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RJMetrics: Trad-Shoppers spending more
When it comes to shopping, even online shopping, consumers are spending more at traditional retailers, both offline and online, finds new data from RJMetrics. The data also finds Facebook ads are performing better than Google ads when it comes to consumer spend.
The 'lifetime value' of a shopper engaged through Facebook ads is 30% higher than those engaged through Google ads, finds RJMetrics. And while shopping with traditional retailers, shoppers spend an average of $105 (online or offline) while shoppers engaged through Daily Deal sites spend an average of $61 and shoppers using Group Buying sites spend about $82.
The big difference, it seems, is that shoppers using traditional retailers make purchases less often, however, since they buy more each visit traditional retailers still win. Here's the break-down:
• Daily Deals shoppers return to stores every 48 days (average)
• Group Buyer shoppers return every 52 days (average)
• Traditional Store shoppers return every 89 days (average)
So even though daily deal shoppers are visiting/buying more often, traditional retailers still win - because every purchase made is nearly double that of a shopper in a non-traditional space.
When it comes to Lifetime Value, however, daily deal and group buying sites are getting strong traction. The lifetime value of a Flash Sale consumer shows 385% growth over that first purchase, for example, compared to a 94% Lifetime Value growth rate for traditional retail shoppers.
Even for traditional retailers, this report indicates flash sales, daily deals and other 'deal' offerings can be an impetus for shoppers over the lifetime shopping cycle.
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