Craft Customer-Centric Promotions Like a Pro Without Deep Marketing Budgets

Amazon has rolled out an exciting new feature for brands called Amazon Brand Tailored Promotions. This innovative capability allows brands to advertise their products and offer targeted discounts from 10% to 50% and deals to specific segments of their customers for the first time on Amazon.

Until now, the only way for sellers to offer promotions was through universal coupons, promotions, and lightning deals open to all or Prime shoppers. But Brand Tailored Promotions enable granular personalization at scale. With this feature, brands can engage recent purchasers to drive repeat sales, draw in high-value customers with exclusive offers, tempt cart abandoners, and more. The potential for incremental revenue through tailored promotions is immense. Now the question is: Are you ready to take advantage of it? 

This comprehensive guide includes all of the tools and resources you need to maximize the impact of Brand Tailored Promotions for your brand on Amazon. You’ll learn:

  • How tailored promotions allow you to engage different shopper segments
  • The audiences eligible for targeted offers and where shoppers see them
  • Steps to set up tailored promotions in Seller Central
  • Creative strategies to increase promotional performance
  • How tailored promotions fit into your overall marketing approach
  • Pros, cons, and best practices to optimize your implementation

With this information, you’ll be equipped to fully capitalize on the potential of Amazon’s latest game-changing feature for brands. Let’s dive in and explore how tailored promotions can become an invaluable new sales driver for your business on Amazon.

What are Amazon Brand Tailored Promotions?

Brand Tailored Promotions give sellers the unique capability to offer customized discounts and deals targeted to specific groups of shoppers and  customers on Amazon for the first time. This builds on Amazon’s existing options of limited-time Lightning Deals and universal coupons available to all shoppers. With tailored promotions, you can personalize offers to segments like:

  • Recent purchasers
  • Repeat customers
  • High-spend customers
  • Cart abandoners
  • Brand followers
  • Potential new customers

This granular targeting makes tailored promotions a more strategic sales tool compared to blunt discounts open to everyone. You can use tailored offers to incentivize your most valuable customers, re-engage at-risk shoppers, or acquire new consumers.

Tailored promotions allow 10-50% discounts to be applied at checkout after eligible customers click the promotion. Customers can only use the promotion once per product. Brands can target promotions across their entire catalog or specific ASINs. 

Amazon Brand Tailored Promotions

Key highlights of Amazon Brand Tailored Promotions:

  • No Fee: There is no fee to set up an Amazon Brand Tailored promotion. This feature is designed to empower sellers without imposing any upfront charges.
  • Acquire new customers: Offer discounts to draw in potential new customers who have engaged with but not yet purchased from your brand.
  • Increase repeat purchases: Provide deals to existing customers to incentivize additional orders.
  • Win back lapsed buyers: Bring previous customers back with special offers if they haven’t purchased in a while.
  • Boost brand loyalty: Followers who get access to exclusive deals are more likely to stick with your brand long-term.
  • Gain incremental sales: Tailored promotions can generate net new sales you may not get otherwise.

Overall, this capability provides enhanced personalization and segmentation to help brands boost engagement, loyalty, and incremental sales on Amazon.

How Amazon Brand Tailored Promotions Work

Amazon Brand Tailored Promotions give sellers added flexibility to engage different shopper groups. But how do they actually work? Here’s an overview of the backend logic powering this new capability:

Promotion Creation

Brands create tailored promotions through Amazon Seller Central by selecting the audience segment, discount percentage, start and end dates, and ASIN eligibility. Amazon provides the template to configure all parameters. Brands can schedule promotions ahead of time or set them to go live immediately upon approval.

Audience Targeting

Amazon leverages its data and algorithms to determine audience eligibility. The brand selects the segment, while Amazon identifies the users who qualify based on past behaviors like purchases, browsing history, following status, and more.

Promotion Display

Eligible customers (audiences) will be able to view the promotion on search, detail page, and promotion shopping page surfaced by a green badge that says ‘Follower promo’ or ‘Exclusive promo’ based on the audience selected. Users can view and redeem only the offers for which they qualify. To the customer, it appears as an exclusive discounted price only available to them. The deal is applied at checkout after clicking through.

Metrics and Management

In Seller Central, brands can monitor performance data like impressions, clicks, and redemptions for each promotion. Metrics help assess audience response and fine-tune targeting. Brands can edit, pause, or remove tailored promotions as needed. Ongoing optimization based on data is key for maximizing impact.

This quick rundown shows how tailored promotions enable granular personalization using Amazon’s shopper data. Next, let’s explore the specific audience segments available.

Eligible Audiences for Tailored Promotions

The real value of tailored promotions lies in engaging different shopper groups. Amazon enables brands to target six distinct audience segments. Let’s analyze how each one enables you to connect with customers:

1. Brand Followers

These shoppers have already shown interest in your brand by following you. Offering exclusive deals for your followers can help drive repeat purchases and increase loyalty. Discounts also incentivize more customers to follow your brand.

2. Repeat Customers

Customers who have bought from you multiple times in the past year have higher lifetime value. Special promotions boost repeat purchases and allow you to express appreciation.

3. Recent Customers

Targeting the most recent 5% of buyers who have bought from your brand in the past three months helps nurture newer relationships. Deals can encourage customers to buy again now that they’ve had a positive first purchase experience. 

4. High-Spend Customers

These VIP shoppers account for a disproportionate share of sales. Rewarding your highest-spending customers helps maintain their lifetime loyalty. Exclusive offers make them feel valued.

5. Potential New Customers

Customers who have clicked on the brand’s products or added to the cart recently (90 days) but have not bought in the last 12 months. These high-affinity customers are most likely to make their first purchase from a brand with a nudge. Offer acquisition discounts to convert them to make their first purchase.

6. Cart Abandoners:

Customers who added your product to their cart in the last 90 days but didn’t complete the purchase require an extra push. A personalized promotion is the perfect way to regain their interest. 

As you can see, each audience segment represents an opportunity to drive incremental sales and strengthen engagement. 

Audience size:  

Audience size is the number of customers that match the audience criteria. They are the potential recipients of tailored discounts. Audience size may change from when you create the promotion to when your promotion is live because more customers may match the audience criteria, or some customers may fall out of the audience criteria between promotion creation and the go-live date. You will be eligible to create tailored promotions only for audiences size of 100 or more.

 Combined creatively, tailored promotions provide a level of personalization never before possible on Amazon.

Where Customers See Amazon Brand Tailored Promotions

Visibility is required for any promotion to drive sales. Amazon displays tailored promotions in multiple places to maximize impressions:

Search Results Pages

Targeted deals can appear in search results for relevant keywords based on the shopper’s audience eligibility. This puts your discounted offer right where customers are searching for products like yours.

Product Listings

Tailored promotions are shown on your product detail page banners for qualified shoppers. This positions the offer exactly where the customer is evaluating purchasing your item.

Shopping Cart

If the customer has added your product to their cart, the tailored promotion may appear on the cart page as a final opportunity to complete the purchase.

Amazon Store Page

For followers of your Amazon store, tailored promotions are displayed on your store banner and feed. Followers already like your brand and engage more with your content.

Email

Amazon may highlight tailored promotions in email campaigns sent to eligible audience segments. This extends the reach of your offers.

Tailored promotions are strategically surfaced on high-intent pages across Amazon’s platform. Combined with granular targeting, this visibility enables brands to influence customers at multiple touchpoints when they are nearest to converting.

How to Implement Amazon Brand Tailored Promotions

Now that you understand the capabilities of tailored promotions let’s walk through how to Create and Edit or Deactivate Amazon Brand Tailored Promotions step-by-step:

Amazon Tailored Promotions

Creating a Tailored promotion

Step 1: Accessing Brand Tailored Promotions

  • Navigate to the ‘Advertising’ section on your Amazon Seller account.
  • Click on ‘Brand Tailored Promotions’ to access the feature’s homepage.

Step 2: Initiating a New Promotion

  • On the Brand Tailored Promotions homepage, locate and click the ‘Create a Promotion’ option.
  • This action will launch the promotion creation process.

Step 3: Selecting Brand and Audience

  • Choose the specific brand for which you intend to create the promotion.
  • Now, select the audience you wish to target with your promotion. Each audience shows the audience name, description, and size of the audience. Click Next & proceed.

Step 4: Setting Promotion Details

  • Provide a unique Promotion Name (this won’t be visible to customers).
  • Specify the desired discount percentage for the promotion. Note that this percentage must fall within the range of 10% to 50%.
  • Set a budget for the promotion. This budget represents the maximum amount you’re willing to spend on discounts throughout the promotion.
  • Now select the start & end dates for the promotion. It’s essential to ensure that the start date is at least 24 hours into the future.

Step 5: Applying the Promotion

  • As of now, all tailored promotions apply to your entire brand catalog, offering redemption for any single product per customer.
  • Keep in mind that Amazon is working on a feature that will enable you to select specific ASINs (Amazon Standard Identification Numbers) eligible for tailored promotions.

Step 6: Default Display Settings

  • By default, all tailored promotions are set to be displayed on product detail pages. This optimizes the visibility of your promotion where potential customers engage most.

Step 7: Review and Submission

  • Take a moment to review all the details of your promotion for accuracy and completeness.
  • Once satisfied, click ‘Submit’ to initiate the promotion review process.

Step 8: Approval and Visibility

  • After submission, your promotion will go through an approval process.
  • Once approved, your tailored promotion will become visible to your selected audience.

By following these steps, you can easily and effectively leverage Amazon’s Brand Tailored Promotions to elevate your brand’s presence, engage specific audiences, and drive conversion. 

Edit/Deactivate a Tailored promotion

You can edit or cancel a promotion before or during the promotional period.

Editing a Promotion

  1. From the Brand Tailored Promotion homepage, locate the promotion you wish to edit.
  2. Click the ‘Edit’ option next to the promotion you want to modify.
  3. This action will grant you access to the promotion’s fields, allowing you to make necessary changes.
  4. After making the desired changes, click ‘Submit’ to save your edits.

Note: You can edit specific promotion fields before it goes live or during its active phase. However, keep in mind the following constraints:

  • Before Promotion Goes Live (Up to six hours prior):
  • Discount Percentage (%)
  • Budget
  • Start and End Dates
  • After Promotion Goes Live (Within six hours of activation or while live):
  • Budget (can only be increased)
  • End Date of the promotion (can only be extended)

Deactivating a Promotion

You can end/deactivate an active promotion before its scheduled end date or prior to reaching your budget limit.

  1. Access the Brand Tailored Promotion homepage.
  2. Locate the active promotion you wish to deactivate and click the ‘Deactivate’ option.
  3. After deactivation, please note that the promotion might take up to four hours to cease being visible to customers.

With these straightforward steps, you can adjust your tailored promotions as needed, ensuring your marketing efforts remain agile and aligned with your goals. Whether you’re fine-tuning your promotion parameters or ending a campaign prematurely, Amazon’s user-friendly interface puts the control in your hands.

Benefits of Using Amazon Brand Tailored Promotions

Leveraging Amazon’s new tailored promotions can offer several valuable benefits for brands:

Drive New Customer Acquisition

Tailored promotions allow you to provide discounts specifically to potential new customers who have engaged with you but have not yet purchased your products. This gives you a highly targeted tool to incentivize first-time purchases.

Increase Repeat Purchases

Offering exclusive deals to existing repeat customers is a great way to drive more frequent repurchases and increase customer lifetime value.

Win Back Lapsed Buyers

Targeting tailored promotions to previous buyers who haven’t made a purchase in a certain period gives you the opportunity to re-engage them.

Boost Brand Loyalty

Giving your brand followers access to special discounts that general customers don’t get helps build a sense of exclusivity and appreciation that strengthens loyalty.

Gain Incremental Sales

Well-targeted tailored promotions generate net new sales from various customer groups that you likely wouldn’t capture otherwise.

Enhanced Customer Insights

The performance tracking and segmentation capabilities provide valuable customer insights that can inform wider marketing strategies.

Cost-Effective Promotions

Tailored promotions provide a cost-efficient way to create targeted campaigns since Amazon currently does not charge additional fees.

By tapping into these benefits, brands can drive greater sales, loyalty, retention, and insights through Amazon tailored promotions as part of their customer marketing strategies.

Best Practices for Amazon Brand Tailored Promotions

Follow these tips to increase the impact of your tailored promotions:

Use Alongside the Amazon Manage Your Customer Engagement (MYCE) Tool [Amazon Deprecated in early 2024]

The Amazon MYCE Tool allows you to email strategic segments of your customers directly from Seller Central. Running a MYCE campaign alongside a Brand Tailored Promotion should produce multiplicative, if not incremental, shopper participation in your promotion. 

Add Additional Focus Through Amazon Advertising Campaigns

Whether you are leading into a tentpole event, or attempting to sell through inventory, for items promoted through Amazon Brand Tailored Promotions you may want to consider adding additional budget and raising bids accordingly – in Sponsored Products, Sponsored Brands and Sponsored Display. Bonus: Some ad placements highlight your promotion within the creative seen by shoppers. 

Choose Strategic Audiences

Assess your customer data to identify which segments represent the biggest opportunities. Prioritize groups with the potential for repeat purchases or high lifetime value.

Test Different Discounts

Experiment with discount levels between 10-50% to find the optimal balance of driving sales without eroding margins. Start low, around 10-20%, then increase if needed.

Schedule Carefully

Avoid running tailored promotions during peak sales periods when demand is high. Use them to boost sales during slower periods.

Limit Promotion Duration

Shorter promotions of 1-7 days tend to drive urgency. Start with 24-48 hours for cart abandoners and potential new customers.

Promote Your Promotions

Email, social posts, influencers, and ads let targeted customers know about exclusive deals. Don’t rely solely on organic discovery.

Track Performance

Monitor redemption rates and sales for each audience segment. Optimize targeting and discounts based on results.

Follow Up After Promotions

Send thank you emails, product recommendations, or special content to customers post-promotion. Identify your best shoppers for future incentives.

Benefits of Integrating Amazon Brand Tailored Promotions with Amazon Marketing Mix/Strategy 

Amazon Brand Tailored Promotion is a strategic instrument that can profoundly enhance your Amazon marketing strategy across the 7Ps of marketing: Product, Price, Place, Promotion, People, Process, and Physical Evidence.

Product Enhancement

Amazon Brand Tailored Promotions empower you to refine your products’ appeal. By aligning your promotions with the preferences of specific customer segments, you enhance the connection between your products and your audience. This personalization heightens the perceived value of your products, fostering trust and encouraging conversions. Your tailored promotions accentuate the uniqueness of your products, amplifying their allure.

Price Optimization

Crafting discounts within the 10% to 50% range, Amazon Brand Tailored Promotions provide a tactical approach to pricing. Tailored discounts can create a sense of urgency and stimulate purchases. Strategic pricing optimization ensures that your products remain competitive without compromising your profit margins. This precision in pricing contributes to the overall value proposition you offer.

Placement Amplification

Strategic placement is a hallmark of Amazon Brand Tailored Promotions. Your promotions gain visibility on product detail pages and search results, precisely where purchase decisions are made. This enhanced visibility amplifies your brand’s presence, expanding its reach and impact. Well-placed promotions seamlessly integrate with the customer’s shopping journey, reinforcing their decision-making process.

Promotion Innovation

Amazon Brand Tailored Promotions redefine how promotions are executed. The tool empowers you to craft campaigns that resonate with specific audiences, fostering a sense of exclusivity and relevance. This innovative approach ensures that your promotions align with your brand’s messaging and marketing objectives. The flexibility to adapt promotions in real-time empowers you to refine your strategy based on immediate insights.

Audience Engagement

Tailored Promotions extend beyond products; they’re about people. By crafting promotions for specific audience segments, you’re engaging customers with relevance. This engagement builds trust and loyalty, establishing a strong human connection between your brand and your customers.

Process Efficiency

The structured process of creating and adjusting tailored promotions streamlines your marketing efforts. The step-by-step approach allows for meticulous campaign planning, execution, and optimization. This systematic process ensures that your promotions are aligned with your overall marketing strategy.

Physical Evidence Impact

Amazon Brand Tailored Promotions leave a tangible impact on your customers as they encounter discounts and offers, bolstering credibility. The visibility of tailored promotions on product pages and search results serves as physical evidence of your commitment to customer satisfaction. This evidence reinforces your brand’s credibility and encourages customer confidence in their purchase decisions.

By incorporating tailored promotions into the promotional “P” of their marketing mix, sellers can leverage Amazon’s unmatched customer insights and promotional capabilities to boost brand awareness, consideration, and, ultimately, sales in a highly targeted manner.

Conclusion

Amazon’s Brand Tailored Promotions provide actionable customer insights, more personalized engagement and incremental sales growth. Integrate promotions with Amazon’s Marketing Mix/Strategy to maximize the impact. When used strategically, tailored promotions can become an invaluable profit driver by accelerating acquisition, retention, and brand loyalty.

Amazon’s new Brand Tailored Promotions enable you to cater discounts directly to your highest potential and most loyal customer groups. This opens up significant opportunities to increase sales, retention, and engagement across targeted segments.

Follow the best practices outlined above to strategically implement tailored promotions for your brand. With the right approach, you can generate substantial incremental revenue and fully reap the benefits of this powerful new capability. Amazon Tailored Promotions marks a significant stride in the realm of e-commerce marketing. By tailoring your promotions to the right audience, you not only enhance customer engagement but also elevate your brand’s visibility and revenue potential. Embrace this innovative tool with a strategic mindset, and propel your brand towards sustained success in the dynamic Amazon marketplace.

In a world of relentless innovation, Amazon Tailored Promotions is a testament to the company’s commitment to empowering sellers. As you embark on this promotional journey, remember to stay attuned to Amazon’s updates. By being proactive and informed, you position yourself at the forefront of industry trends, ensuring your brand remains agile and adaptable in the face of change.

Need help setting up Amazon Brand Tailored Solutions? Click “See if You Qualify” to set up a time with one of our Amazon Experts.

Resources

Amazon Brand Tailored Promotions (Public)

Amazon Brand Tailored Promotions (Seller Central Login Required)

Brand Tailored Promotions Dashboard (Seller Central Login Required)

FAQ: Amazon Brand Tailored Promotions

  • What is the cost structure of Amazon Tailored Promotions?
    Amazon currently does not charge any additional fees for brands to use tailored promotions beyond the discounts offered to customers. However, the discounts do impact profit margins on promoted sales. Brands should factor the incremental sales and customer acquisition against margin impacts.
  • Can I combine Tailored Promotions with other marketing tools?
    Tailored promotions may stack with existing Amazon-wide coupons or Deals of the Day at Amazon's discretion. Externally, they can amplify the impact of promotions run through other channels like email, social, search ads, or influencers. Brands should coordinate messaging across channels to promote tailored deals.
  • How often should I run tailored campaigns?
    Limit tailored promotions to 1-2 quarterly campaigns for each audience segment to avoid oversaturation. Run them strategically around major retail events, seasonal surges, or slow sales periods. Promote new product launches or re-engage lapsed buyers. The optimal frequency depends on your product category, purchase cycles, and business goals.
  • Can I adjust my promotion after the launch?
    You can edit the discount percentage or end date of live-tailored promotions. However, the targeted audience segment(s) cannot be adjusted. Plan to target carefully and modify other elements to optimize performance. Edits can be made to the discount up to six hours before the promotion goes live and for six hours after the promotion goes live. If the promotion is already live for more than six hours, you may need to deactivate or cancel it to make changes.
  • Is there a limit to how many audiences I can target simultaneously, and is there an overlap between different audiences?
    Currently, there are no limits on combining multiple audience segments within one tailored promotion campaign. However, restraint is advised to avoid margin erosion. Assess your goals, inventory, and budgets when determining optimal audience targeting. And yes, audiences can overlap. If a buyer is part of multiple audiences for which a promotion is created, they might receive distinct promotions. However, two promotions cannot be applied to the same purchase.
  • How do I establish efficient budgets for a tailored promotion?
    To set up an efficient budget, calculate the cost of customer demand generated by your promotion. For instance, if your tailored promotion targets an audience of 100,000 repeat customers with a 10% discount and your brand's average order value is $30, the minimum budget calculation would be: $30 * 10% * 100,000 * 5% = $15,000. Avoid setting unrealistically low budgets for substantial discounts to prevent budget overspending during high-traffic events.
  • How does the promotion appear to customers?
    Eligible customers can see the promotion displayed on search results, product detail pages, and the promotion shopping page. A green badge indicating 'Follower promo' or 'Exclusive promo' (based on the selected audience) accompanies the promotion, signaling its exclusivity.
  • My account lacks the necessary permissions for brand tailored promotions. How can I gain access?
    If you encounter a permissions error, the primary user can grant you access by navigating to "Settings > User Permissions > Global User Permissions > (locate relevant user) > Manage Rights > Brand Benefits > Brand Tailored Promotions." This feature is still in BETA, so not all Amazon Seller accounts have access to it. 
  • Why am I unable to see the Tailored promotion on the product detail page even after submission?
    If the tailored promotion isn't visible on the detail page:
    • You might not be part of the selected audience.
    • Other coupons or discounts may have a higher promotion value on the ASIN.
    • Your product might not be featured as the primary offer.
      
  • How can I check the status of my Tailored promotion?
    The status of your promotion can be checked from the Brand Tailored Promotion homepage on Seller Central. It will be categorized as Running, Complete, Scheduled, Canceled by Brand, Pending Activation, or Failed.
  • Will the Tailored promotion stack over regular deal prices in Deal and Coupons?
    Tailored promotions can be combined with unrestricted promotions, deals, and coupons. However, tailored promotions will be set as 'Preferential,' meaning that the most beneficial promotion will apply. Tailored promotions can be combined with promotions without claim codes and all 'Unrestricted' promotions.
  • Will the discount apply to all sellers for my brand?
    No, the promotion applies only to the selected brand's products within the catalog of the brand owner's selling partner. It won't apply to other sellers of the same brand's products.
  • If multiple promotion codes are set, which one will customers see first on the search and detail page?
    Customers will see and receive the highest value promotion for a given ASIN, including tailored promotions and other coupons/discounts.

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