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The Doctor is In! Driving New to Brand Sales and Profitability for Doctor's Best

Advertising
Branding
Strategy
Data Analytics

$

17

K

X

%

Improvement in NTB sales while reducing CAC

In the highly competitive nutritional supplements category on Amazon, Doctor's Best faced a significant strategic challenge: driving meaningful new customer acquisition while maintaining profitable costs per click (CPCs). 

Amidst intense competition for placements, their existing non-branded campaigns struggled to attract sufficient new-to-brand (NTB) volume, impacting efficient growth, a critical need in today's dynamic market landscape.

Doctor's Best required a sophisticated strategy to efficiently reach and convert high-value shoppers unfamiliar with their brand, ensuring marketing investments delivered clear ROI.

CHALLENGES

1

Low NTB customer volume relative to ad spend

2

Inflated CPCs driven by intense category competition

3

Difficulty achieving differentiation in crowded search results

4

Solutions

Nectar deployed a sophisticated strategy, leveraging the advanced capabilities of Amazon Marketing Cloud (AMC) within our data analytics platform, iDerive to build and activate high-value custom audience segments:

  1. Advanced Audience Segmentation:
    • Precisely identify shoppers who hadn't purchased from Doctor's Best in the past 365 days.
    • Applied minimum price threshold filters, aligning targeting with the brand's ideal customer value profile.
    • Excluded lower-value shopper segments to enhance budget efficiency and focus on profitable acquisition.
  2. Profit-Aware Bid Management:
    • Strategically reduced baseline bids by 50% across tested campaigns to establish a cost-efficient foundation.
    • Applied significant 80% bid increases exclusively for the high-value, well-defined NTB audiences, concentrating investment where it drives the most profitable growth.
    • Prioritized spend towards high-intent searches for top category terms made by these qualified NTB prospects.
  3. Targeted Campaign Optimization:
    • Concentrated efforts on non-branded Sponsored Products and Sponsored Brands campaigns where NTB acquisition was key.
    • Implemented dynamic bid adjustments informed by customer purchase history analysis.
    • Ensured algorithmic priority was given to reaching high-value NTB prospects over existing customers within these campaigns.

Building Sustainable Competitive Advantage

This targeted initiative proved that leveraging advanced analytics within a decisive strategy can cut through category saturation. 

results

Primary Outcomes:

  • +17% lift in NTB customers acquired through non-branded campaigns.
  • Decreased total CPCs across the test period, improving cost efficiency.
  • More strategic and efficient budget allocation towards high-potential NTB audiences, enhancing the profitability of acquisition efforts.

Secondary Benefits:

  • Improved overall customer acquisition cost (CAC) efficiency.
  • Enhanced targeting precision, minimizing spend on potentially lower-value or already-acquired customers.
  • Established a foundation for a scalable and profit-driven NTB acquisition strategy.

Comparison

Before
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