They always say it is easier to generate business from existing customers rather than fighting for new ones. Ensuring repeat visits and repeat spend is vital to ensuring growth.
I have noticed through experiencing retail marketing myself over the last 12 months that there has been an increased focus on vouchers, exclusive offers and priority access, certainly with the supermarkets and clothing retailers.
A new study by IMRG and Capgemini has revealed that online retailers are prioritising retaining customers over acquiring new ones. The retention rate for active consumers reached a record high in the period from May to July, peaking at 36.5 per cent, an increase of five per cent on the previous year. This quarter represents a record high for customers returning to sites to make a purchase, but also shows a record low for first time consumers making purchases. These unprecedented figures may be due to the costs of retaining customers being significantly less than fishing for new ones. Creating effective Google search terms is generally an expensive process, but one that is vital in gaining new fresh customers.