Retail Marketers – Time to Bring Your Customers Back

The @AdobeUK Team

September 12, 2012

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Findings from our latest Digital Index Report, The ROI from Marketing to Existing Online Customers, show that it takes seven first-time online shoppers to deliver the same revenue per visit as just one repeat purchaser.

Existing customers provide greater ROI for retailers. So, why are the bulk (80%) of interactive marketing budgets spent on trying to attract new shoppers?  Surely the number one priority should be existing customers?

The financial rewards for marketing to return and repeat customers are significant.  It is estimated that for every 1% of shoppers who return for another visit, overall revenue will increase by 10%.  The impact of this is obvious and incredible.  Based on the sample used for our study, in both Europe and the US, on average, 40% of revenue comes from returning or repeat customers, who represent only 8% of all visitors.

This is magnified even further during Christmas, with the increase from repeat purchasers being a massive 23% – nearly 500% higher!

As well as Christmas, repeat purchasers also deliver greater returns during slow economic growth.  With the Eurozone issues over the past few years, where overall GPD growth in Europe has been either weak or negative, repeat purchasers have become even more important to the bottom line.

So how can your brand benefit from this information and turn shoppers into return and repeat purchasers?

1.     Firstly, conversion rates need to be considered as this is the main driver for higher return per visit.  The conversion rate for first time shoppers is just 1%, whereas for returning and repeat customers it’s five and nine times as much, respectively.  Marketers need to optimise site conversion rates across the board to bring customers back to the site.

2.     Secondly, you need to look at better targeting customers; personalisation is key! Companies that personalise the experience increase the likelihood of both sales and recommendations.  A pretty obvious statement, but many marketers are not taking advantage of all the customer data they have on existing customers, that makes personalisation possible.

3.     Lastly, offering rewards, loyalty programme promotions and using tactics such as email and display ad retargeting, are all great ways to encourage return visits and bring those sales figures up.

If you’re going to give one piece of advice to your colleagues across the marketing department as you gear up for Christmas, make sure you prioritise the present list according to ROI.

For a more detailed look at how Europe compares against the US, click on our infographic below and see a copy of the full Digital Index Report here.

Jamie Brighton, Product Marketing Manager, Digital Marketing Business, Adobe



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