You hear a lot about lifecycle marketing and the importance of marketing to existing customers. There are lots of facts and data points out there in the universe, so we put together this lifecycle marketing infographic to help you get a singular view of what's happening and how lifecycle marketing can play a part in growing your business.
Let's quickly walk through this infographic.
According to the Adobe Loyal Shoppers Report, 8% of your site visitors are return customers, the other 92% are new visitors. This 8% is responsible for 41% of the revenue you see come in via your website. This points out two important things:
- Return customers are valuable - with such a disproportionately large amount of revenue coming from such a small subset of your visitors, it's imperative to market to your existing customers and make sure they're feeling the love. Equally as important is creating a fantastic welcome series or post purchase thank you to turn subscribers into customers and new customers into repeat buyers.
- 360 Degree Profiles are Key - with 92% of site visitors being new customers, it's important for you to truly understand what each customer is interested in. Onsite tracking is a great way to build out a 360 degree profile of your new customers, as well as allows you to trigger browse abandonment emails based on categories or products viewed or searched.
Harvard Business Review states, "depending on which study you believe, and what industry you're in, acquiring a new customer is anywhere form five to 25 times more expensive than retaining an existing one." That's a pretty big difference, in the retail industry you normally see this statistic around 5-7 times more to acquire a new customer. In general, when retailers spend money marketing to existing customers they see 2.5 times the ROI then when they focus funds on new customers.
These numbers are pretty compelling. Now, this doesn't mean you throw acquisition out the window, acquisition is still necessary; however, it's important to have tools and strategies in place to take new site visitors and at least turn them into subscribers. For more information on how simply capturing an email address (lightboxes are great for this) in conjunction with retention marketing can be a game changer, check out this article.
So what happens when retailers dig in and implement predictive lifecycle and retention marketing campaigns? Our clients on average see a 20% increase in Customer Lifetime Value and Average Order Value, a 17% lift in retention rates over a 12 month period, and an average 10x ROI in 12 months.
Interested in learning more? Request a demo to get started today.