OK perfect All right hopefully everybody has their headphones in now Good OK perfect Yeah we still have

some spots in the front with goody bags so if anybody didn't get a goodie bag and would like

some free product feel free to move up and grab one But then we'll go

ahead and get started for the 2nd time now Uh so thanks so much for joining us

today everybody We're super excited to talk to you about the Amazon marketing cloud and how well it is using

the AMC to unlock consumer sites As a quick intro as to who we'll be

talking to you today um my name is Simone I'm a team lead here at

Front row on the performance marketing team I've worked in the e-commerce space for about 5 years now both

on the performance marketing side and retail consulting side mainly focused on Amazon and highly

concentrated on the US market Then I'd hand over to my colleague Lucas Thanks Simon Um I'm Lucas I've been

with Front row almost 9 years this month um focused the entire time on Amazon marketing as or

Amazon advertising and yeah that's me And I am Haley I uh lead all media uh well for North America

for national and e-commerce media and we have just surpassed our one year anniversary working with Front row Thanks

so much All right then we'll jump right in Before we get into the hot

topic for today we just want to give you a quick intro or a quick overview of what you can

walk out of this room knowing at the end of this masterclass So by the end of this master

class you'll understand how you can utilize the Amazon Marketing cloud to know the value of each of your customers

how to understand what sets your best customers apart from your average customer and how

to reach more of your best customers And with that I'd hand over to Hayley to

give us a quick intro to Ella Thanks So a quick overview on who Wella Company

is for those of you not familiar you're probably most familiar with Weller Professional It is

a German brand um over 140 years you're old number one salon collar brand in

the world but well a company is made up of lots of different brands including OPI

which is the #1 nail brand and salons Noxin Professionals Sebastian Professional Claol uh GHD and Briogio So you

notice I just said the word professional and salon a lot Um we are a group of professional brands rooted

in that professional history who have now transitioned into consumer beauty um the last few years depending on the brand

Which leads us to our first key challenge as the brand teams Um we have very very strong professional awareness

We have very very low consumer awareness which is really difficult when you're selling on

a platform like Amazon Um we also have no direct to consumer website So anywhere you are purchasing

us it is on a website like Amazon or another retailer website or in store So

it's very limited purchase data and very limited insights into what that purchase journey looks like for

our customers And then our last challenge very unique to while I'm sure no one else has ever experienced this

uh we do have very high sales goals and very limited budget on the media

side So working with front row and really AMC um our goal is to unlock more sales

with the same budget So when we came to front row a year ago we told them we

really need to maximize every dollar that's being spent and achieve our sales goals and also grow share

So the first uh challenge we Uncovered to start to uncover this was limiting understanding of the

consumer purchase journey behavior So this looks like what tactics are driving sales even if it's not

immediate I'm sure all of us in here love page but we can't only spend page search

So what else we that is gonna drive that sales How are we maximizing past the first purchase New

to brand is great We love new to brand and getting that first purchase but

then how are we maximizing that afterwards through media And then what does efficiency look like by brand

So All of our brands although they're a commonality among them between hair and nail spaces they are very

different They have different um purchase prices They have different lifetime values there's different path to purchases for each and

then different repeat rates in between each purchase you have So what is that How do

we maximize that on Amazon specifically Thanks so much Hayley So as already noted Lucas and

I work at Front row Um Front row is a global e-commerce oh go back

Front row is a global e-commerce agency and we do basically everything to help brands scale their

growth online So we do everything from performance marketing to creative Um we also have our own BI

solution with our uh tech team at Catapult um and essentially we kind of help

you guys build strategies we help you build creativity and help you grow online We also

have over 400 employees worldwide with over 40 nationalities represented and over 20 languages spoken on the team so no

matter where your brand is based no matter where your business is based we're here to

help We also cover not only Amazon so marketplaces like Amazon Walmart we also help with D2C sites and basically

all other retail media options We also work with a variety of brand partners So whether you're

a scale up business or a larger enterprise we're also here to help Uh we are

mainly focused on beauty and CPG products but also help brands in spaces like electronics with brands

like Sennheiser and GHD And I think that's enough about us Uh let's get into the topic for

today with AMC Kind of in simplest terms I think the question is what is AMC And see

helps us to visualize it helps us to map different connections between different channels that we wouldn't otherwise have

visibility into So what does this actually mean Um the Amazon Marketing cloud is a database so it collects all

of the touch points so all of the different clicks views purchases that a brand

has with a consumer So we're looking at it from really a brand perspective to kind of

build out the journey that a consumer has in Amazon So we can follow then

the customer across multiple journey points So if we're looking first at ads how do ads interact with

the organic touch points and then we can further layer in that first party data to understand how that

those touch points further interacted with your customer So how do we access it The AMC is since the

database we just have essentially raw data floating in this cloud so we need to use SQL to

query the data to create again meaningful touch points um and you do require a BI solution to

then visualize those touch points So what we can think of um when we're thinking of the AMC and how

we're using SQL SQL is essentially like the chat GPT for for AMC so we

need to know the smart questions to ask to actually get a meaningful answer out of it So if

we think of the AMC as this data lake at the center of the AMC we have where

we have all of the collection of all of these touch points all of these data points

we can then connect in all of those media touch points so we can collect collect uh touch points

from sponsored ads from DSP um to understand the connections between those two channels and how

the consumer is moving between those two channels We can then incorporate all of our retail

touch points um to understand how they're behaving on the organic side So then we can understand OK

they're having a touch point with an ad they're going to the product detail page then organically How can

we make sure that we're integrating those touch points for the most efficiency We can then as I said connect

that first party data so we can connect people who are already um let's say signed up to your

newsletter they're already visiting your your website um and understand how we can connect all of these data points

again together We also should think of AMC as this cyclical cycle of analysis So this

is what we found when we're working with AMC every single time we ask a question

we do an analysis we get an answer it always leads to more and more questions So we have

to understand that this iterative analysis process is just part of AMC So we're never going to have this final

answer but what this allows us to do is understand our consumer better and understand their journey better

So for example if the first question we're asking is should I retarget my repeat customers So we

already know that our customers are going to keep shopping for us Is it worth it to invest in

media We then might lead to the answer or lead to the question what is the most effective way

for me to retarget my repeat customers This might then lead us to the question who are my repeat customers

So how can I understand my consumer and the most effective way to reach them At front row

we view the AMC process as kind of this three stage journey First of all starting with building the foundation

so at this stage we're really interested in increasing our the efficiency of our media

right So we just want to reduce this wasted ad spend and if I'm an advertiser one of the first

questions I might ask myself is how can I increase the return on my ad spend

uh what channel should I advertise on Basically again at base level we're just wanting to

reduce that wasted media spend On the second level we'll be optimizing for impact So again this is where we

want to increase not only we have the efficiency we want to increase that effectiveness here um

so you might be asking yourself um when can I reach my consumers when they're most likely to

buy so we really want to create more effective conversions at this stage And the third and

final stage here is becoming consumer centric So this is where we really want to understand who our customer

is and how they're shopping And when we think about how most brands are using the AMC they're usually

getting kind of stuck on steps 1 and 2 and these steps are really important right When we're optimizing

on Amazon we're optimizing for that return on ad spend We really wanna make sure that we're as profitable

as possible with these ads um but the challenge with getting stuck here is that we

don't really always understand our consumer because we get really focused on product and profitability What's different about Wella

And Haley and her team is that they're super focused on step 3 so consumer centricity has always been

um the number one goal that we've been working with So from the jump when

we first started working together now over a year ago as Haley said um we were starting with

step 3 because we know that 1 and 2 are base levels This is what we should be doing

all the time and where we wanna focus our growth is going to be on step 3 so

I would hand over to Hayley to tell us a little bit more about Wella Yeah I'll be honest

I didn't realize that Wella was quote unquote starting at step 3 until they showed me

the slide a few weeks ago I thought that was normal because for Wella the customer is centric

to everything we do so it's intuitive for us to start with understanding the customer

and really who that person is and from there the rest of the strategy would follow so We

started working with Simone and Lucas and the rest of the front row team These are some of the

key questions we started with what is the true value of our customer by brand And then also

does it differ if they're buying during a promo period like a prime Day or a T5

or just regular full price Um who are the top OPI customers and what are they purchasing on repeat

buys OPI was a very different brand in our mind because it's unlike a shampoo or hair dye or something

where you're gonna keep buying that same product over and over again For nail polish I don't know anyone

else in this room I've never finished a bottle of nail polish no matter how much I love the color

So it doesn't make sense to keep retargeting me with that same shade So what what are

what are they buying and who are these top customers and how can we replicate that Um and then what

is bringing in new customers We know internally our our hero skews or Ains and that's what

we're advertising but is that actually what's bringing in newer brand We weren't really sure

And then when someone comes in through that product what are they buying Are they

buying that same product line or as long as it has Wellow on it are they

OK skipping around to different product lines So with these questions in mind right Hailey and

her team they came to us with this list of questions and that's how we kind of came to

through the cases that we're going to be walking through today So the first case that we'll be looking at

is understanding the value of a wellA customer So we're looking at the lifetime value across all of the different

brands in Wella and understanding how this can guide our investment strategy Once we understand the value of

those customers we can then take a look at our top customers So for OPI looking at the

top 20% lifetime value customers what are they buying how are they shopping how are they different to

our average customer Then once we know OK we know how our best customers are shopping we

wanna learn how can we create more of our best customers So with the brand

Sebastian we'll be looking at finding the gateway to repeat sales so looking at those products that are most often

leading to second purchases and driving up that lifetime value and the goal of all of this is to increase

the value of your customer long term so I think with that I'll hand over to

Lucas to walk us through lifetime value All right um yeah let's talk lifetime value for that we

first need to introduce a new metric Um the question is is really centered around that longer term value

anything that happens beyond the first conversion um and for that we'll dive right in uh we introduce a new

metric or might not be new to you Um this is customer lifetime value so we're attempting to measure

a longer term value of a customer beyond the first conversion that has a a um time frame

attached to it This is not the natural life of a customer We're not talking 80 years 76 years

Um all our customers lead very healthy and happy lives um but we Fixing this at 12 months as

a look back period and then we take every purchase a customer makes and add it

up So very simple math All the purchases a customer makes within 12 months is what we call lifetime

value for the sake of this presentation Very exciting is that we are technically now

able to go a little bit longer than those 12 months but all the data that you're going

to see today is based on those 12 months So that's lifetime value all the purchases

in 12 months and each purchase that you add to that more loyalty drives up that lifetime value So

um that is good and the objective obviously is then to measure this more long term relationship with the

customer and um encourage it through repeat buying behaviors uh retargeting and so on Let's look at

an example of one single customer Obviously we don't stock our individual customers We look at a

larger base but let's do an example of a single customer So you're looking at a full year here

On the one side you have the purchase value of the item that they're buying and on

the other side you have the lifetime value that goes up over time So we got

a first purchase of Rapid Dry that's a slightly cheaper nail polish for us at

$10 Go in the car they're happy in February our lifetime value is $10 Um there's a second

purchase in May then And um that one is a bit more expensive They like the first product that

is um the nail and cuticle oil at $17 so quite a bit more expensive within the range of products

that we have in the OPI and a clear sign that they enjoyed the first product but notice that they're

buying a complimentary product to the first one right so they're not buying a different

shade or even the same shade of the same product And with that our lifetime value goes

up to $27.10 plus $17 The cart is filling and then they hit again later in the

year in October um with bubble bath one of our most popular um items And

lifetime value for that year goes up again for towards $39 So that's lifetime value

in action how how we see it for a single customer and obviously we look at

that as a more general metric for different cohorts and audiences of customers that we have

And Yeah that's introducing the metric Let's talk a bit more about why it's so important to us Hayley

can you share more about that Yeah I'll click for you Um cool So from Wellis PV

the reason lifetime value is so important to us is because if we didn't understand

it we are kind of artificially limiting our scale on Amazon First of all the goals we were

giving front row were way too conservative so these Rola goals we were giving them were too high So

they were hitting these max goals They can't spend anymore because this is the goal

they're getting from their client Um so we're hitting that ceiling very early on and

then all brands were treated equally So if you take a brand like nioxin which is hair regrowth and hair

thickening You're probably going to stick with that brand over and over again if your hair is

regrowing versus Clairol which is box dye that you would buy at like a drugstore or pharmacy Those customers

are notoriously unloyal as long as it's the same shade it's the cheapest product They're not necessarily going to come

back to that brand so they shouldn't be treated the same We could probably get

away with a lower rose on a brand like nioxone with loyalty versus with Clarol we need a higher return

on it because they're not as loyal We didn't have any data to back that up

So by default we're giving them the same goal for everyone Um and then we

were losing sales during promo period So like a prime day we were giving them the same

row as goals that we were giving them on any random Wednesday afternoon So especially with

attribution and if any of you have worked during prime day or asked for a

report during prime day to see how it's going you know the metrics was very low Attribution

is very slow during those times so we weren't even hitting our row as goal So spend was

very very low and we're missing out on a ton of valuable sales during that time

Yeah I shouldn't have done that Um alright and for us then the perspective becomes about first the

performance metrics and putting that into a new relationship So anytime we look at rows we're looking at the

attribution period of A channel or a type right so sponsored ads DSP 14 day

or 30 day attribution and with LTV increasing that look back window and getting a better

idea in terms of um how high the lifetime value goes but also um then um Um

Being able to make a call on qualitative difference right so the at first might be the same but we

might be getting more valuable customers at a lower row initially that then continue buying

our products Second is that this informs our full funnel strategy so it's a bit

of a classic at this point to go up the funnel if you have So are

able to afford this lower row that's part of it so we can pay more but

also we can pay more attention or we need to pay more attention in the back of the funnel This

is not where a lot of the budget goes in loyalty and retargeting Typically it

often has a nice ro so we do it but nobody really pays all that much attention And

what we learned from lifetime value is how much action is in the lower part of the

funnel and that it does pay off not necessarily penny pinch and sort of optimize the ads to death

but to figure out what the customer's doing right What product are they buying next What They going to do

next What are they looking for What sort of different types of our best customers

do we have So pay more in the beginning of the funnel and pay more attention towards the end

of the funnel is a bit of an outcome that customer lifetime value opens up for us

And then third is budget allocation So just in general this um this metric allows

us to treat different channels differently Um we are able to go more into sort of audience targeting DSP

Um at the same time um it enables us to potentially um look at other channels outside

of uh Amazon to buy external traffic um and so on All right so much for the

setup Let's talk about some um some more practical uses and sort of how we

put this into practice Um I'm gonna hit you with a formula It's not gonna

be bad Um this is it Nobody leaving OK Um so we got two things going

on Um we have average order value so your typical basket your typical shopping cart um And then we divide

the average lifetime value by that So we have the average lifetime value that we calculated earlier

We have your typical shopping cart and that gives us a factor So um a factor that we can then

use on our more traditional metrics that are based on a shopping cart right So

if you attribute an ad um say via an ad that um obviously as your typical

shopping um shopping cart value um but if we then um Divide the lifetime value by

that we get the profitability factor that we can then use on the rowers again Um this

is what this looks like uh in a Example that's pretty close to the actual

case that we have here Um so you saw the price is $10.12 dollars $17 So

we got an average order value of roughly $15 across brands and then we divide the $30 average lifetime

value over 12 months by that and we get a number 2 not too much math formula is

working and we have a profitability factor that we can then apply to say the rowAs

but also potentially other metrics um That we have there Rodents um all right and if

we then take that and apply it to the different brands then I'm showing you $30 for

all brands here Obviously the lifetime value is slightly different but the majority of the brands that we

saw have a very very similar profitability factor in the end So OPI and nioxin are very different

in terms of price point in terms of loyalty um what we already talked about

So we got a more expensive product with nioxin but also very high loyalty OPI is a bit more shopping

heavy because you have different colors and um but in the end sort of the difference between the

first purchase and how much people are willing to buy over a 12 month period ends up

being very very similar um so the average for our brands is roughly 2 And this we can then turn

into two things One is we can either be happy proves that we are getting essentially

more longer term value from the same adent at the same ros and we can kind

of start thinking about opening up the funnel sort of parts that were previously considered unprofitable It kind of

helps us make more sense of um the top of the funnel um but also we can be a bit

more um strategically aggressive I guess by Essentially doubling media um and just going way

up in the funnel down in the funnel and sort of uh maximizing in every direction

and that's kind of what we did but there's a bit more detail to it um so

Hayley I'll hand the clicker back to you Oh Um so lifetime value in action

So for media strategy we did maximize scale with our new rows um so we

gave front row new baselines that they were offered to have greater flexibility within that budget

allocation during evergreen times and during promo times Um because we also have this data we were able

to leverage more off Amazon support especially during promo periods so whether it's TikTok Instagram Google search

CRM etc we're able to bring these teams in because we could show that these

customers were really profitable and we had to drive as much traffic as possible Um and then also

during these promo periods we're able to revise our spend guidelines So Simone and Lucas they were

able to quickly optimize add spend adjust as needed without having to wait for me and my team to

come back and approve things or say OK we're OK with this we're comfortable with this

etc Um and then further what we are doing now we are sorting customers into different cohorts based

on their lifetime values This will really help with our targeting and then with further segmentation And

then we are continuing to purchase behavior analysis through AMC Um question number 2 my favorite um inside the

minds of OPA's top 20% So this is figuring out again who those top customers are what they're purchasing

and how they're purchasing So I had really two key questions for this and then my

expectation or hypothesis for each spoiler I was wrong on both of them Um the first

one is what are they buying on these repeat purchases I my thought my assumption

was that they are purchasing out their nail care routine So you're buying a topcoat and then a color

and then a base coat with it and then maybe some cuticle oil later on So you're building

out that routine long ways My second is what is different about these top customers What are they purchasing

So OPI is a brand that does have lots of limited drops We do collections to different movies

Last year we had Barbie This year we had Wicked There's different holiday collections summer collections etc

so my assumption was these top customers are the people that are coming in and purchasing these

products All right so looking at OPI's top 20% So when we're evaluating the top lifetime value

customers we're organizing them first into cohorts so we can see um the bottom 20% 20

to 40% and so on What we actually found when we organize these these users into cohorts is

that the top 20% of OPI customers are revenue generating over half of OPI's revenue which

is a lot So this also just highlights how important it is that we understand

these customers and that we're serving them because they are driving so much of our

revenue So how do we evaluate them The first thing that we look at when we're evaluating these top 20%

is what products are they buying So we wanna understand are they buying the same products as our average

customer or are they buying different products Then we're looking at price So are they buying

more expensive products and that's what Driving up their lifetime value or are they buying the

same products at the same price points but just more of those same products and then we wanna understand our

catalog so do our best sellers have the same status for our top 20% as they do for

our average customer or are are they buying different products entirely So this is what

we now know about OPI's top value customers So first of all they are driving

higher purchase value So the first question that we wanted to ask is are they buying different

prices than they are So they're buying more expensive products but they're also building baskets

with multiple products Then we also found that they're buying more variety so they're not just generating the same

the revenue from the same top 100 products as the rest of our average customers are but they're

actually penetrating much deeper into our catalog We also found that they're buying also not only different products but they're

buying more bundles and sets So they are building those bigger basket sizes but they're also really interested

in these highly curated bundles um that meet their needs and what they're interested in shopping in So handing over

to Lucas now to walk us through how these journeys start Thank you Um I've got some numbers

for you again and uh here they are The big one here is 34,961 or 35,000 Um

that looks a lot smaller if it's just on a slide The way I kind of visualize it is there's

about 70,000 people coming to OR That is half of them Um so if you're walking the halls today um

and you walk by the people every other person is kind of a journey that we analyzed obviously

not the exact people but uh helps kind of visualize the scale of this And when we say journeys what

we mean by that is purchases in a specific order for a single person right Um so

each of them is one individual um that bought multiple products The average um is 2 over this

analysis so they bought an average 2 products um but up to 13 and the look

back again is 1 year um as we mentioned previously And I'm gonna hit you

with a list now Um it's not gonna be bad Um this is kind of what we ended up working

with So on the left side you see the first purchase and on the right side then the second purchase

that happened and these are in order So um you see sort of the most common um

path that we found was from Babble bath um to Funny Bunny um and then we can go all the

way down the list but I hope Um this this gives you a bit of an

idea that the data doesn't have to be all that intimidating So it's a lot of

journeys but we find the most common ones and then we look for patterns And

that's what we did There um and here's what we found Um in first purchase we got 7

out of 10 1st journeys um or first purchases in the journey are bubble bath So one of our

most popular products makes sense not that crazy 7 out of 10 is Um a

lot though that almost looks like cheating right like that is more common than than you would think um

For even one of your best products But then on the second purchase we get a lot of

differences Um we still have Funny Bunny as sort of a second product that is just a popular color but

that is 2 out of 10 We then have 6 out of 10 purchases of topcoat uh

top and base coat um so more of a complimentary product um And um yeah what we

are able to see here is that the order matters right So it is not enough to look

at your best sellers which will give you your best sellers right But um the

um the difference in the second purchase that we see um you wouldn't be able to get from

just a list of your best sellers Um there's a difference in quality here um that you're able to get

by looking at these purchases in the order that they're happening in Alright and what do we

do with that Um we put it into action with media by um going down

the funnel essentially um we are able to target these um top 20% of our customers turn them into

a look alike Um so we're able to expand the audience right So we went much much smaller

in terms of audience by looking at our top 20% but we can broaden it

again by using lookalikes that we are then able to use for awareness campaigns at the

top of the funnel A little bit below that we have consideration with customer lifetime value

top 20% so targeting the actual top 20% let's say for new launches with new products where they're just

They've proven that they like our brand that they like our products that they're the most likely to

start with So we have some warm traffic for a new product launch But then in the purchase stage

we can also go deeper into the relationship We can offer them bundles and seasonal

sets um sort of what Haley talked about just a little a minute ago um and we can sort of

build that loyalty but also obviously um The um cart value right So if you

have a bundle like this where you have two products in one that already is a larger shopping

cart than is typical where people buy just one nail polish um and then when

we go down even further we can follow the um the journey that we saw

on the list previously where we can try to replicate Um by retargeting buyers of the first

product and showing them the second one kind of enabling them to to go down

the path that they were likely gonna take anyways um but that we didn't but that

um we can then reinforce um as a behavior And that's the media side Hailey will tell you a little

bit more about what's happening on the retail side with this info Um so the thing that's really

really great about Amazon that oh that we can't do on other retailers is virtual bundles

Uh hard bundles on other retailers are expensive more costly takes a lot more time through AMC and then especially

on Amazon we can create virtual bundles based off of these top products So here we have

Bubblebath and Funny Bunny together also called Bubble Bunny Uh we can personalize this to

our catalog It's very cost effective um and it's great because ideally we want them

to come back for a second purchase but if they don't if they only purchase this the lifetime

value is still gonna be the same Um and then our media impact on Amazon So these are some

of the DSP creatives we had live The OPI creative team hated me because I would ask for so many

creatives again with so many drops I thought we needed creatives for everything We're always running

so much at once Now we are able to streamline the creative so these top

new to brand drivers uh narrow down our creative for that focus on that through DSP through our

Prime video ads through uh sponsor brand video and focus just on these that are attracting new to brand

customers and then driving that higher lifetime value And then also off Amazon we've used this bundle

info to launch our TikTok shop So this is what we are launching here which

is a new to brand focused channel um and hopefully driving that same high lifetime value Our

last question finding the gateway to repeat sales So figuring out which product is purchased first

and then what is happening on the 2nd and 3rd purchases to drive long-term growth So

quick intro to Sebastian one of our cooler brands um it's one of our younger brands born in LA

the Sebastian products and has some story about their career path of how Sebastian impacted them And

these are two of our hero skews They both have a cult-like following The first is Shaper Hairspray

It's the number one best selling skew and hair salons in the United States Um one is sold every 60

seconds and then the second is dark oil which is our #1 best selling oil from

all of Wella's portfolio so not just Sebastian And it has almost 3 times more

earned media coverage than any other product in our portfolio which means there's a lot of organic love

for these products So just based on these slides here this is what we were including in all of our

new to brand Creative We thought we love it hairdressers love it It's gonna bring new people in So that's

what we ran with Yeah so as Haley said we had really high expectations of

these two products but of hairspray specifically So what we see from the shoppers on Amazon is that there

is a heavy reliance on hairspray It is the hero SK It does make up a

large portion of our revenue on Amazon So what we did when we were evaluating these purchase paths and

again to the slide you saw with OPI um we evaluated the top 25 most common purchase paths So what

are they buying first and what is the subsequent purchase afterwards So first they're buying

in the first instance drench shampoo and then they're following up with the same drench conditioner So

in within the same product line they're buying that shampoo and conditioner So when we were evaluating this

again we had so many assumptions around hairspray and how how much value hairspray is bringing to our

customers The first thing that we assumed is that hairspray is going to be the number one entry point to

the brand So Hairspray is going to be driving all of our new to brand It's going

to be the top 75% of these purchase or purchase pads What we actually found is that

shampoo and conditioner are as successful and rank higher at some points um as entry

points for for people who are new to Brand 2 Sebastian So what we found was over

crazy that egregious but what's interesting is that we look at the actual ranking of these products

So the top three gateway products are all shampoos and conditioners Hairspray doesn't even break the

top 5 which was really shocking to us So what's really interesting about these two being shampoo

shampoo and then conditioner in the top 3 Also weird is that these top two products are the largest

product sizes that we sell So this again we're asking the question who who's buying this Who is new to

brand and is buying the largest product size that we have available um and this also just kind of highlights

that uh AMC is a cyclical process right We are asking a question we want to know what how

people are buying and really how are they buying hairspray and what we found out is that

first of all they're not really buying hairspray in the first instance and then second

of all they're buying the largest products Why are they buying them Who is it Um so again we're

going to have more questions with every question that we ask The second thing that we assumed when we

were looking at these top 25 purchase paths is that um hairspray is going to lead

to more cross-category shopping So people are going to enter by buying hairspray because it is one of the top

hero products one of the most famous products that Sebastian has um and then they'll go on to buy

shampoo conditioner most likely hair oil and so that's the second most popular product And what we actually found

is that hairspray purchases only ever lead to more hairspray purchases So we're not seeing the cross

category shopping that we initially thought that we would So when looking here first at the

first purchase and where they're buying afterwards So again hairspray is only leading to new to more

hairspray purchases of these new to brand shoppers Then with conditioner we are seeing that conditioner is the

only category that's leading to cross category shopping and loyalty within its own category And then with shampoo shampoo is

only consistently leading to conditioner shopping So they're not even buying these consumers are not even then finishing their shampoos

and buying more shampoo They're actually then only buying the next product in the product line

And finally we have travel size hairspray so these mini hairsprays and our assumption was that these mini hairsprays

are serving as a tester product So people are using these as an entry point

to then maybe size up to the larger larger size of the hairspray Um what we actually

found is that travel sizes are almost never the first purchase in a purchase journey Um so travel size hairsprays

are almost always going to be a second purchase Um after after they've already bought the full size so we're

seeing that these travel hairsprays are actually more of a loyalty driver So our consumers who love the full size

hairspray they can't live without it when they travel and that's when they're buying it in their second step So

for us it's also we have the question now who else is buying these these mini hairsprays

What are they buying afterwards So we know they're going larger size mini where are they going next

So this next step in the analysis is going to be understanding um who they are what

are they buying afterwards what are steps what do steps 34 and 5 look like for these hairspray purchasers

And then I pass over to Hayley So next steps for media number one update our creatives to show

the products that people are actually purchasing Um this is for our upper funnel and mid funnel We've revised

all of our creative strategy to match what we've just found and then we are increasing loyalty So as

our targeting campaigns are going on we're rearing them with these products versus before we our assumptions on if they're

buying hairspray or shampoo or dark oil we're now able to base it on this data based off their first

purchase And for retail we do have the virtual bundles again my favorite Uh so we have the shampoos

and conditioners together which historically we have not and we are also trying to re-evaluate

the purchase of many hairsprays and reviewing these journeys Once they get to 34 what are they driving and

what is the loyalty driver here for them All right and that was 3 cases I hope very um

you you are as excited about them as we are and I wanted to take a minute to break

down what we're doing here not just in these three cases but what a more general sort of operating

system is for working with AMC You might have the same questions we had in the beginning but

you might also have other questions and um We really thought about um what kind

of um tool we could give you to approach a similar journey where the outcome is

kind of not known before and where you're gonna end up with more questions So there

isn't really a way I can give you a formula or a matrix or anything else

um but we do have an image for you and it's this um this is what's called a desire path

Um so you have a a walkway um A nice walkway in fact um but it is very

sort of linear rectangular It's kind of a an abstraction of reality and then you have humans and

they do what humans do and they find a shortcut and they go somewhere else Um and

that is what you can see in this path and it's kind of analogous to

what we did right Uh we have sort of these preconceived notions based on our best sellers based on product

feedback that we get from our customers um And we have an idea of what people do

but also we're wrong and um the way that we can think about this process is

that we have to do this detective work of finding these paths and then uh plastering them putting stones on

them making it easier to walk there allowing people to um well behave in a natural way and

not force them on these linear paths that they don't want to take And I think

this is a pretty wholesome way to think about marketing and especially things like retargeting um where you're not forcing

people to buy your thing but where you're actually trying to serve them in a better way

and sort of get rid of distracting and annoying ads and show them the right thing at the right

time um that they actually want And to simplify a little bit the actions that we can take there's fundamentally

um only really 3 things that we can do Uh we can change the product Um so

we can change the product that we showed to the customer we can uh change the customer so uh with

our targeting we can target a different um cohort of customers We can sort of go more upper lower funnel

we can cross target between brands we can target our best 20% um and so on

so we can change the targeting um and then we can change the creative So what

do we want them to do with the call to action Um that is the 3rd thing that we

can change and essentially any kind of action that you derive from the AMC and that you put

into media into retail will be one of those three things So if you're ever

stuck you can kind of recall here do I change my product my targeting or my creative And then

we found a few more that we call success factors things that we realized sort of a year in uh

were really really important to making this journey happen Um and the first one is a bit on

the nose but I'll say it anyways Um the first step is to get started If you

don't have an AMC instance this is kind of boarding call last chance 2025 we firmly believe is the last

year where this is optional Next year um Next year basically you're left with the shitty customers because everybody else

is using AMC and you really don't want that Good thing is it's easy to get started It's

a 5 minute thing I type really really slowly so it's probably faster for you but just

reaching out to your Amazon contact and saying Hey I want an instance Um we'll

get you started It's something that you can do before you go to bed today Um and that will

get you started and you can get started analyzing as well Um you have pre-built analysis in the

AMC instance that you can use So it's just one email away 5 minutes If you type as

slow as me Second thing is then making sure that you have access to your data right Um so

this is where it gets a bit more technical um for us uh and the kind of analysis that

we showed you so not pre-built analysis in um the AMC instance but the kind of things that

we did um It was really important that we have access to retail insights not just advertising data um

that is a feature that you get for free in AMC but the parts that we

used for this deeper analysis are paid so making sure that you know what to get and to make sure

that you have the best quality of data as well if you're going to make big changes based on

it um was essential to us Even more essential is the technical side then Um making sure

you have access to um both software where you need it so we have a software layer

with catapult that allows us to run these analyses in a less one off way and more uh ongoing um

SARS way but also just the technical knowledge within your team right Um so Simon mentioned

in the beginning that we use SQL to access this data I don't know SQL Simone doesn't

know SQL Hayley doesn't know SQL um and that should give you a clue that you do need technical knowledge

but also that it is very much about people It's not about a single nerd in

front of his computer We have 3 people on stage and it is about people Speaking of people

make sure there's not too many of them on the AMC team um on the brand

side specifically it really is easier to keep the team small I don't know who in this room

right now is on the agency side versus brand side I'm brand now I came from

the agency and I remember it was so difficult working with a client team that was filled with so

many decision makers because you'd get different direction each conversation There was a lot of um

just grayness with it So with something with AMC specifically It is really agile It's not linear You have flexibility

with it so as you're learning these answers and making the strategic shifts it is a lot easier

to have one or two people really leading that from the client side and then

giving that direction and working closely with the agency to keep yourselves going If we had a team

of 10 people deciding AMC on our side we This would have been done on

slide 5 We wouldn't have gotten very far with it at all So really do

keep your team lean if possible and then just internal communication back so everyone is on the same

page of course but main decisions one or two people is a lot easier Um and then

also make sure you're aligned to a singular goal whether it's AMC or just in general on your Amazon strategy

Define a point in time we do ours annually you could do it biannually where everyone

whether it's leadership brand teams retail teams sales teams everyone together focusing on a singular

business goal align on that and then every strategic decision you make after that will point back So

it makes it a lot easier to have challenges being given from lead team for example if this

actually happened recently where someone questioned why we're featuring shampoo and conditioner for Sebastian and I said

well we can change that and we can feature dark oil again but if our goal

is to increase long term value we know this is the product that's doing it So AMC

makes it really easy to push back and challenge and keep everyone focused on that singular goal for

the point in time All right and we have 2 more slides left Um a bit of orientation We have

a booth here If you want to talk to us later today tomorrow um we'll have questions in

just a second but you can reach us at our booth and hall A1 that's down

all the way to the corridor after the bridge Um that's a one you can win headphones

there Uh we have live audits that we'll do with you You can uh win a free conversion rate

uh audit of your Shopify store lots of things um That you can do and um

please visit us there Um also if you enjoyed this talk you've finished the first of 4 we

have one more today also about Amazon this time entering Amazon US from the European perspective um definitely a topic

that uh Not a lot of people are tackling today I think um and then we have another

beauty brand tomorrow with Kosovos talk about um retail media so going beyond Amazon and LinkedIn ads on specifically for

B2B marketing both tomorrow um yeah and that's it from us Um we look forward to questions

Oh before I get to your question if you did not get a goodie bag we'll have more um there's

still a few here in the front row um Yeah and we'll hand them out at

the end uh so you don't have to leave empty handed Your question please Yeah Yeah Yeah Yeah

Yeah Yeah that the formula works the other way but it's better to tell it this

way I I think visualization was wrong Yeah yeah Yeah no I I I I I got it um

I agree the formula should be the other way around um It was just easier to

talk about it this way to start with the the smaller part and think about it but the formula

would actually have to be the other way around to get to a profitability factor of 2 instead of

the message still makes sense right uh sort of what you do with the with the outcome of that formula

then We got a birthday over there Um we got another question there Well um we are looking

at YouTube brand but I would sort of call it a secondary factor right So the problem with YouTube

brand is um especially when you look at longer sales cycles if you look at effects that are

cross brand for example um with YouTube brand it's just very limited um you don't get it in all

the places on Amazon so we much prefer to um To use Neubran in AMC

then and build sort of a clean and real Neub brand because Neubran is usually a

metric that you get from advertising but we like to pull in the retail data into AMC additionally

to deconflict and get what we would call then a real Neub brand um so when they actually joined the

first time I spoke about that a little bit earlier That we also are getting access to 5 year

look back windows now which will give you a lot cleaner and newer brand because some

products you don't buy every year right um So um new brand is a factor but more of

a quality factor and we try to build a cleaner version of it than we would get

just from advertising data You pick you got the mic You had a slide with uh your

cohorts I I don't have headphones Or Or just scream if that works for you No

I don't want to No sorry Can you hear me test test test test test 1 million 2

million You hear me OK Uh you had a slide with your cohorts and uh we we

saw your top 20% customers Uh from where did you get this data Did you get it

from the AMC Yes uh that is aims data So cohort analysis is for us a part of the

um the catapult dashboard that we use So it's a standard analysis for you Obviously um you

can also do that as a custom analysis but um Yeah sort of building these cohorts is

essentially taking all of the conversions all of the interactions that you had um and then

building them out into these five cohorts that you saw there But that is AMC data

because obviously you can't use any of the single sources You need to combine the data to get a comprehensive

picture and that's only possible with AMC And that's included in the free plan of AMC yeah

And well yes you wouldn't be able to dive deeper into it um with just the free

I mean AMC is free You've got then uh retail insights which is also free Except for some

of the deeper analysis you need to pay um but you would be able to get this kind

of data uh for free You just need the technical skills OK And from this data I can

create um lookalike target audiences Yep you can um anything that you can essentially study you can directly

turn into an audience and you can play it back into DSP into sponsored ads and target it

actively Cool thank you You're welcome Um I've got two questions So the first one I think it was

sort of answered already but um can all of the AMC audiences be used on DSB and your Amazons

activity likewise or are there any limitations or yeah factors to consider Um on the technical side I

don't see any um limitations Obviously you have um You have the ability to send your audience

to DSP You have the ability to send it over to your sponsored ads account um I mean Uh don't

send too many into sponsored ads because the filter system sucks Um you're never going to find anything ever

again if you send all of them over um but besides that there's no technical limitation and obviously you

can also share with Amazon right So um the third part of that is then managed campaigns So making

sure that you share audiences between managed as well um would be sort of the third part of

the triangle there OK cool thank you And then my other question was um if you can also

leverage the audience data to use for like meta targeting or um on any other

yeah publishers um outside of Amazon or DSP There it gets a bit more tricky um so you have sort

of certain um Certain parts of this you cannot get out of Amazon um so obviously Amazon has

found a bit of a gold or diamond mine with the customer data That's what makes this

so special right And you will not be able to um sort of extract this very

personal data points out of Amazon which I think is fair um but yeah Cool Thank you Sure

Good morning Um I have a question to Eli um Yes I'm a former colleague um yeah uh

I would like to know um this unique MMC insights um are they are you able to leverage them on

your other channels and uh do they all true also on the other channels Are they only unique to

Amazon Um so other retail channels Somewhat we can't use the data to Lucas's point It does live with

um Amazon but we can use the insights What we have found is for in-store purchases it's

not as helpful but for online we have changed our search strategy and our creative strategy even in national

media what we're running on TV commercials and things like that has been based on AMC and

so far we have found this to be true Our new brand has been increasing across

retailer networks and our profitability has been increasing as well So we found for the most part this does

mirror over to the rest of our customers Thank you But no one else can So it's

it's a little bit of follow-up question uh Um I'm uh I'm trying to understand whether so

apparently the team is quite good at uh conducting performance marketing activities but uh the

the success you get in on Amazon campaigns does it create a new um uh demand or how do you

how do you meet You the cannibalization effect So is it uh I think the the uh the

better they get uh I assume uh the lower uh the demand is going to

be happening in in drug stores or in your like in Walmart uh online or uh so how do you

how do you measure the cannibalization effect here You don't to be honest that is that is a

blank spot for us between Amazon and the other retailers again without having purchased data of our own It's really

hard The best way we have found so far and we're looking for a better

solution so if anyone has it please share um but it's just measuring top line net revenue and sales

for the company as a whole and for the brand as a whole Um we also do it it's manual

but we do map out when we have Amazon activations going on versus other retailers to

see if there's any patterns So far we haven't seen anything right now All all ships are rising

so we can assume there's been none but we really don't have the data points and it that

is really a dark spot for us to be honest Thank you Maybe just to

add on to that as well I don't wanna hear myself talking um to add on

to that is that we know that people are moving online right People are moving away from brick and mortar

because of the convenience of ordering on Amazon and so to Hayley's point as long as

all ships are rising we know we're heading in the right direction but we of course there's going to be

cannibalization of course we're going to be taking consumers away from brick and mortar but the goal is

to make sure that if they're leaving brick and mortar they're staying with us when they're moving online

Any further questions OK great Thank you guys