The Funnel: A Step-by-Step Guide to Increasing LTV

Step 1: Main Targeting Phase –Acquisition ADS

✅ Objective: Drive awareness and acquire new customers

🔥 The Strategy:

• Use targeted ads (Sponsored Products, Sponsored Brands, and Display Ads)
• Focus on high-intent keywords that match your ideal customer’s search behavior
• Run retargeting campaigns using look-back window ads to recapture interested visitors

📌 Why This Works:

✔️ You build a pool of first-time customers ready to move into the next funnel stage

✔️ Brand visibility increases, making customers more likely to trust and buy from you

🛠 Action Steps:

✅ Launch Amazon Sponsored Ads + Retargeting Display Ads

✅ Target new customers using interest-based & behavioral data

✅ Use Amazon Brand Analytics to refine targeting

Ad Type

• Goal
• Action
• Sponsored Products
• Acquire new customers
• Use high-intent keywords & auto campaigns
• Sponsored Brands
• Build brand awareness
• Showcase multiple products
• Display Ads
• Retarget potential buyers
• Use Amazon’s 30-day look-back window

Step 2: Convert First-Time Buyers into Repeat Customers

✅ Objective: Get first-time customers to buy again

🔥 The Strategy:

• Offer Repeat Purchase Coupons (15-20%)
• Push Subscribe & Save (offer 20-25% discount)
• Follow up via Amazon’s email sequences with exclusive second-purchase incentives

📌 Why This Works:

✔️ Customers return faster, increasing purchase frequency

✔️ Subscribe & Save locks in repeat orders, maximizing revenue

🛠 Action Steps:

✅ Create a 15% off repeat purchase coupon

✅ Set up Subscribe & Save with 20-25% off for long-term retention

✅ Use post-purchase follow-up emails with discount reminders

Customer Type

• Discount
• Goal
• First-Time Buyer
• 15% off
• Encourage second purchase
• Repeat Buyer
• 20% off
• Push them toward Subscribe & Save
• Subscribe & Save
• 20-25% off
• Lock in recurring purchases

Step 3: Build Long-term Customer Loyalty

✅ Objective: Increase retention and reduce churn

🔥 The Strategy:

• Educate customers on Subscribe & Save benefits
• Use engaging content and reminders to reinforce the convenience of automatic deliveries
• Monitor your Subscribe & Save Dashboard for drop-offs and re-engagement opportunities

📌 Why This Works:

✔️ Lower customer churn = higher LTV

✔️ Proactive retention strategies keep customers engaged

🛠 Action Steps:

✅ Highlight Subscribe & Save benefits on product pages & ads

✅ Monitor purchase frequency & cancellation rates

✅ Adjust discount offers based on customer retention trends

Metric

Why It Matters

Longevity

Measures how long customers stay subscribed

Purchase Frequency

Tracks how often customers reorder

Cancellation Rate

Helps identify why customers leave

Step 4: Ongoing Monitoring & Adjustments

✅ Objective: Maximize profitability while increasing LTV

🔥 The Strategy:

• Optimize ad spend based on LTV growth
• Adjust coupon pricing to balance acquisition costs & profits
• Use real-time ACOS data to determine whether to scale ad campaigns

📌 Why This Works:

✔️ Higher LTV means you can afford more aggressive ad spend

✔️ Data-driven scaling ensures long-term profitability

🛠 Action Steps:

✅ Track LTV changes over time and adjust ad budgets accordingly

✅ Monitor ACOS and profitability—increase spend when LTV supports it

✅ Scale the best-performing coupon & ad campaigns

• LTV Trend
• ACOS Adjustment
• Scaling Strategy
• LTV Increasing
• Increase ACOS tolerance
• Scale ad spend to acquire more customers
• LTV Stagnant
• Optimize ACOS
• Adjust targeting and coupon offers
• LTV Decreasing
• Lower ACOS target

Focus on retention and Subscribe & Save

Full Funnel Overview

📌 This is your repeat purchase funnel at a glance:

This funnel overview provides a visual representation of the entire customer journey, from acquisition to loyalty. It illustrates how each step in the process contributes to increasing customer lifetime value (LTV) and building a sustainable, profitable business model on Amazon.

Key Benefits of Implementing This Funnel

Increased Customer Acquisition

By using targeted ads and optimizing for high-intent keywords, you’ll attract more potential customers to your products.

Higher Repeat Purchase Rates

Strategic use of coupons and Subscribe & Save incentives encourages customers to make additional purchases, boosting overall revenue.

Improved Customer Loyalty

By focusing on retention strategies and providing value through Subscribe & Save, you’ll build a loyal customer base that continues to purchase over time.

Data-Driven Optimization

Continuous monitoring and adjustment of your strategies based on LTV and ACOS metrics ensure long-term profitability and scalability.

By implementing this funnel, you’ll create a systematic approach to growing your Amazon business, maximizing customer value, and achieving sustainable success in the competitive e-commerce landscape.

Bonus: Take Action Now!

📌 Get the Done-For-You Funnel Template 👉 [Download Here]

📌 Want Expert Help to Optimize Your Funnel?

Discovery Call – PAS Agency

Don’t miss out on these valuable resources to help you implement and optimize your Amazon sales funnel. The Done-For-You Funnel Template provides a ready-to-use framework that you can customize for your specific products and business needs. For those seeking personalized guidance, our expert consultation can help you fine-tune your strategy and maximize your results on Amazon.

Done-For-You Funnel Template

Save time and effort with our pre-built funnel template, designed to help you quickly implement the strategies outlined in this guide.

Expert Consultation

Get personalized advice and optimization strategies tailored to your specific Amazon business from our experienced team of e-commerce professionals.

Take the next step in growing your Amazon business by leveraging these resources and expert support. Your journey to increased customer lifetime value and sustainable growth starts here!

Ruben A.

CEO at PAS