The ROI from marketing to existing customers

White Paper Published By: Adobe
Adobe
Published:  Nov 21, 2012
Type:  White Paper
Length:  12 pages

Digital marketers intuitively recognize that existing customers are more valuable than new ones, but they too frequently fail to prioritize marketing programs designed to bring them back.

The latest Adobe Digital Index Report quantifies the value of greater marketing focus to existing customers by breaking site visitors into three categories: shoppers, returning purchasers and repeat purchasers.

Findings from the report are based on analysis of anonymous data from 33 billion visits from 180 online retail websites in the US and Europe -and include:

  • In Europe, near 40% of revenue comes from returning or repeat purchasers, who represent only 10% of all visitors.
  • Marketers in the United States and Europe must bring in 5 and 7 shoppers, respectively, to equal the revenue of 1 repeat purchaser.
  • Conversion rates in purchaser segments are up to 9 times those of shoppers.
Returning and repeat purchasers generate a disproportionately large share of revenue for online retailers. Retailers can achieve tremendous revenue gains by shifting their marketing budgets to better target these customer segments.




Tags : 
adobe, existing customers, marketing, adobe digital index report, customer segments, roi, return on investment, business technology