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17 september 2012, 14:47

The value of existing customers

In the US and Europe, 40% of revenue for online retailers comes from returning or repeat purchasers, who represent only 8% of all visitors, according to Adobe's Digital Index report.

Marketers in the US and Europe must bring in five and seven shoppers respectively, to equal the revenue of one repeat purchaser.

Most of the revenue improvement in purchaser segments can be attributed to increased conversion rates which are up to nine times those of shoppers.

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Existing customers carry retailers through thick and thin.

Online retailers spend nearly 80% of their digital marketing budgets acquiring shoppers (new visitors), but does this focus make sense? To find out, Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012. Our data indicates retailers should shift spend to returning and repeat purchasers, two existing customer segments that drive a disproportionately high share of revenue, exhibit higher conversion rates, and really step up in the Christmas holiday season and tough economic times. Migrating just 1% of shoppers to returning purchasers could generate as much as $39 million in additional revenue per retailer.


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Download The ROI from Marketing to Existing Online Customers to learn:

Why returning and repeat purchasers are much more valuable than shoppers

How each segment performs against critical eCommerce metrics

The two levers retailers can pull to increase revenue from these visitor segments

Danny Oosterveer
Data-gedreven digital marketeer bij Datasexual

Data-gedreven digital marketeer. Resident bij Amdax en Woonduurzaam. Daarnaast vertel ik vaak als spreker over data-gedreven marketing. Auteur van het boek Data-bedreven marketing. Eén van de twee Groene Nerds.


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