Acquiring and Keeping Online Customers
The widely reported 17% increase in 2008 online sales will be driven, to some extent, by the right kinds of marketing. How are online retailers spending their marketing budgets? A recent report by Shop.org indicates that retailers are allocating some of their budgets as follows:
- Customer acquisition 53%
- Customer retention 21%
The top methods used to acquire new customers include:
- Paid search 35%
- Organic (free) search 18%
- Affiliate programs 7%
- Email marketing 7%
The top method used to generate sales from existing customers is email.
What media mix have you been recommending to your online clients?
Direct Magazine release, April 2008