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Improvement in NTB sales while reducing CAC
The Doctor is In! Driving New to Brand Sales and Profitability for Doctor's Best
InDUSTRY:
Health & Wellness
TOPICS:
Advertising
Branding
Strategy
Data Analytics
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) using Intentwise’s advanced audience segmentation capabilities, and our data analytics platform, iDerive to build and activate high-value custom audience segments:
- 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.
- 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.
- 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.
Before
After
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