E‑Retailers Using More Organic Search and Referrals to Acquire High-​Value Customers

Online retailers are spending a lot of money to acquire customers through various digital channels. As new formats become available, they may become more onlineshopperefficient at turning consumers into customers. Custora has recently looked at how e‑retailers obtain customers as well as the relative value of customers acquired through each channel.

This year, these marketers are acquiring most of their customers through organic search (15.81%), cost per click (9.82%), referral (6.84%) and email (6.85%). Custora analysts believe that retailers are using more third-​party services to help them attract customers so the email and affiliate channels are increasing in importance.  These analysts also took a look at which channels are bringing higher-​value customers to retail sites. Not surprisingly, cost-​per-​click, organic search and referral perform well here. Twitter was the measured channel with the lowest customer value and analysts attributed this finding to the heavy discounts that are promoted through the popular social site.

For many e‑retailers, the marketplace has become the entire nation. However, consumers in some places are more likely to shop online. This is especially true of rural areas. For example, online shoppers in Wyoming have a 28% higher than average lifetime customer value to e‑retailers. This number is based on all retail categories. The analysis makes sense when looked at through the lens of overall shopping opportunities for rural consumers.  Customer lifetime value percentages can change significantly depending on the product category, though. This analysis revealed that fashion brands do best in New York and California, likely because they appeal to younger, tech-​savvy consumers.

To learn more about search engine marketing responders, check out the AudienceSCAN report available on the Research Store at ad​-ology​.com.

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.