From years of experience selling on Amazon, we have learned two things: a customer-focused analytics tool is a necessity, and a self-service tool even more so. Why? Consider these points:
- Faster decision-making: Self-service analytics allow Sellers to access information quickly without relying on external resources. Sellers can easily create their reports, dashboards, and visualizations, enabling them to gain insights and make decisions faster.
- Single source of truth: With self-service analytics, all parts of the business have access to the same, up-to-date data from across the Amazon ecosystem, enabling better collaboration and improving productivity.
- Reduce costs: Self-service analytics can scale when there is an increase in adoption without causing any access issues or needing much help from IT specialists. As a result, Sellers using self-service solutions will spend far less on internal specialist support and IT systems.
Suggested reading: Check out our eBook Mastering Amazon Brand Analytics for insight into how analytics can drive your success as an Amazon Seller.
Nozzle and self-service
Our analytics tool, Nozzle, is designed to be the most effective platform for any Amazon Seller that wants to achieve real growth. Our self-service tool is what sets our capabilities apart from other analytics tools out there.
We provide a unique view on Amazon data analysis, offering:
- In-depth insights.
- A deeper understanding of your customers.
- Ad delivery and optimization.
- Tailor-made business solutions when needed.
Nozzle provides quantifiable insights on customers, performance, and campaign effectiveness. The tool is curated by Amazon experts, meaning it’s not just data processing for the sake of it. It is customer insight and revenue-driven.
- We focus on areas that no one else is touching, mining data that Sellers didn't even know existed.
- We use technology in a deliberate and thoughtful way, always to improve the seller experience.
- We understand the need for transparency and insights to help you (and your customers) win on Amazon.
We have now evolved our offering into true self-sign up, self-service. This is a crucial part of our journey to give Amazon Sellers a unique view of their customer relationships and transform their marketing strategies. We even offer a free 14-day trial and demo to give you a feel for how Nozzle works
If you can't measure, you can't improve
By helping you identify how effective your campaigns are, Nozzle helps optimize current PPC campaigns while planning for the future.
The marketing metrics Nozzle focuses on ultimately have the most impact on a Seller's business goal. This may be:
- Sales that are generated for one campaign but incremental to reach others.
- Ads targeted at key customer personas for longer-term funnel management.
- Re-targeting and bundling to maximize customer revenue.
Why it's important for Sellers
Understanding your customers:
- You get a deeper insight into who your customers are.
- You know what they are buying so have a better view of what they will like.
- You can develop effective internal forecasts for potential products and new campaigns.
- You can define more meaningful high-level Key Performance Indicators (KPIs).
- You can communicate your performance against your actual KPIs to all stakeholders.
- You can generate actions to improve or modify your KPI performance and take the rest of the business with you.
No more guesswork:
- Meaningful data provides guidance and evidence for implementing favoured strategies.
- Good data enables you to make confident decisions.
- Digitally driven and accessible reports assure your potential stakeholders/partners understand and are involved in the process.
So let's look at the value of some of these essential Nozzle-generated metrics.
Amazon does enable you to have a glimpse of Customer Acquisition Cost (CAC) by providing its New-to-Brand metrics from within Seller Central; but this treatment only tells half the story. What it doesn't do is give you customer perspective or context.
Why it's important for Sellers
Determines bottom-line ad success
A well-crafted and credible CAC is crucial in determining the success of your marketing and sales campaigns.
Monitoring shifting goalposts
According to Marketplace Pulse, Amazon Ads are getting more expensive. Advertising costs on Amazon are up 30% from the start of last year and by over 50% year-on-year. To succeed, you need to constantly monitor your campaigns to ensure your acquisition costs don't exceed your profit.
Keeping a pulse
Whether you're trying to work out how well your sales and marketing strategies are working or how good your product base is, it's vital to have a meaningful CAC to provide a pulse on the health of your products.
Customer Lifetime Value (CLV)
Pure CAC metrics are good but dangerously inexact tools for calibrating and scaling your company growth. If you want to grow in a profitable and scalable way, you must look beyond customer acquisition and get smart with CLV. Customer lifetime value shows you the average customer revenue over a specified period. To measure return on investment (ROI), you must balance your CLV against your CAC.
Why it's important for Sellers
Getting the best customers
Success isn't just about finding customers — it's about finding the right customers at the right time. You move beyond understanding the performance of your product to understanding the relationship between your customers and your products.
Retaining those customers
Customer retention tends to be less expensive than acquisition. By retaining customers — and growing CLV — you can spend more on customer acquisition (CAC) and still turn a profit long term. When you know your customer and what products they are after, you can focus your ad resources and products rather than expecting results by chasing everyone and everything.
Transforming your breakeven ACoS
Advertising Cost of Sales (ACoS) is a crucial indicator of the performance of your PPC advertising. Understanding your breakeven ACoS is also vital in setting your bid strategy. Knowing your CLV can move your breakeven ACoS to cover, say, four repeat sales and mean you can bid higher and win more sales.
Moving from product sales to funnel marketing
CLV gives you the scope to spend more on focused strategies. With a grasp on product-specific CLV, you get a picture of the most valuable products over the long term and especially why they are. With a view on customer-specific CLV, you can look to bring more of the Amazon ad arsenal (e.g. Storefronts, sponsored display, sponsored brand into play, etc.)
Suggested reading: For more on the importance of CLV, including how to calculate it, check out our handy guide — Customer Lifetime Value on Amazon.
Every Seller wants to grow their business, but may not know where to start. Selling on Amazon, though rewarding, is complicated. Thanks to the overwhelming and competitive nature of Amazon, it can be challenging to figure out how to survive, let alone grow your business.
Paying attention to the customer isn't just for their benefit — it uncovers the potential for growth for your business. The way to stay ahead is to take advantage of these growth opportunities. You need to be using these metrics to generate new business growth opportunities to keep you ahead of the game.
Why it's important for Sellers
Customer insights will help you grow
Customer needs are not constant. They fluctuate by season, social change, or even following the herd. Spotting such trends in the data gives sellers a leg-up over the competition. The danger is relaxing once you are on track and are generating a stable revenue as an Amazon Seller. In the cut-throat competitive market that is Amazon, if you are not growing — someone else is.
Opportunities will emerge
There are many paths to growth on Amazon – even with rabid competition. The right data and insight help you choose the right track. That track could be:
- Selling more of the same
- Developing product bundles or "subscribe and save" offers.
- Bidding smarter using CLV and breakeven ACoS analysis.
- Extending your product portfolio
- Broadening your offering to gain more sales from existing customers.
- Developing a storefront to capture browsers and future customers.
- Moving into new market areas
- Launching niche products to existing customers who know your brand in one sector but also shop in another.
- Opening up in new sectors where you have other advantages, e.g., better fulfilment or access to stock.
Suggested reading: Our blog How to Use Amazon Customer Analytics to Drive Growth goes into more detail on how customer analytics can upscale your Amazon growth.
Nozzle is key to sustained success
We are constantly evolving to better the experiences and outcomes for Amazon Sellers. Our continual self-improvement and upgrades echo and reflect the accelerating developments that Amazon is making to provide more advertising data to fuel its own flywheel.
The ultimate focus for Amazon Sellers going forward must be on the customer — and that focus is precisely what Nozzle provides.
Nozzle analytics will always keep you ahead of the game, and as a Seller on Amazon, that is where you want to be. We provide insights to Amazon sellers of all shapes and sizes. Why not sign up for a free 14-day trial, and see the difference that self-service analytics can do for your business.