"INDIAN CONSUMERS ARE ALWAYS-ON EXPLORERS"

KAPIL SHARMA, Director of Amazon Ads India, unpacks insights from their latest thought paper, outlining how brands can overcome trust barriers

- By Ruhail Amin

Why is new customer acquisition such a critical focus for digital-first brands today?

Our research shows that, on average, 66 per cent of brand revenues come from new customers. In fact, the share of revenue from new customers for brands at growth-stage is almost 10 per cent higher than large leading brands. Early adopters and loyalists help you get started, but to achieve scale, brands need to acquire fresh customers. As per our study, 84 per cent of consumers in India are open to exploring new brands and products. While this is an exciting opportunity for brands, the challenge lies in converting that openness into action that requires a structured full-funnel strategy.

What are some of the key barriers brands face when trying to acquire new customers?

Broadly, there are four challenges that customers face while buying a new brand. First, lack of awareness. They don't know the brand or how it addresses their needs. Second, low understanding because of which customers struggle to see how a brand is better than their current choice. Then due to trust deficit consumers are skeptical about dependence on a new brand. And finally, customers often need a final push or a reminder at the right moment. Successful acquisition strategies solve these challenges systematically with focus on education, building connect and driving action.

The paper mentions two distinct customer cohorts. Could you elaborate on these?