Maximizing Cross-Selling Success: A Supplements Brand’s Journey

Introduction:

In this detailed case study, we delve into how a supplement brand overcame the hurdle of high customer acquisition costs (CPA) for its flagship product. The brand’s strategic use of data analysis and Amazon DSP (Demand-Side Platform) led to a significant reduction in CPA and a boost in customer loyalty, showcasing the power of targeted cross-selling strategies.

Problem:

The brand, known for its healthy treats, faced a critical challenge: the CPA for their $30 health snack equaled the product’s selling price. This alarming scenario threatened the sustainability of their marketing efforts, prompting the need for a more effective performance marketing strategy.

Strategy:

1. Data-Driven Insights: The PointStory team initiated the process with a thorough analysis of existing customer data, aiming to uncover key insights and opportunities for marketing optimization.
2. Spotting a Low CPA Product: Our analysis revealed a standout product in the brand’s lineup, also priced at $30 but with a significantly lower CPA of just $8, opening a promising avenue for cross-selling.
3. Utilizing Amazon DSP: To leverage this opportunity, we employed Amazon DSP, a robust advertising tool perfect for precise audience targeting.
4. Targeted Audience Segmentation: We created specific audience segments based on customers who had previously bought the $8 product, identifying them as ideal targets for cross-selling efforts.

Results:

The implementation of this cross-selling strategy led to impressive outcomes:

1. CPA Reduction: The campaign successfully lowered the CPA. While the $30 health snack’s CPA remained, the cross-selling efforts brought it down to $8, marking a significant decrease in acquisition costs.
2. Revenue Uplift: The strategy yielded an additional $7 in revenue for each customer acquired at the $8 CPA, making it a highly efficient method for promoting the $30 health snack.
3. Boost in Customer Loyalty: The strategy effectively engaged customers in two product categories, enhancing their loyalty and increasing the likelihood of repeat purchases.
4. Sustainable Marketing Model: With a more manageable CPA for the $30 health snack, the brand established a more sustainable and profitable marketing strategy.

Conclusion:

This case study underscores the importance of data-driven decision-making and strategic planning in overcoming marketing challenges. By identifying a lower CPA product and harnessing the precision of Amazon DSP for targeted marketing, the supplement brand not only achieved a reduction in acquisition costs but also saw an uptick in revenue and customer loyalty. This approach exemplifies the effectiveness of innovative marketing tactics in the e-commerce sector, benefiting both the brand and its customers.