In this episode, Matt Anderson and Rael Cleath discuss their backgrounds in e-commerce and introduce their companies, OptimizeOn and Nozzle. They explore the value of customer lifetime value (LTV) and how it can inform strategy for events like Prime Day and Black Friday. They also discuss the struggles that clients face in e-commerce, such as margin pressure and the constant asks from vendor managers. Matt shares his recommendations for focusing on profitable products and driving organic growth. They emphasize the importance of granular analysis and understanding the customer journey. In this conversation, Matt Anderson and Rael discuss various topics related to advertising and marketing on Amazon. They touch on ad spend optimization, experiments and budgets, the importance of mobile-ready hero images, the rise of marketplaces, the Amazon Marketing Cloud, and the overlap between DTC and Amazon. The perfect introduction to each aspect of the marketplace journey before taking a deeper dive into each every episode.

Key Takeaways

• Understanding customer lifetime value (LTV) is crucial for building a successful brand on Amazon.
• Prime Day and Black Friday can be complicated for brands, as they often result in higher costs and lower-quality customers.
• The right balance between new customer acquisition and retention depends on the brand's growth goals and profitability.
• Focusing on profitable products and driving organic growth is key to long-term success in e-commerce.
• Granular analysis and understanding the customer journey are essential for making informed strategic decisions. Optimizing ad spend on Amazon involves experimenting with different strategies and channels to increase margins.
• Mobile-ready hero images are crucial for grabbing attention and increasing click-through rates on the digital shelf.
• Marketplaces like Tesco and B&Q are expanding their digital shelves, providing opportunities for brands to reach a wider audience.
• The Amazon Marketing Cloud offers privacy-first insights and allows for data sharing and analysis across multiple parties.
• The overlap between DTC and Amazon is often smaller than expected, and understanding this overlap can help adjust customer acquisition costs and lifetime value calculations.

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Matt Anderson LinkedIn: https://www.linkedin.com/in/mattandersonoptimized/
Rael Cline LinkedIn: https://www.linkedin.com/in/raelcline/