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.
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