Amazon Brand Tailored Promotions: Revolutionizing Customer Engagement Through Personalized Promotions

What are Brand Tailored Promotions?

Amazon recently rolled out a new advertising capability called Brand Tailored Promotions that gives registered brands the ability to create highly targeted discounts for specific customer segments. This provides brands with a powerful new tool to incentivize purchases from customers based on their purchase history and interactions with the brand.

How do I access Brand Tailored Promotions if I am a part of the Beta?

Step 1. Hover over the "Advertising Tab" in the main menu.

Step 2. If Amazon has selected your brand to be a part of this beta you will see it under the advertising tab as "Brand Tailored Promotions".

If your brand meets the criteria for Brand Tailored Promotions then you will be able to view them in your seller account by navigating to the following link

How do Brand Tailored Promotions work?

Brand Tailored Promotions allow brands to create promotions that offer discounts ranging from 10-50% off to eligible customers. These tailored promotions can be sent to six different audience segments:

  • Cart abandoners - Customers who added the brand's product to their cart but did not purchase in the last 90 days
  • Brand followers - Those who have clicked to follow the brand
  • High spend customers - Those who have spent the most with the brand in the past 12 months
  • Potential new customers - Those who interacted with the brand's products or storefront but did not purchase in the past 12 months
  • Recent customers - Those who most recently purchased from the brand
  • Repeat customers - Those who have ordered the brand's products more than once in the past 12 months

This gives brands a way to provide incentives to customers at different stages - from loyal fans to first-time shoppers. The customized promotions encourage these audiences to make a purchase or come back to complete their purchase.

Create a Brand Tailored Promotion

Step 1. Provide a name for your promotion.

Step 2. Set the discount for that specific promotion.

Step 3. Set the budget for the promotion. The budget refers to the total amount of money you want customers to be able to redeem during the timeframe that the promotion is running. There is no fee from Amazon to run a brand tailored promotion.

Step 4. Set the start and end date for the promotion to run.

Step 5. Click "Submit Promo Code".

Early Feedback from Brands Testing the Feature

Though Brand Tailored Promotions is still in beta and only available in the US store, initial results from brands testing it out have been positive. Some sellers shared that they have generated hundreds of orders within just the first few days of creating promotions aimed at cart abandoners and potential new customers. Others said it was driving sales equivalent to a normal day's worth of advertising spend.

However, the success seems to vary based on audience size and promotion details.

Will Amazon customers receive emails notifying them of your Brand Tailored Promotion?

At this time, customers will NOT receive emails regarding your Brand Tailored Promotion. Instead, your promo code will primarily appear on search and product detail pages, occasionally marked with a green badge.

However, it seems likely that Amazon plans to combine these new targeted Brand Tailored Promotions with the ability to send emails to target customers featuring those promotions.

Is it free to run Brand Tailored Promotions?

Yes, at this time, there is no additional fee from Amazon for a seller to run Brand Tailored Promotions for their products.

Can I target only specific products in my catalog?

Currently, the only targeting for Brand Tailored Promotions is your entire catalog. However, it seems likely that Amazon will release features to allow targeting for specific products within your catalog in the future.

Coordinating Promotions with Other Amazon Tools

Brand Tailored Promotions taps into audiences that previously could not be targeted directly outside of Amazon's broader product promotions and coupons. It provides a welcome additional option alongside existing resources like the customer engagement email tool.

And this is likely just the beginning. It's easy to envision Amazon integrating the ability to coordinate tailored promotions and customer engagement emails, as is common on direct-to-consumer websites. Brands could first target cart abandoners with a tailored promotion, then follow up those who don't redeem with an email reminding them of the deal.

The platform is clearly investing heavily in providing brands more ways to convert interested customers into paying ones. More discounted purchase incentives appear to be on the horizon.

Considerations for Brands Using Tailored Promotions

Of course, brands will need to carefully evaluate the use of discounts and make sure they are still earning sufficient profit after promotions. Especially because a customer can combine multiple discounts like for example: a normal coupon you may be running. But when used strategically, the highly targeted nature of Brand Tailored Promotions provides advantages over broader discounts.

Brands interested in exploring the new capability will need to enroll in Amazon Brand Registry in the US marketplace. There is no additional fee to create tailored promotions beyond any optional ad spend to promote them. The minimum audience size to qualify is 100 customers.

As Amazon continues providing more options to turn site interactions into sales, brands have an opportunity to become more sophisticated in their customer segmentation and promotions strategy. Brand Tailored Promotions delivers the targeting and personalization needed to put the right offer in front of the right customer at the right time.