Digital marketers intuitively recognize that existing customers are more valuable than new ones, but they too frequently fail to prioritize marketing programs designed to bring them back.
The latest Adobe Digital Index Report quantifies the value of greater marketing focus to existing customers by breaking site visitors into three categories: shoppers, returning purchasers and repeat purchasers.
Findings from the report are based on analysis of anonymous data from 33 billion visits from 180 online retail websites in the US and Europe -and include:
In Europe, near 40% of revenue comes from returning or repeat purchasers, who represent only 10% of all visitors.
Marketers in the United States and Europe must bring in 5 and 7 shoppers, respectively, to equal the revenue of 1 repeat purchaser.
Conversion rates in purchaser segments are up to 9 times those of shoppers.
Returning and repeat purchasers generate a disproportionately large share of revenue for online retailers. Retailers can achieve tremendous revenue gains by shifting their marketing budgets to better target these customer segments.
DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Our portfolio of live events, online and print publishing, business intelligence and professional development brands are centred on the complexities of technology convergence. Operating in 42 different countries, we have developed a unique global knowledge and networking platform, which is trusted by over 30,000 ICT, engineering and technology professionals.
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