Getting your products in front of the right audience can take a lot of time and money. Encouraging repeat purchases from previous buyers can help you increase conversions while maintaining or even reducing your promotional costs.

Amazon’s Brand Tailored promotions feature allows you to do just that. You can create exclusive discounts and offers for both past and prospective customers who follow or buy from your brand. These discounts are based on past purchases and customer engagement in your store.

Keep reading to find out how it works and what you need to consider before getting started.

How Brand Tailored Promotions Work

The Brand Tailored promotions feature is available to registered brand owners. Check if your brand is eligible to participate in the Amazon Brand Registry. There is no fee to set up a tailored promotion.

With this feature, you can tailor your promotions to audiences created by Amazon. You can only create these promotions for audiences of at least 1,000 customers. Eligible customers in your selected audiences will see your promotion on search, detail page, and the promotion shopping page.

These promotions only apply to a selected brand’s product for the brand owner’s catalog. If multiple sellers are selling a brand’s products, the brand tailored promotion will only apply to the seller who created the promotion.

Amazon Brand Tailored Promotions Audiences

Repeat customers: ordered your products more than once in the past 12 months
Brand cart abandoners: have added any of your brand’s products to their cart in the past 90 days but haven’t purchased from you
Recent customers: the 5% of customers who most recently purchased from your brand
Potential new customers: clicked on your products or added to cart in last 90 days but haven’t purchased in the past 12 months
High spend customers: the 5% of customers who spent the most on your brand’s products in the past 12 months
Brand followers: customers who follow your brand on Amazon
Top-tier customers: have made recent purchases and spend the most; these customers tend to buy frequently
Promising customers: bought recently, spend above average, and only buy occasionally
At-risk customers: haven’t purchased your products recently or frequently; spend varies

Amazon recommends different engagement tactics for each audience. For example, you might want to offer discounts to your repeat customers to deepen brand loyalty and encourage them to make repeat purchases. Offering a discount to a brand cart abandoner might result in a sale. Tailoring your discounts for top-tier customers, brand followers, at-risk customers, and more can help you reach the right audience with the right message at the right time.

How to Create a Amazon Brand Tailored Promotion

Creating tailored promotions is easy. Here’s what you’ll do:

Go to the Advertising tab in Seller Central and choose Brand tailored promotions.
Select Create a promotion.
Choose the brand and audience you wish to target. You’ll see each audience name along with a description and the size of the audience.
Name your promotion (this will not be visible to customers) and choose your discount percentage, budget, and the start and end dates for your promotion. The discount must be between 10-50% and your budget is the maximum spend for the discount that will be used for the promotion. The start date must be at least 24 hours from the date you create the promotion.
Review the promotion and click Submit.

After the promotion is approved, it will be visible to the audience you selected. The promotion will apply to your entire brand catalog to be redeemed on any one product per customer. Amazon plans to launch the ability to select specific ASINs in the coming months.

Tailored Promotion Budgeting

Promotions can be a great way to increase sales, but it’s important to budget appropriately. You’ll want to be sure that your tailored promotion budget covers the cost of demand generated by your promotion for the period you select.

You’re most likely to experience overspending during high-traffic events like Prime Day or Black Friday, so you might want to consider not running tailored promotions at those times. This can also happen when your tailored promotion is combined with another promotion, such as a Lightning Deal. Setting a budget that is too low for a high discount can cause your tailored promotions budget to run out too quickly.

You’ll see the following metrics for your tailored promotions:

Sales: product sales generated from the promotion
Spends: total discount in terms of the money attributed toward the promotion
Redemptions: number of times your promotion is redeemed

You can check the status of your tailored promotions from the Brand Tailored promotion page in Seller Central. Here you’ll see if each of your promotions is running, complete, scheduled, canceled, pending activation, or failed.

Engaging with Customers

Amazon sellers have had the option to offer discounts to customers for years, but this feature allows for better targeting, which drives better results. It offers a new way to engage with customers, including repeat buyers, to encourage more purchases. This can help brands save on customer acquisition costs and drive more loyalty. It also offers a way to reward brand followers and thus gain more of a following on Amazon.

Are you using Amazon's Brand Tailored promotions? What's your experience been like so far?