A case study on using existing data to drive growth on Amazon
Cabinet is a health essentials brand for the modern consumer. Since 2018, it has provided a sustainable and over-the-counter medicine portfolio. Although they aren’t new to Amazon, their ambitions for the platform had outgrown their expertise. In order to grow their brand and launch a suite of new products, Cabinet knew that they needed a more detailed understanding of customer purchasing patterns. That’s why they turned to Nozzle for help in May of 2020.
“Amazon is our most important sales channel, and we were looking for a partner who could help us better understand our customers and give us the analysis to take our business to the next level” — Achal Patel CEO and Co-Founder, Cabinet Health.
Creating a long-term view of customer value
Cabinet wanted help understanding customer lifetime value in order to work out how much they could actually spend to acquire customers beyond first touch profitability. They needed help to answer specific questions such as:
- How much can I afford to spend on PPC to acquire a new customer on Amazon?
- Where can I spend additional investments to scale advertising?
To be really able to take their business to the next level, they would need a partner who understood the precise components of being successful on Amazon. "For us, we benefit from specialists who can extend our own skill sets, and Nozzle really helped us do that", explained Achal.
Using data to maximise advertising potential
Providing insight and identifying opportunities, Nozzle's team helped Cabinet understand the impact of repeat purchases, lifetime value, and advertising spend. The aim was to understand how factors such as breakeven ACoS could be better applied to target spend on Amazon PPC.
Achel explained that “by defining customer lifetime value and repeat purchase behaviour across our product range, Nozzle was able to adjust our breakeven ACoS and re-allocate advertising and SEO budgets. The result was our ability to run sponsored brand and product campaigns more aggressively, outspend competitors and gain market share, all while knowing we would still turn a profit long-term.”
Increasing impact and building brand
Nozzle’s analytics capabilities were crucial, helping attribute both on- and off-Amazon sales, and gain a holistic picture of Cabinets customers and purchasing patterns. It’s this perspective that enabled their success.
"We have not only been able to increase budgets by 40-50% on Sponsored Product campaigns, but have also been inspired to launch Sponsored Brands, Display and the DSP."
By partnering with Nozzle, Cabinet now have a better understanding of their customers and can develop their data analytics approach to take their business to the next level. Achel’s explained, “working with our Amazon data, Nozzle has given us the insights and recommendations needed to step-change our Amazon performance — the results really speak for themselves.”
Understand your customers like never before!
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