PHILADELPHIA, May 29, 2015 /PRNewswire/ -- New data released today by RJMetrics, a complete analytics platform for ecommerce, SaaS, and mobile businesses, digs into the behavior of the ecommerce customer. The biggest finding: while many retailers tout the benefits of customer retention, most customers never purchase a second time. Only 32% of customers purchase again within a year of their first purchase.
These results paint a picture of a very cutthroat industry, where retailers are constantly in the process of getting in front of new customers, and then dealing with them on a very transactional basis. This is contrary to the prevailing narrative within the industry, which tends to emphasize customer relationships and building strong brand advocates. In reality, most ecommerce companies struggle to get their customers back in the door.
But the report surfaced another finding: in spite of these challenges, the most successful ecommerce companies are building longer-term customer relationships. Top quartile companies (ranked by growth rate) have customer lifetime values that are 79% higher than their less successful peers.
The report offers two suggestions on how companies can replicate the success of top performers:
- First, focus retention efforts on high-value customers. The report found that the top 1% of customers are 18x more valuable than the average customer. Remarketing to these customers to get them back in the door has the potential to yield phenomenal ROI.
- Second, use data to predict who these high-value customers will be. Data from the report shows that top quartile customers spend nearly 6x more than average customers in their first 30 days. This, combined with internal data on things like product categories purchased, acquisition source, or days between order can help retailers build simple prediction models to identify who has the potential to become a loyal customer.
"While retailers love talking about building brands that customers love, there are very few companies doing that successfully," said RJMetrics CEO, Robert J. Moore. "If you're one of the few retailers who has figured out how to keep your customers coming back you're on the path to something very big."
All this data, and more, can be found in the 2015 Ecommerce Buyer Behavior Benchmark.
RJMetrics is the analytics platform of choice for many of the fastest-growing online businesses in the world, including NoMoreRack, Hootsuite, Walker & Company Brands, and more. It provides business users with an easy-to-use, cloud-based solution to drive growth through smarter decision-making. For more information on RJMetrics, visit their website.