drive growth on Amazon.
- Why brands might need to prioritize Amazon from a supply chain perspective.