How to Drive Customer Acquisition on Amazon: Expert Strategies

If you're in charge of an online business and ready to go all in, instead of just jumping in without a plan, it would be better to have some valuable secrets about Amazon Pay Per Click (PPC). These secrets can turn clicks into sales and convert your browsing visitors into new, loyal customers. 

Getting people's attention is vital for online business success, and Amazon PPC is a superhero for this. It helps bring the right people to your product pages and boosts sales. But here's the thing: to use Amazon PPC effectively, you need a good plan and a deep understanding of how it works. 

In this guide, we’ll discuss the details of Amazon PPC and some best strategies for you to learn how to drive customer acquisition on Amazon. 

Advanced Strategies for Driving Effective Customer Acquisition 

While customer retention remains crucial for sustainable growth, new customer acquisition is equally essential. Here are a few customer acquisition strategies that can help you expand your customer base as well as enhance customer loyalty. 

1. Keyword Optimization

Ensure your product listings are optimized with relevant keywords, high-quality images, detailed descriptions, and compelling copy. Use tools to conduct keyword research and optimize your listings for better visibility and brand awareness. This acquisition strategy of optimizing keywords (Amazon Search Engine Optimization) is also crucial for maximizing the effectiveness of Amazon PPC campaigns. Here are some techniques you might want to know: 

• Use Long-Tail Keywords: Targeting specific, longer phrases can yield higher conversion rates as they capture more qualified leads. 

• Leverage Keyword Match Types: Strategically utilize broad, phrase, and exact match types to balance precision and reach a wider audience with your marketing efforts.

2. Bid Management

How much are you willing to pay for a click on your ads? Effective bid management is essential for achieving optimal ROI from Amazon PPC campaigns. Some bidding strategies include: 

• Leverage Automated Bidding: Use Amazon's dynamic bidding options, such as Dynamic Bids—Down Only or Dynamic Bids—Up and Down, to adjust bids based on the likelihood of conversion.  

You can also use atom11’s real bid calculator to determine the true bid of a keyword. The tool factors in the placement modifier and provides precise bid calculations that help you set competitive bids without overspending. It enables data-driven decisions that enhance ad placement for maximum visibility and profitability.

• Use retail-aware data: Implement Amazon PPC software like atom11 to access retail signals like inventory, competition, and PPC cannibalization. For instance, bid up when your competitor increases pricing for better conversions and sales.   

• Optimize bids based on performance: Use simple automated rules to raise and lower bids based on keyword performance. You can use atom11 bid optimiser feature to increase or decrease bid basis keyword performance.

3. Ad Creative Optimization

It’s human nature to click or enquire about an ad that either comes across as clever, intriguing, or has the exact product the potential customer is looking for. Compelling ad creatives and quality content can significantly impact Click-Through Rates (CTR) and conversion rates. Some techniques that will help you optimize your ads include: 

• A/B Testing: Experiment with ad copy, images, and calls-to-action to identify the most effective combinations that actually work. 

• Ad Placement: Analyze performance metrics to determine which Amazon ad placement generates the highest returns, whether on search results or product detail pages.  

• Automated Repricing: Implement automated repricing tools to dynamically adjust your product prices based on competitor prices, demand, and other factors. This ensures your prices remain competitive and maximizes your chances of winning the Buy Box.  

• Inventory Management: Use inventory management software to automate inventory replenishment, forecasting, and order management. This helps prevent stockouts, optimize inventory levels, and ensure timely order fulfilment, improving customer experience and customer satisfaction.

• Review Management: Reviews directly affect future conversions. One bad review can make potential and current customers question their decision to buy your product. Use automated review management tools to monitor and manage customer reviews effectively. Encourage happy customers to leave positive reviews and promptly address negative feedback to maintain a good reputation and credibility.  

• Social Proof and Influencer Marketing: Showcase customer testimonials, user-generated content, and influencer endorsements on your product listings. Identify relevant influencers in your niche and collaborate with them to promote your products to your target market.

• Data Analytics and Insights: Perform Amazon data analysis for doing market research, identifying customer behaviors, studying market trends, and updating your marketing strategies and the customer acquisition process. Track key metrics such as conversion rates, customer acquisition costs, and CLTV (customer lifetime value). Also, gain insights into competitor performance to refine your strategies and optimize your campaigns for better results.

  
  

Understanding Amazon PPC

Amazon PPC is performance advertising where sellers pay only when a shopper clicks on their ad. These ads appear throughout the customer journey: on Amazon search results, product detail pages, and other relevant locations. Amazon PPC has a few types: 

1. Sponsored Products

Sponsored Products showcases individual product listings and appears on Amazon search results and product detail pages. These ads are keyword-targeted, meaning sellers bid on specific keywords to trigger their ads when shoppers search for those terms. They typically feature the product image, title, price, and a short ad copy. 

2. Sponsored Brands 

Sponsored Brands (formerly known as Headline Search Ads) allow sellers to promote their brand and multiple products simultaneously. These ads appear at the top of search results and can feature a custom headline, brand logo, and multiple products. They are ideal for increasing brand visibility and driving organic traffic to a custom landing page or Amazon Storefront. 

3. Sponsored Display Ads

Sponsored Display ads target shoppers both on and off Amazon. These ads can appear on product detail pages, on the Amazon home page, and across the web on third-party sites and apps through Amazon DSP (Demand-Side Platform). Targeting options include interests, shopping behavior, and retargeting, allowing sellers to reach shoppers who have shown interest in similar products. 

4. Video Ads

Video Ads allow sellers to showcase their products through engaging video content. These ads can appear before, during, or after relevant videos on Amazon, capturing shoppers' attention and driving consideration. They offer an immersive way to showcase product features, benefits, and use cases. 

Each type of Amazon PPC campaign serves different purposes and can be used strategically based on sellers' goals, target audience, and budget. Experimenting with various campaign types and optimizing performance based on data analysis can help sellers maximize their advertising ROI on Amazon. Here are a few aspects to look into when implementing Amazon PPC campaigns.

Keywords and Targeting

Amazon PPC relies heavily on keywords. Sellers bid on relevant keywords that shoppers might use when searching for products. Targeting options allow sellers to refine their audience based on demographics, interests, and shopping behavior. This helps ensure that the ads reach the right customers. 

Budgeting and Bidding

Sellers set daily campaign budgets to control spending. Bidding involves specifying the maximum amount you're willing to pay for a click on your ad. Bids, along with relevance and other factors, determine whether your ad will appear in search results. 

Optimization and Performance Tracking

Regular monitoring and optimization are essential for successful Amazon PPC campaigns. Sellers should analyze keyword performance, adjust bids, refine targeting, and optimize ad creatives to improve ROI. Amazon provides various metrics like CTR, conversion rate, and Cost Per Click (CPC) to track campaign performance. 

So, what can help you get ahead of the game? Here are some things you can do as a part of your lead generation or customer acquisition efforts:

• Conduct thorough keyword research to identify relevant and high-performing keywords. 

• Continuously monitor and adjust bids to ensure competitive placement. 

• Optimize product listings for conversions to maximize the effectiveness of PPC traffic. 

• Test different ad creatives, targeting options, and campaign settings to find what works best. 

• Regularly analyze campaign performance and adjust strategies accordingly. By understanding and effectively leveraging Amazon PPC, sellers can increase visibility, drive traffic to their listings, and ultimately boost direct sales on the platform.

  
  

Measuring Amazon Campaign Success and Iterating

Continuous monitoring and optimization are essential to keeping your Amazon PPC campaigns effective and yielding the desired results. But which metrics should you track? Don’t worry, we will tell you exactly what metrics you should be monitoring. The key performance metrics to track include: 

ACoS (Advertising Cost of Sales): Calculate the ratio of ad spend to sales revenue to gauge campaign profitability. 

Trying to reduce your ACoS? Here’s an ad strategy that can lower your ACoS by 15%.

CTR (Click-Through Rate): Measure the percentage of users who click on your ads relative to the number of impressions. 

Conversion Rate: Assess the proportion of ad clicks that result in actual sales or other desired actions, such as sign-ups or downloads. 

Iterating on your campaigns based on data-driven insights, adjusting bids, keywords, and ad creatives to refine targeting can maximize your campaign results.

Conclusion

Customer acquisition is a never-ending process for Amazon stores. While sellers can use organic social media marketing strategies to drive customers, implementing advanced customer acquisition tactics on Amazon can help them drive conversions and sales in the Amazon marketplace. 

However, to implement these strategies, you need the right retail-aware PPC optimization software, such as atom11. atom11 can help you automate ad operations like bid optimization, search term harvesting, dayparting and more. It also saves you time downloading multiple reports and analyzing them. 

atom11 combines retail data with advertising to help you run more efficient ads. From thorough data analytics, providing quick insights into the root causes of sales fluctuations, competitor analysis, optimizing and automating ads, to helping with effective product listing, atom 11 has got you covered!.

Want to learn more? Book a call with atom11 today. 

FAQs

What are the best customer acquisition strategies?

Strong acquisition strategies maximize ROI and build lasting customer relationships. A long-term content marketing plan reduces costs while consistently attracting new customers. Affiliate marketing expands reach through influencers and creators, while free trials or samples build trust and encourage conversions. Growing an email list ensures prospects stay engaged with updates, newsletters, and promotions.

What are the steps in customer acquisition?

Customer acquisition starts with defining your target audience through research and personas. Next, select effective channels (paid ads, content marketing, or social media) and tailor strategies for each. Attract leads, then nurture them with valuable content and personalized communication to drive conversions. Optimize user experience with accessibility and strong service, and continually refine strategies to maximize ROI.

What are the 4 stages of customer acquisition? / What is the customer acquisition funnel?

The 4 stages of the customer acquisition funnel are Awareness (the customer discovers your brand), Consideration (they research and evaluate your solution against competitors), Conversion (they make the initial purchase), and Retention (they are onboarded and encouraged to become repeat, loyal buyers).

How to learn customer acquisition?

You can learn customer acquisition by studying the Customer Acquisition Funnel and its corresponding metrics (like CAC and conversion rate), continuously researching successful strategies used by industry leaders, experimenting with different online marketing channels (SEO, PPC, social media), and analyzing your own performance data to see which tactics and channels deliver the most qualified customers at the lowest cost.

What are the three acquisition strategies?

The three main acquisition strategies are Paid Acquisition (driving traffic via ads on platforms like Google or social media), Organic Acquisition (earning traffic through non-paid channels such as content marketing, SEO, and social media presence), and Referral/Partnership Acquisition (acquiring clients through recommendations from current customers or complementary businesses).

What are the most effective ways to drive customer acquisition?

In the context of Amazon selling, the most effective ways to drive customer acquisition involve a combination of internal and external strategies. Internally, you should leverage the full suite of Amazon Ads, including Sponsored Products for immediate visibility and Sponsored Brands to build recognition. Optimizing your product listings with high-volume keywords, professional imagery, and A+ content is essential for converting that traffic. Externally, driving high-intent traffic from social media platforms or influencer collaborations can significantly boost your sales velocity and improve your organic search ranking.

How can paid advertising drive customer acquisition?

Paid advertising acts as an accelerator for customer acquisition by providing instant placement on the first page of search results and on competitor product pages. On Amazon, every paid sale contributes to your overall sales velocity and conversion history, which are primary drivers of the A9 ranking algorithm. This creates a virtuous cycle where paid ads help you gain the initial traction and reviews necessary to climb organic rankings, eventually allowing you to acquire customers through free search results.

How do you improve customer acquisition rates?

Improving your acquisition rates on Amazon requires focusing on conversion rate optimization (CRO) to ensure that the shoppers who click your ads actually make a purchase. You can achieve this by testing different main images to see which generates the highest click-through rate, ensuring your bullet points address specific customer pain points, and maintaining competitive pricing. Additionally, participating in Amazon programs like Vine to generate early reviews can build the social proof needed to overcome buyer hesitation and increase your conversion percentage.

How do you measure customer acquisition performance?

Performance is measured using a variety of metrics available in your seller and advertising dashboards. Key indicators include Advertising Cost of Sales (ACoS), which shows the direct efficiency of your spend, and Total Advertising Cost of Sales (TACoS), which measures ad spend against your total revenue to show how well ads are driving organic growth. You should also monitor New-to-Brand (NTB) metrics to specifically track how many customers are purchasing from your brand for the first time rather than being repeat buyers.

How do you reduce customer acquisition cost?

Reducing your customer acquisition cost (CAC) on Amazon involves moving from broad, expensive targeting to highly specific and efficient campaigns. You can lower costs by aggressively adding negative keywords to your campaigns to block irrelevant clicks that do not convert. Improving your organic ranking through consistent sales and high-quality content also reduces your overall CAC, as it allows you to dilute paid advertising costs with free organic sales. Retargeting shoppers who previously viewed your products but did not buy is another cost-effective way to close a sale compared to reaching new prospects.

How long does it take to see results from customer acquisition campaigns?

While paid advertising can drive traffic and clicks almost immediately, it generally takes two to four weeks to gather enough statistically significant data to evaluate a campaign's performance accurately. This period allows for Amazon's attribution window to close, as some sales may be attributed to a click several days later. Building a sustainable, high-ranking organic presence typically takes longer, often three to six months of consistent sales velocity and positive customer feedback.

What are common mistakes to avoid in customer acquisition?

A common mistake is advertising products that are out of stock or have poor review ratings, which leads to high ad spend with very little conversion. Many sellers also fail to use negative keywords, resulting in their ads appearing for irrelevant searches that drain their budget. Another frequent error is making substantial changes to campaigns too frequently; the Amazon algorithm needs time to optimize for new bids or keywords, so it is best to wait at least seven to ten days before making further adjustments based on performance data.

What channels work best for customer acquisition today?

Beyond the standard Amazon search results, video-based channels like Amazon Live and Sponsored Brands video are currently among the best-performing formats for capturing attention and driving sales. Off-Amazon traffic from platforms like TikTok and Instagram is also highly effective, as Amazon often rewards listings that bring in external traffic with a ranking boost. Utilizing Amazon DSP (Demand-Side Platform) allows you to reach customers across the web and on devices like Fire TV, capturing potential buyers earlier in their shopping journey.

What is a good customer acquisition strategy for startups?

For startups with limited data and budget, a good strategy begins with a discovery phase using automatic campaigns to identify which keywords shoppers are actually using to find your product. Once you find high-performing terms, you should "graduate" them to manual exact-match campaigns for better control. Focusing on a narrow niche rather than broad categories helps preserve your budget. Additionally, startups should prioritize building social proof early through the Amazon Vine program and by offering limited-time coupons to entice the first set of customers.

What role does data play in customer acquisition?

Data is the foundation of a successful acquisition strategy, providing the insights needed to move from guesswork to precision. Amazon provides granular data on search term impressions, click patterns, and competitive benchmarks that tell you exactly where you are winning or losing. By analyzing this data, you can identify which products have the highest customer lifetime value (LV) and adjust your acquisition spend accordingly. Advanced tools like Amazon Marketing Cloud allow you to perform even deeper analysis, such as cross-channel attribution to see how different ad types work together to drive a single sale.