Blog Post:Why do we spend so much of our advertising budgets on acquisition rather than wooing our existing customers? Marketing budgets are biased towards acquisition. The well-established knowledge of the superior value of existing customers sits in the back of our minds while we allocate large chunks of budget to new customers.
Research has shown that, within Europe, it takes 7 new customers to equal the revenue of 1 repeat shopper.
Equal revenue: 7 new customers to 1 repeat customer. Research can’t tell us why marketers are spending so much on new customers, but it can provide a compelling case for why this is not the right direction for retail marketing. While the majority of people visiting your site are new shoppers they are also the most likely to leave without buying. Your repeat customers may only be 10% of your website visitors, but they are more likely to complete a purchase.
Some of the best ways to reach your existing customers are not through display and search ads – they already know where to find you – but through social media and customised email marketing.
The inclusion of social media in your marketing plans also helps bring existing customers back for more. If they already know and like your brand, they are more likely to follow you on Twitter or like you on Facebook too. Special ‘social only’ offers for your fans will keep their attention on social media and help you keep their custom. So be sure to add your social channels to your website, emails and display ads. A great example of customised email marketing is Amazon. Amazon tracks user journeys, product views, wish lists and incomplete shopping carts to generate customised emails for their existing customers. Why does this work? Customers are seeing personalised emails geared towards their purchase habits; they see updated pricing for products they've added to wish lists and even stock updates for items in their basket. These reminders are no doubt helping Amazon harvest what could have been lost income due to customer forgetfulness. Amazon markets directly to existing customers via email Let’s break old habits and keep existing customers keen with targeted, personalised campaigns. We’re working in an era of “prove it” or lose it, so if you need some data to back up your repeat customer pitch, check out our recent Adobe Digital Index Report: The ROI from Marketing to Existing Online Customers.
Author: Date Created:12 April 2013 Date Published: Headline:It’s not just about the new: don’t forget your existing customers Social Counts: Keywords: Publisher:Adobe Image:http://blogs.adobe.com/digitaleurope/files/2013/04/75.png

Why do we spend so much of our adver­tis­ing bud­gets on acqui­si­tion rather than woo­ing our exist­ing customers?

Mar­ket­ing bud­gets are biased towards acqui­si­tion. The well-established knowl­edge of the supe­rior value of exist­ing cus­tomers sits in the back of our minds while we allo­cate large chunks of bud­get to new customers.

Research has shown that, within Europe, it takes 7 new cus­tomers to equal the rev­enue of 1 repeat shopper.

Equal revenue: 7 new customers to 1 repeat customer.

Research can’t tell us why mar­keters are spend­ing so much on new cus­tomers, but it can pro­vide a com­pelling case for why this is not the right direc­tion for retail marketing.

While the major­ity of peo­ple vis­it­ing your site are new shop­pers they are also the most likely to leave with­out buy­ing. Your repeat cus­tomers may only be 10% of your web­site vis­i­tors, but they are more likely to com­plete a purchase.

Some of the best ways to reach your exist­ing cus­tomers are not through dis­play and search ads – they already know where to find you – but through social media and cus­tomised email marketing.

The inclu­sion of social media in your mar­ket­ing plans also helps bring exist­ing cus­tomers back for more. If they already know and like your brand, they are more likely to fol­low you on Twit­ter or like you on Face­book too. Spe­cial ‘social only’ offers for your fans will keep their atten­tion on social media and help you keep their cus­tom. So be sure to add your social chan­nels to your web­site, emails and dis­play ads.

A great exam­ple of cus­tomised email mar­ket­ing is Ama­zon. Ama­zon tracks user jour­neys, prod­uct views, wish lists and incom­plete shop­ping carts to gen­er­ate cus­tomised emails for their exist­ing customers.

Why does this work? Cus­tomers are see­ing per­son­alised emails geared towards their pur­chase habits; they see updated pric­ing for prod­ucts they’ve added to wish lists and even stock updates for items in their bas­ket. These reminders are no doubt help­ing Ama­zon har­vest what could have been lost income due to cus­tomer forgetfulness.

Amazon markets directly to existing customers via email

Let’s break old habits and keep exist­ing cus­tomers keen with tar­geted, per­son­alised cam­paigns. We’re work­ing in an era of “prove it” or lose it, so if you need some data to back up your repeat cus­tomer pitch, check out our recent Adobe Dig­i­tal Index Report: The ROI from Mar­ket­ing to Exist­ing Online Cus­tomers.