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BizReport : Ecommerce archives : April 13, 2016

Study: New vs. Returning - Which customer is stronger

There is a lot to be said for the returning customer. Returning customers show loyalty by coming back to a store to shop, returning shoppers spend more because of all those visits, and returning shoppers may tell friends about their experiences. But, don't count out new shoppers.

by Kristina Knight

Monetate has launched new data comparing new versus returning shoppers to determine which may hold more importance for retailers. Their findings, based on the 2015 holiday season, show returning shoppers spending more than $5 billion online while new shoppers spent less than $3 billion. Return visitors are more likely to add more items to their cart, but do these things mean retailers need to focus only on customer retention?

"Every business needs to balance acquisition and retention costs. This struggle for balance leaves many marketers asking, 'Where do I focus my efforts so they make the most impact?'" said Lucinda Duncalfe, CEO, Monetate. "Of all the questions, the most critical to answer is, 'Do I invest time and money acquiring new customers, or do I focus on retaining the customers I already have and personalize their experiences? At Monetate, we ask, 'Why Choose?'"

Some interesting takeaways from the Monetate report include:

• Overall, the bounce rate of the 2015 holidays increased to 30%
• Mobile bounce rates were higher than desktop
• Conversion rates averaged 3.5%, a slight increase
• New visitor conversions averaged 2.5%

"Customer retention and customer acquisition don't have to be two parallel lines that never meet," said Duncalfe. "With Monetate, our customers are able to improve conversion rates, engagement, acquisition and retention by personalizing every experience along a customer's journey."

Tags: customer acquisition, customer retention, ecommerce, ecommerce trends, Monetate

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