Amazon Subscription Growth
Date
2022
Industry
Lifestyle
Services
Amazon
Team
Retail Marketing
Summary
A growing technology subscription business faced a significant challenge: the need to lower its Customer Acquisition Cost (CAC) while simultaneously increasing the volume of orders for its GPS tracking device. With rising competition and increasing advertising costs, the company sought an effective strategy to achieve these dual objectives.
Goal
To address this challenge, the business worked with Mason to leverage Amazon’s advertising platform. The strategy involved launching a diversified set of campaigns, including Sponsored Products, Sponsored Brands, and Sponsored Display ads.
Sponsored Products
These ads targeted high-intent shoppers actively searching for GPS tracking devices and related products. The focus was on optimizing keyword selection and bidding strategies to capture the most relevant audience.
Sponsored Brands
These campaigns helped to build brand awareness and drive traffic to the company’s Amazon Store. Custom landing pages and brand-focused creatives were utilized to enhance user engagement and conversion rates.
Sponsored Display
By retargeting previous visitors and engaging potential customers across Amazon’s ecosystem, these ads ensured the brand stayed top-of-mind, effectively driving repeat traffic and conversions.
50%
reduction in the cost of acquiring each new customer
30%
increase in the volume of orders
30%
increase in the LTV of subscribers
The Results
The implementation of diversified Amazon advertising campaigns yielded impressive results:
Lowered CAC by 50%:
The strategic targeting and optimization of ad spend led to a significant reduction in the cost of acquiring each new customer.
Increased Volume of Orders by 30% Year-over-Year:
The enhanced visibility and targeted advertising efforts translated into a substantial increase in the volume of orders for the GPS tracking device, driving growth and expanding market presence.
Increased Lifetime Value (LTV)
In addition to lowering CAC and increasing order volume, the diversified advertising strategy also had a positive impact on the Lifetime Value (LTV) of customers, particularly for subscription-based products:
Increased LTV by 30%:
By effectively promoting subscription-based products through Sponsored Brands and Sponsored Display campaigns, the company was able to enhance customer retention and loyalty. This resulted in a 30% increase in the LTV of subscribers, providing a more sustainable revenue stream and improving overall profitability.
