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Boston | Dublin | London | Paris | Shanghai Driving Business Results on Amazon Presented By: Melissa Burdick - Leigh & Burdick | Day 1 Digital Danny Silverman – Clavis Insight

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Page 1: Driving Business Results on Amazongo.clavisinsight.com/rs/573-RCS-461/images/Driving... · 2017-07-21 · optimizing for Amazon’s algorithms, supply chain, designing product for

B o s t o n | D u b l i n | L o n d o n | P a r i s | S h a n g h a i

Driving Business Results on Amazon

Presented By:

Melissa Burdick - Leigh & Burdick | Day 1 Digital

Danny Silverman – Clavis Insight

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© Clavis Insight

About Clavis Insight –The Industry Leader in online retailer monitoring and analytics for

manufacturers

Dynamic monitoring and analytics for governance and measurement

Performance reporting to prioritize actions that drive growth

Content auditing and analytics that help protect and enhance brand equity

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© Clavis Insight

Today’s Speakers

Melissa Burdick spent a decade at Amazon.com 2005-2015. She helped structure the early strategy for the retail consumables business and launched 300 CPG manufacturers from P&G to Burt’s Bees. She also was an early member of the Advertising team (AMG), creating the first ecommerce ads and sponsorships for Amazon’s programs. She now helps brands with their ecommerce strategies with a specialty in effective marketing and designing for online profitably. She is a partner is an ecommerce strategy consulting firm (Leigh & Burdick) and founder of an Amazon marketing company Day 1 Digital.

Danny Silverman leads product and corporate marketing at Clavis Insight. He is an established industry thought leader with over 14 years of experience helping CPG/FMCG brands grow online presence and sales. Prior to joining Clavis Insight, he led the Sales Strategy & Support practice at Catapult eCommerce. Before that, he spent eight years at Johnson & Johnson where he was responsible for spearheading J&J’s eCommerce strategy and capability.

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© Clavis Insight

About Leigh & Burdick and Day 1 Digital

With a combined 20-years ex-Amazon experience, Andrea Leigh & Melissa Burdick run a strategy advisory firm that develops winning strategies for brands to accomplish their goals on Amazon, including pricing and assortment strategy, marketing and optimizing for Amazon’s algorithms, supply chain, designing product for online, organizational structure, negotiation, ecommerce education and workshops, and more

With Amazon it’s always “Day 1”. Day 1 Digital is a marketing agency focused on strategy and execution of Amazon’s self-service marketing platforms of paid search and display advertising. Day 1 has earned their Advertising platform accreditation and is comprised of former Amazonians and Googlers

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© Clavis Insight

Building Your Amazon Playbook

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© Clavis Insight

The Vendor Flywheel Strategy: BUILD | Drive | Earn

BUILD

Right

Assortment

In-Stock

AvailabilityContent SEO Enhanced

Content

Consumer

Reviews

Source: Chris Perry, RNG; Build | Drive | Earn methodology originally created by IRI

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© Clavis Insight

The Vendor Flywheel Strategy: BUILD | DRIVE

BUILD DRIVE

Subscribe

& Save

Promotions

MerchandisingAMS Search

AMG Media

Right

Assortment

In-Stock

AvailabilityContent SEO Enhanced

Content

Consumer

Reviews

Source: Chris Perry, RNG

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© Clavis Insight

The Vendor Flywheel Strategy: BUILD | DRIVE | EARN

BUILD EARN DRIVE

Subscribe

& Save

Promotions

MerchandisingAMS Search

AMG Media

Right

Assortment

In-Stock

AvailabilityContent SEO Enhanced

Content

Consumer

Reviews

More

Reviews

Search Rank

OpportunitySales

Growth

Share

GrowthSocial Sharing

Source: Chris Perry, RNG

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© Clavis Insight

Market the right offerings on the right platforms

• Everyday Shopping

• Planned

• 1P & 3P

• Multi/Club Packs & Cases e-Commerce SKUs & Packs

• Target ASP: $15

• Basket Building

• Planned

• 1P Only

• Multi/Club Packs –smaller qty than core

• Target ASP: $3-7

• Same-Day Delivery

• Planned

• 1P Only

• Perishable SKUs

• Target ASP: $2-10

• 1-2 Hour Delivery

• Impulse

• 1P Only

• Special Launches

• Target ASP: $2-10

• B2B Shopping

• Planned

• 1P & 3P

• Multi/Club Packs & Cases e-Commerce SKUs & Packs

• Target ASP: $15-30

BUILD

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© Clavis Insight

Ensure you have the right formats for online

Bundles – cross category & brand

Light WeightDehydrated

Packaging

BUILD

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© Clavis Insight

Amazon is a Price Follower, not a Leader

2020

$15.99 $9.97

$7.99$5.99

SAVE $2.00WITH COUPON

Ineligible for Marketing & Promotions

CRaP: Can’t Realize any Profit

Pressure to lower costs to Amazon or provide additional funding

Lots of stages and severity of CRaP ( i.e. pre-CRaP)

CRaP status inhibits growth of your items

Amazon philosophy – CRaP is the vendor’s problem

Don’t ignore CRaP

BUILD

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© Clavis Insight

Empty Shelves = Empty Carts = Wasted Marketing $

*1P Brands have very little control over their inventory –especially challenging for new items

BUILD

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© Clavis Insight

Third Party Manages Their Own Inventory

Most limited manufacturer control: Amazon prices and makes supply decisions

Best for brands with richer margins whose products fit nicely into Amazon’s fulfillment model

3P MARKETPLACE1P - RETAIL 3P FBA (2P) HYBRID: 1P+2P+3P

Significant manufacturer control: Pricing, inventory

Best for brands seeking to circumvent Amazon’s price matching and as backup supply

Sell via multiple channels

Most manufacturer control in this model

More challenging to go from 1P to 2P or 3P

Best for brands who want ultimate flexibility and control

Significant manufacturer control: Pricing, inventory

Manufacturer ships product directly from their warehouses

Typically not Amazon Prime-eligible

BUILD

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© Clavis Insight

Above the fold content = Search RelevanceBelow the fold content = Conversion

ABOVE THE FOLD BELOW THE FOLD

ROLE: Search RelevanceAMAZON COST: Free to upload panel images and videos

ROLE: Conversion

AMAZON COST: $100’s/page and up for self-service and custom builds

Live Links

BUILD

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© Clavis Insight

The Amazon Detail Page Algorithm

2 Factors: Relevance & Performance

I.) Relevance: Amazon’s search algorithms prioritize detail page content in the following order:

1. Titles2. Bullet Points3. Attributes4. Product Description

II.) Performance: how Amazon ranks products• Sales Velocity• Sales History• Inventory Levels• Price• Detail Page Conversion• Product Reviews

Improve Your Metrics:• Ensure product titles & content are

SEO optimized

• Ensure bullet points have all the relevant information

• Know what keywords convert –integrate into your content

• Read customer questions – provide responses and update bullet points to answer pain points

• Get (recent) reviews – leverage Vine

BUILD

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© Clavis Insight

Employ a Mobile First Strategy

80% of customers shop Amazon via Mobile

43% of customers shop exclusively via mobile

Mobile optimized images & content

Invest in marketing programs (paid search & display advertising)

BUILD

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© Clavis Insight

When Brand Matters Less, Reviews & Price Matter More

Key Decision Factors:

Star Rating # Reviews Selling Price Available Promotions Prime Eligible

BUILD

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© Clavis Insight

When Brand Matters Less, Reviews & Price Matter MoreBUILD

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© Clavis Insight

Reviews are critical

94% of Amazon visitors consult customer reviews on Amazon*

Recency matters – continuous inflow of reviews Negative reviews – respond & contest New items – launch with reviews (Vine)

Tools like Clavis can quickly identify review gaps by item

BUILD

*PowerReviews, Mapping the Path to Purchase June 2016

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© Clavis Insight

The Vendor Flywheel Strategy: DRIVE

BUILD DRIVE

Subscribe

& Save

Promotions

MerchandisingAMS Search

AMG Media

Right

Assortment

In-Stock

AvailabilityContent SEO Enhanced

Content

Consumer

Reviews

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© Clavis Insight

3 Pillars: Merchandising, Paid Search, Display Advertising

Flat Fee $ Amazon Marketing ServicesCost Per Click (CPC) $

Amazon Media GroupCost Per Thousand (CPM) $

AMG MediaAMS SearchMerchandising

Sponsored Products

Headline Search

Product Display

DesktopMobile

Email

Link In(Amazon Detail Page)

Link Out(Brand Site)

Desktop Mobile Kindle AudienceFire TV

SamplingOffers

DRIVE

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© Clavis Insight

Customers love price discounts

Deal Type Duration Min % Off

Price Discount Up to 12 mos Any

Deal of the Day 1 Day >20%

Best Deal Up to 2 weeks >10%

Lightning Deal Up to 6 hours >15%

Coupon (VPC) Up to 12 mos Any

Promo Code Up to 30 days >15%

Alexa Deal 1 Week+ >any

DRIVE

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© Clavis Insight

It’s not enough just to have a promotion – you have to plan additional traffic drivers for better discoverability

Brands leveraged their own social media channels & Amazon marketing levers to promote their offers

DRIVE

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© Clavis Insight

With 55% of product searches starting on Amazon*, investing in paid search is essential

Sponsored Products Headline Search Product Display Ad

1P & 3P 1P & 3P* 1P Only

*Headline Search Ads just recently opened up to 3P = more potential competition

DRIVE

*Bloomreach

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© Clavis Insight

Product Display Ads have worse ROI – but can serve as a good and relatively cheap marketing platform

DRIVE

Homepage – lots of traffic

Leveraging Designer Protein’s AMG

Strong Call to Action –Persuade to Convert?

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© Clavis Insight

Newly Launched: Brand StoresNEW!

www.amazon.com/amazonbasics

• Own a unique Amazon web address

• Create multiple pages to showcase your product catalog

• Start with pre-made mobile and desktop layouts

• Receive traffic from Amazon search and detail pages

• Use Headline Search Advertising to drive traffic to your store

*They are FREE – because you have to pay to drive traffic to them

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© Clavis Insight

Paid Search Tips

1. Setup & structure are extremely important – spend time here2. Run always-on campaigns with seasonal ramp-ups 3. Amazon Search (product focused) is not Google Search (intent/solution focused)4. Play both offense and defense – set different KPIs for different strategies5. Use features with grain of salt (Bid+, Win Rate)6. Reporting is painful – outside work is typically required to manage your business7. Don’t “set & forget” for optimal results

DRIVE

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© Clavis Insight

5 key display advertising platforms – leverage mobile & AAP for entry

Desktop

(Owned & Operated)

AAP

(Audience Extension)

Mobile

(App & WAP)

Fire TV Kindle

$$ $$ $-$$$ $-$$ $

DRIVE

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© Clavis Insight

AMG Targeting is powerful – develop a strategic framework with well-defined KPIs & measure results

DRIVE

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© Clavis Insight

Targeting Example:Find customers who’ve bought Brand & encourage subscription

KPI: Subscription Penetration Increase

1. BUY TREAT2. AAP RETARGETING

OFF-AMAZON WITH SUBSCRIBE & SAVE AD

3. DRIVE TO PRODUCT PAGE WITH SUBSCRIBE

& SAVE ON DEFAULT

DRIVE

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© Clavis Insight

6 Factors Influence AMG Results

1. a) Retail Readinessb) Proper setup for tracking 2. Targeting

3. Creative

4. Call To Action

5. Platform 6. Landing Page

DRIVE

Tip: Track Meta-data at a campaign level – many variables influence performance

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© Clavis Insight

Prioritizing What Drives Value

1. Search algorithm basics - If you don't show up in search, you don't exist2. Have to have enough content to convert3. Need to be in stock4. Must have negotiations leverage in order to profit5. Leverage effective and efficient marketing vehicles (paid search & media – especially AAP & Mobile)6. Ability to report & measure results & impact

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© Clavis Insight

Measuring the Success of Your Amazon Playbook

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© Clavis Insight

Here’s how it works:

5 Ps are within your direct control

• Product

• Placement

• Price

• Promotion

• Perfect Page

PRICE

PLACEMENT

PROMOTIONPRODUCT

PERFECT PAGE

To organize and prioritize eCommerce intelligence and actions, we have pioneered a familiar, yet powerful framework

These 5 Ps drive the 6th P:

• Performance: Search, Sales, Share

PERFORMANCE

Clavis 6Ps eCommerce Intelligence™

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© Clavis Insight

Applying the 6Ps framework to Amazon analytics will help organize and prioritize insights, actions, and results

PRICE

PLACEMENT

PROMOTION

PRODUCT PERFECT PAGE

PERFORMANCE

• Margin• MAP and 1st Mover

• 1p vs 3p

• Promotions• AMS

• Buy Box • Availability

• Shopper Q&A• Ratings & Reviews• Content Integrity

• Sales and Best Sellers• Category share• Search Rank

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© Clavis Insight

Page Analytics to Consider: Above the Fold

Is the image correct?

How many bullets?

What’s the price?

Is it on Subscribe & Save?

Who are the other sellers?

Are there variations?

Is there a video?

Is there a lower price?

Who has the Buy Box?

What’s their reputation?

Is it in stock?

Is the product content correct?

How many images?

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© Clavis Insight

Page Analytics to Consider: Below the Fold

Are there promotions on the page?

Is there A+ content?

How are AMS campaigns

performing?

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© Clavis Insight

Page Analytics to Consider: Shopper Generated Content

How many questions and answers are

there?

What are my Ratings & Reviews statistics?

What questions are shoppers asking?

Are there keywords shoppers use?

Are there keywords shoppers use?

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© Clavis Insight

Performance Analytics

How is my business trending?

How are sales vs. goals?

What are my best sellers?

Are there CRAP risks?

What’s my category share?

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© Clavis Insight

Questions and Answers

Danny SilvermanMelissa Burdick

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© Clavis Insight

Clavis leading-edge proprietary technology automates online store monitoring, at scale, so that teams can focus on taking actions

Our technology harvests data from online retailers anywhere

in the world…

…and captures anything shoppers might see on desktop,

mobile web or app…

…to present standardized, organized and actionable

analytics and insight

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© Clavis Insight

Clavis Insight OneView for Amazon is a complete analytics and insights solution to maximize sales and win on Amazon

OneView Dashboard

Sales Analytics

Buy Box Analytics

Best SellerAnalytics

Margin Analytics

Promotions Analytics

AMS Campaign Analytics

Reviews Analytics

Q&A Analytics

First Mover Analytics

3P Brand Protection

Amazon Category Share*

Premium Options

OneView for Amazon Reports

OneView brings it all together with over

200 points of actionable analytics!

Vendor Central AMS

Amazon.com Clavis

Phased roll-out to all Amazon markets*

*Release dates TBD

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© Clavis Insight

Questions and Answers

Danny SilvermanMelissa Burdick

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© Clavis Insight

Coming Attractions

October 4 | The Exchange, BostonClavis Insight

eCommerce Accelerator Summit

September 26 | ChicagoPath to Purchase Institute eCommerce Symposium

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© Clavis Insight

Boston| Dublin | London | Paris | Shanghai

6Ps eCommerce Analytics™

Thank you!

For More InformationVisit clavisinsight.com | Email [email protected]