The evaluation of advertising campaigns on Amazon is one of the most important measures to ensure long-term success when selling on Amazon. Most retailers refer to KPIs (key performance indicators) such as generated sales/orders, advertising expenditure or the advertiser's cost of sales (AcoS).
Until now, it was not possible to look in isolation at how many new customers were actually acquired via the advertising campaigns and how much a new customer costs. This has changed! Amazon now offers an insight into the number of new customers acquired and their costs (CAC = Customer Acquisition Cost).
The following additional metrics can now be displayed in the campaign overview:
- New customer orders
- New customer sales
- % of new customer orders
- % of new customer sales
The new customer metrics indicate whether an ad-financed purchase was made by an existing customer or a new customer. The figures can be displayed retrospectively up to 1.11.2018.
Amazon defines a new customer as follows:
To determine whether the customer is a new customer or not, Amazon looks at the last 12 months of the buyer's purchase history. If no products of the brand have been purchased within the last 12 months, the order is a new customer order.
This means that Amazon only uses internal data and the order is not a new customer if the customer has already made a purchase of the brand in the last 12 months. (It does not have to be the same product!)
Currently, the new customer metrics can only be viewed for Sponsored Brand campaigns. The metrics can therefore not be displayed for Sponsored Product campaigns!
Conclusion on the new customer metrics:
The new customer metrics are undoubtedly an important step in the right direction. Unfortunately, the calculation period (last 12 months) cannot be adjusted, so the metrics will not offer much added value for certain sellers. I am thinking in particular of products that are rarely purchased (washing machines, furniture, mattresses, etc.). For FMCG brands (Fast Moving Consumer Goods), the metrics are much more valuable, as orders are placed regularly and the 12-month observation period fits.
Furthermore, the restriction to sponsored brand campaigns is annoying, as my clients' main sales are generated via sponsored product campaigns.