Deciding how to invest the marketing budget of an e-commerce is never a simple thing. All the levers are fundamental: on the one hand it is important to acquire new users, to increase the audience to work on, extend your market, differentiate your clientele. On the other hand for many e-commerce the Pareto law still applies: it is only 20% of loyal users, who most of the time generate the majority of the turnover. After all, as clearly emerges in the chart below published by Econsultancy in the four-yearly Cross-Channel Marketing Report, the topic is anything but trivial.
ecommerce new user acquisition and retention
Of 400 online retailers, at least 40% say they are more focused on acquisition while only 15% on retention. It is interesting to note that in 2014 the share of those who say list of australia consumer email they are interested in both has increased. The shift in focus between acquisition and retention often depends on the life cycle of the products.
It goes without saying that those who sell products with very long life cycles often work more on acquisition at least in the early stages, because retention only bears fruit in the medium to long term.
Sometimes it takes years to measure a customer's loyalty. There are several models based on frequent reordering. Measuring the CLV is one of the first keys to establishing which model you want to focus on ( if you don't know how to do it, we talk about it here) . The probability of reordering, in fact, is the basis of some definitions between e-commerce models unbalanced on acquisition, hybrid, or oriented towards retention.