Amazon Analytics can help you measure your business performance and understand the customer behavior behind your sales. There are many different types of reports to view, including Customer Lifetime Value and Customer Acquisition Costs. Additionally, you can find information about Item Comparison and Alternate Purchase Behavior. The information presented in these reports can be very valuable to your business.
Customer Lifetime Value
Customer Lifetime Value (CLV) is an important metric that a retailer can use to measure its success. Amazon uses it to determine how valuable a customer is, and to tailor its services to meet their unique needs. The term is often abbreviated as LTV, and it has gained popularity in the business world. However, it can be confusing because it is akin to the loan-to-value ratio, which is a term used in banking.
To calculate CLV, you must divide your customer population into different segments. This will help you to determine the most valuable customers. For instance, if you have a subscription-based product, you can segment your customers by their price ranges and purchase frequency. Knowing which of your customers has the highest lifetime value can help you target your marketing efforts and pricing accordingly.
Customer Acquisition Costs
Customer acquisition costs (CAC) are the marketing expenses that a company incurs to attract new customers. They vary depending on the type of business, the target market, and the expected rate of return for those customers. For example, let’s say that an E-commerce company sells specialty products through a website called Shopify. It spends $10,000 on online advertising that brings in 1,000 new customers. This means that the CAC per customer is $10.
The cost to acquire a new customer is a very useful business metric. It includes the costs involved in introducing a product or service, getting them to buy it, and closing the sale. Businesses can use this information to develop a business strategy. By reducing CAC, they can increase their profits and provide more value to their customers.
Item Comparison
Amazon Analytics’ Item Comparison report can help you understand the behavior of your customers and your competitors. This report provides insights into how customers compare your products and make a decision to buy. You can see how many of your products have been compared and the percentage of views each product has received. You can also see which products your customers bought instead of yours.
The Item Comparison report can be helpful for understanding the effectiveness of your Amazon advertising. For example, if your product is a niche brand, you may notice more comparisons within that brand. You may want to consider creating a child SKU within the parent variation of your brand to make your product more relevant to your target audience. This can also help you optimize your marketing and sales funnel. You can also find out which products are popular among your competitors and learn about any possible customization opportunities.
Alternate Purchase Behavior
If you are trying to understand how often people buy a particular product, you can use the Alternate Purchase Behavior in Amazon Analytics report to see how many people did the same. This report will display the product title and the percentage of customers who bought the same product in the same day. It will also give you an idea of what the top five competing products are.
You can also use the Compared ASIN report to see which items are frequently compared to your product. This report will also show you how often shoppers view the compared product after viewing yours.
