What we saw from Prime Day
A majority of customers had a lower ROAS around Prime Day compared to the week before, which aligns with the fact that nearly all customers spent more; this aligns with our rule of thumb that higher spend is inversely correlated with a lower ROAS.
One pricing insight that we identified was that products with the smallest impact on ROAS around Prime Day were those that were priced between $20 and $50.
An insight on ad spend we found was that, unsurprisingly, customers who increased their ad spend generated higher sales. The sweet spot for Prime Day was to increase ad spend by anywhere from 50% to 150%.
One of Mayan’s customers provided the perfect A/B test in that they did not leverage a discount in 2021, but they did offer a 20-25% discount in 2022 for their Prime-eligible products. Compared to the previous week of Prime Day 2021 when no discount was used, sales only increased by 1% and 3% during the two days of Prime Day. However, in 2022 when a discount was shared for consumers, the sales growth was instead 277% and 206% for the two Prime Days. Out of all customers that had a triple-digit increase in sales growth around Prime Day, only one did not give a discount to consumers.
In Conclusion
What this says about the optimal strategy around the upcoming Prime Day, Black Friday, Cyber Monday, and the holidays:
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