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The Top 9 Strategies to Raise Amazon Customer Lifetime Value

Although you exceeded your target ACoS and your month-over-month sales are increasing, you are having trouble increasing your earnings. Do...

Amazon Customer Lifetime Value

Although you exceeded your target ACoS and your month-over-month sales are increasing, you are having trouble increasing your earnings. Does that sound familiar? Continue reading to learn how to use Customer Lifetime Value on Amazon to boost your revenue.


This post explains the significance of customer lifetime value for your Amazon business and offers tips on how to improve customer retention.


Table of Content

Customer Lifetime Value: What Is It?

Why Is CLV Required on Amazon?

The Top 9 Strategies for Raising Customer Lifetime Value

Methods for Determining Customer Lifetime Value

Final Thoughts


Customer Lifetime Value: What Is It?

Customer Lifetime Value (CLV), sometimes referred to as lifetime value (LTV), is the total amount of money that a customer is anticipated to bring in throughout the course of the business partnership.


Expanding your clientele and keeping them around is essential if you want to optimize your earnings and build a sustainable firm. There are two main approaches we usually attempt to boost profitability:


·       Get new customers

·       Keep your current clientele


Retaining customers is a less expensive approach to increase revenue. Over time, the business becomes lucrative by keeping clients and growing their lifetime value. A brand needs to understand CLV in order to recognize obstacles and opportunities.


It's difficult to calculate CLV across all of your sales channels. Calculating your CLV on Amazon might be challenging because they withhold a lot of client data. You can still take a few steps to raise your lifetime value on

 Recommended Guide: The Influence of Branding on Amazon

Why Is CLV Required on Amazon?

Every Amazon business owner should take into account CLV as a business growth metric. Gaining knowledge of this statistic will enable you to identify the interests of your customers. You may improve your current products and customer touchpoints by finding out about your customers' interests and what products they are interested in. You'll eventually be able to figure out how best to maximize your off-Amazon and on-Amazon retargeting and advertising campaigns. Thus, you should absolutely aim for a high CLV in your Amazon business.


Full-cycle advertising

Knowing CLV enables you to develop a full-funnel strategy and keep your attention on your customer. This also helps you to leverage other data insights and Amazon ad reports more effectively. Additionally, you might divide up your clientele according to your overall earnings. This assists you in developing customized marketing plans and advertising campaigns for your intended audience.


The Top 9 Strategies for Raising Customer Lifetime Value

Let's now examine how to raise your Amazon customer lifetime value.


1. Knowing the customer

The key to calculating Customer Lifetime Value is comprehending "buying patterns." In order to determine the probability of a recurring purchase, data must be analyzed. Gather pertinent data gathered over an extended period of time to obtain precise forecasts. This helps you optimize your CLV and target adverts.


2. Bundles of Products

You can stand out from the competition as the sole seller with a separate listing by grouping complementary products together. Thus, there will be no rivalry for the purchase box.


For the convenience that comes with the packaged items, customers will pay extra. Selling Amazon product bundles can yield higher profits than selling individual products if they are arranged correctly. This is so that you don't have to worry about competition while setting your own price.


How do you select the appropriate goods to bundle? To locate things that sell well with your current products, use the "frequently bought together" area. You can design bundles that help your customers save money and clicks by utilizing these information. Your average order value (AOV) and CLV rise as a result.


3. Subscribe and Save

Amazon has a very well-liked subscription program. They might charge 5%–15% for the privilege, but that saves them money on the expenses of finding new clients for later purchases.


By locking a consumer into a long-term contract, the Subscribe and Save option helps you increase the number of repeat purchases. You may also be able to save money on related expenses. Let's observe its operation.


·       When consumers choose to Subscribe and Save, they are less likely to go to a different brand.


·       Additionally, it indicates that the buyer is less inclined to purchase from another merchant if you are a reseller.


·       Enhancing recurring purchases will raise average sales price and, consequently, increase lifetime value.



4. Product Inserts

Inserts in packaging have the power to deliver outstanding consumer experiences.


Reminding customers to post reviews is an excellent method to use product inserts. To let them know that you offer a range of goods, you may also make your product inserts better. You could persuade them to look around your Amazon store.


Using inserts on your website to entice users to make additional purchases is against Amazon's Terms of Service (TOS). Make sure your messaging adheres to Amazon's TOS.


5. Measuring product-specific CLV efficiently

Measuring anything is necessary if you want to make improvements. You can’t know if your efforts are going in the right way if you aren’t taking proper measurements. It further restricts the tactics you can use.


Gaining proficiency in product-level insights is essential for precise CLV calculation. Go beyond approximations and examine data at the product level. There are situations where the advertising information you receive from Amazon might not be enough to tell you how well your products are doing.


6. Give high-CLV items priority in your targeted advertising

You have an overview of the valued products over time now that you are aware of the product-specific CLV. These goods:


·       Are the goods bringing in repeat business?

·       Give your consumers the option to buy more long-term or short-term products from your portfolio.


These are your flagship products, so focus your advertising efforts on them to raise your CLV overall. Gaining more favorable ad placements for these goods will increase your organic traffic as well. Additionally, focusing on high CLV products can allow for aggressive bidding to gradually increase your CLV. Furthermore, it increases your brand's total profitability.


There are two main approaches to taking aim at these high-CLV products.


Target competitor keywords: Use Sponsored Products and Sponsored Brand advertisements to target your rivals' brands. This tactic is effective if your items have a competitive advantage over others in terms of cost, ratings, shipping, etc. 


Target high-value non-branded keywords: To raise your organic ranks, use Amazon advertisements to target high-value non-branded keywords.


7. Promote brand allegiance 

CLV is essentially a measure of brand loyalty. There are several ways to expand your brand on Thus, make the most of the chances at your disposal to raise your CLV.


A handful are listed here.


Amazon Retailers

You may communicate your value proposition to your customers through Sponsored Brand Ads and Amazon Stores. You can direct them to a custom landing page or your store landing page when they click on your brand advertisements. Even better, you can use Amazon advertisements to drive traffic to your Amazon Store. Targeting people with particular products that you wish to sell on Amazon is also made easier by this.


Retarget advertising

You can determine how long it will be until a customer makes another purchase by analyzing their behavior. so that you can use campaigns to retarget your current clientele. Targeting customers based on their browsing habits, previously viewed products, and purchases is made simple by Amazon's programmatic advertising. So, to raise your CLV, think about retargeting. 


8. Establish a website separate from Amazon

You should eventually take this into account: Amazon customers are Amazon's, not yours. Hence, gaining traction away from Amazon is beneficial. Social networking platforms like Facebook, Instagram, and others are a good place to start. Create your own website and begin guiding visitors through a funnel. Your branding will be enhanced by having your own customer data and interacting with them, which will raise your CLV.


9. Posts on Amazon

Using the newest tool on Amazon, Amazon Posts, is one of the surefire ways to boost CLV. Since it's still in beta, US retailers with registered brands on Amazon can use it.


Similar marketing techniques are used by Amazon Posts and the "influencer culture." Thus, for sellers, this is a crucial chance. Product-related material, brand narratives, and real-time lifestyle photos of your product may all be curated and posted using Amazon Posts. Take use of this feature as they are completely free, which is the finest part.


There are many advantages to using Amazon Posts.


·       It is possible to encourage product discovery.

·       Make more informed business and marketing decisions by utilizing performance insights.

·       Increase target consumer loyalty and brand awareness


Acquiring this vast array of data increases your comprehension of clients and merchandise. Thus, on Amazon, Customer Lifetime Value rises as a result.  


Methods for Determining Customer Lifetime Value

The customer's value multiplied by their typical lifespan is their lifetime value.


Here, Customer Value = Average Purchase Value * Average Number of Purchases


This information can be used to target product or category retention.


Businesses use the actual amount that consumers spend as a means of calculating customer lifetime value in terms of profit. This is accomplished by determining the typical product margin and modifying the overall order quantity. Consequently, it offers a lifetime value that is more realistic in respect to earnings.


Final Thoughts

It is imperative that you compute your customer lifetime value if you run an online store. Even if it looks like a lot of work, the effort will be worthwhile in the end. Finding chances to enhance your offering and company is made simpler once you have a better understanding of CLV.

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