Question: A skincare brand on Amazon has increasing site traffic and new customer sales, but declining customer lifetime value and product ratings. Which metrics would best inform changes to their strategy?
- Site traffic volume and new-to-brand percentage
- Repeat purchase rate and review count
- ROAS and product discovery rates
Explanation
Declining customer lifetime value points to a loyalty issue because customers are not generating enough long-term value after acquisition. Falling product ratings also signal weaker post-purchase satisfaction or customer experience. Metrics tied to repeat buying and customer feedback are the most relevant for diagnosing retention and product experience problems. The strategy should focus on improving post-purchase engagement and satisfaction rather than only increasing traffic or acquisition.
Why the other options are incorrect
Site traffic/new-to-brand reflects acquisition and awareness strength, not declining loyalty or satisfaction.
ROAS/product discovery reflects sales efficiency and discovery, not the core post-purchase issues shown by lower lifetime value and ratings.
Source for verification
https://advertising.amazon.com/library/guides/customer-journey
https://advertising.amazon.com/measurement-analytics/campaign-reporting
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