Public Relations & Social Marketing Insight

It is true? Myth or reality? Well extensive research and customer surveys have produced mind boggling evidence that online stores actually work as an essential counterpart for boosting in-store sales of many businesses which have online representation.

Consumers interested in purchasing products often get sidelined with alternatives and comparable products online with good product presentation and conclusively, refuse to buy the product. However, the same customer is rejuvenated after seeing the product in reality while walking in a local store. The result is offline purchase!...

How much is your customer worth?

One approach would be to re-focus acquisition strategy based on the Customer Lifetime Value or CLV. According to the 2015 RJ Metrics Benchmark report, a new e-commerce customer is worth, on average, $154 in their first year. This number varies by type of retail. For instance, the categories of housewares, food and drugs tend to be above this average.

What is more interesting is that only 32 percent of these new customers are likely to make a second purchase in their first year. The report also reveals that the top 1 percent of customers are worth 18 times more than the average customer, which equals about $2,772.

Armed with this information, an e-tailer can easily calculate ROI on programs targeting new customers vs. programs targeting your biggest fans—the top 5 percent....