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

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.