Idea
Why Amazon? Making the Most of an Unexpected Innovation Hub (Pt.2)
How the data-driven approach to retail is helping brands grow faster than ever before.
You wouldn’t take a road trip without a roadmap, would you? If you’re old enough, perhaps you remember unfolding the handy Rand McNally roadmap while figuring out how to get from New York City, New York, to Albuquerque, New Mexico. And if you haven’t sprouted any gray hairs yet, you likely rely on the technology built into your phone to ensure you wind up in Washington State instead of Washington, D.C.
In ecommerce, data is a bit like your business roadmap — and just like your favorite GPS system, it can help you avoid dead ends, downpours, and damaged roadways if you regularly consult it. If the definition of insanity is doing the same thing over and over and expecting different results, then data isn’t just a tool for course correction — it’s your link to rationality. And we need as much of that as we can get.
We already explored the basics of how the Amazon platform is an unexpected innovation hub. But that’s just part of the story. Amazon’s prompt deployment of the latest technologies equips users with the most powerful tools available to understand what works and what doesn’t in their business.
It’s particularly helpful in the beauty industry, which we put under the microscope in Part One. After all, what industry depends more upon keeping ahead of consumer trends and patterns for success? The good news is that Amazon provides brands with the data they need to do just that — bolstered by Recom’s supplemental data and analytical resources. Taken together, it’s your secret weapon in building a strategy around product development, marketing, inventory management, and more — giving you the dexterity to respond to evolving needs and preferences across all generations.
Indeed, there are few more efficient ways to advertise your brand anywhere. With data on virtually every American household, you can create custom audiences to reach new customers or inspire repeat purchases.
They say a picture is worth a thousand words — well, one might say the map above is worth a thousand sales. It illustrates real sales data by state for select brands we support at Recom, a useful tool for tactical, efficient marketing redirection. It’s such a powerful tool, many of Recom’s partnered brands have acknowledged differences in the allocation of sales on Amazon and have modified their marketing budgets to emphasize Amazon initiatives.
Perhaps there’s no more valuable tool Amazon provides than insights into your own customers and their purchasing journey. Between Amazon’s analytics behind more than 180 million Prime memberships in the U.S. and Recom’s proprietary data, virtually every single U.S. household is at your fingertips. Breaking into new customer bases or sowing the seeds for repeat purchases becomes that much easier — as does salvaging sales in danger of being lost.
It’s a use case where the full power of the data-driven approach begins to reveal itself. Amazon enables users to pull data from various potential or committed customers. Consider potential purchasers who drop out of the sales cycle — a particularly important customer subcategory to appeal to. These would-be customers can be grouped together and targeted with promotions customized just for them.
It’s not difficult to imagine the possibilities here, whether it be tempting high-spend customers with the latest premium items, incentivizing at-risk customers, or salvaging a cart abandonment with a well-timed and phrased reminder. And that’s just the beginning. It’s likely you can think of many more use cases with just a moment of thought.
This kind of data is unique to Amazon, which is one reason the platform is so enticing. And when combined with Recom’s proprietary data, its power increases exponentially. While data ownership can be a point of concern for some brands, that consideration isn’t relevant to its overall usefulness — it’s a secret weapon just waiting to be deployed. If your competitors aren’t using it, you have a competitive edge to leverage immediately. And if your competitors are while you aren’t, you’re in danger of being left behind.
Editor's Note: This is the second of three articles on the power of the Amazon platform for growing brands online. Look for Part Three in the coming weeks.