Latino-owned coffee company had their expectations surpassed

Introduction

Mayorga Organics were no newbies to Amazon; the Latino-owned company has been making sales on amazon for years. Their business was thriving and as successful as they felt it could be, but it was not enough, as we would see. Mayorga is a specialty coffee firm that works directly with small farmers across Latin America who specialize in cultivating organic, specialty-grade coffees.

The problem began when the President and COO, Erin Dall, realized their small team, who handled all the tasks of doing their coffee roasting and packing; found it challenging to devote time to their Amazon channel, let alone learn the nuances – they lacked an internal creative or Amazon technical team to build new content, resolve Amazon issues, or push their ads to the next level.

LAB 916 OBJECTIVES AND METRICS

Lab 916 informed Mayorga Organics of their objectives, which included fixing the issues with brand-name nodes, building a quality storefront, creating images and graphics, writing compelling copy and A+ for all current products, and finally outperforming advertising performance for the same time frame in the previous year.

The Amazon key performance indicators (KPIs) Lab 916 used to track the performance of the campaign includes; Number of Ad Impressions, Number of Clicks, Click-throughs (CTR), Detail page views (DPV), Detail page view rate (DPVR), Branded search impressions, Ad spend e.t.c.

The primary metric to compare the campaign’s success to the amazon KPIs was the number of retail-ready ASINs. That would mean that those products had been properly optimized, containing a correct brand name, optimized images, and copy, A+ Sessions increase, and an increase in average selling price to perform well on Amazon.

The Challenge and Approach

Lab 916’s primary challenge was helping Mayorga with an already existing mode of selling make a significant behavioral shift on how to sell and expand on Amazon.

Their approach was first to ensure that all their choices and ideas were based on facts, Lab 916 maximized various internal reports and modeling tools and also conducted interviews and surveys with Mayorga organics and its various departments to understand its needs and capabilities for their systems and processes to work well.

Once they evaluated all the variables in their systems, they devised an agile plan of attack with various options for course correcting depending on the data they got back.

All product and brand materials were redone by the Lab 916 creative team; this iterative approach included assessing the market and competitors and communicating back and forth with the Mayorga Organics for final approval; Lab 916 wanted to ensure that the client felt engaged in their brand-building process.

To address the technical catalog issues preventing variations from being made and storefront browse nodes from being correctly linked to the ASINS – Lab 916 technical team opened cases with seller catalog support and brand registry support.

A combination of SP, SB, and SD advertising was used in the 14 new campaigns that were developed in addition to taking over the existing campaigns of Mayorga. Bestsellers and products on the exact variant page were transferred into their campaigns to better manage the money. Due to other products in the campaigns and ad groups consuming most of the budget, low sellers and less well-liked products did not receive impressions. Sales increased while reporting and data were structured, thanks to improved structuring and bid optimizations.

HOW AMAZON ADS WAS LEVERAGED IN THE PROCESS

The Amazon Ads suite offered limitless flexibility to meet the requirements needed for Lab 916 to run a successful campaign. For the advertising to be correctly managed, run, and expanded, factors like the data from business reports, brand analytics reports, the general marketplace, third-party tools (helium 10), the products’ retail readiness, the actual business/situation client’s (current stock levels, capabilities, max volume, etc.) were taken into consideration to know which levers to pull and when.

Specific Amazon ads were leveraged significantly by Lab 916, ads such as; Sponsored Products, Sponsored Brands (including Sponsored Brand Video), Sponsored Display. Other tools include A+, coupons, promotions, prime exclusive deals, coupons, sales prices, and virtual bundles.

SP advertising also gave Lab 916 the ability to track customers’ product-related search terms and deliver insightful information about new product offers. For users to visit the storefront, SB advertising was essential. SD advertisements allowed us to engage with new and relevant audiences to keep their products in the forefront of customers’ minds, increase the number of repeat customers, raise subscriptions, and save purchases.

THE DATA RESULT

The comparison period of this result is Jan 2021 – Apr 2021. VS Jan 2022 – Apr 2022 

Advertising:

  • Ad Spend:
    $4,208.46 → $42,507.66 [+910.05%]

    Ad Sales:
    $26,266.24 → $171,126.92 [+551.51%]

    Ad Clicks:
    3,286 → 23,029 [+600.82%]

    Ad Orders:
    1,099 → 6,031 [+448.77%]

Performance

  • Sessions: 80,952 → 99,692 [+23.15%] 
  • Average Sale per unit: $22.64 → $27.27 [+20.44%]
  • Subscribe and Save: 5342 →6642 [+24.34%] 
  • Grew sales on new Kcup pod products Branding 
  • Optimize 10 ASINs with new copy, images, and A+
  • Optimize new storefront with content (copy, images, videos, multiple pages) 
  • Resolve all Brand Registry errors Logistics
  • Resolved barcode labeling with a brand that was causing inbound performance problems – Made sales plan while best sellers were out of stock.

INSIGHTS FROM RESULTS

Mayorga as a brand knows how to find and roast coffee beans that customers enjoy, however, they lack the staff, resources, time, or experience to go into their Amazon accounts and figure out what to do next.
Mayorga kept their account on “auto-pilot,” While it appeared steady, doing so for an extended period led to problems that persisted and negatively affected the account’s performance. Mayorga could not maximize income due to issues with their supply chain and could not continuously keep their most excellent sellers active. They also engaged a third company to manage their advertisements; they were continually uneasy because they had no idea how to manage them. Lab 916 carried out the execution and ensured to teach the sellers a little about Amazon every day.

CONCLUSION

Ellen Dall, who decided to try Lab 916 for a few months and see the results, had her expectations surpassed and still maximizes the expertise of Lab 916. Clients have learned that Amazon isn’t “being cruel to them and their account” and it is just a vast and complex platform that requires an experienced system and team to manage.