Acquisition or retention?
Posted: Tue Feb 18, 2025 4:22 am
Find out what type of e-commerce you are.
Digital strategies
Establishing how to invest the marketing budget of an e-commerce is never a simple thing. All the levers are fundamental: on the one hand, it is important to acquire new users, to increase the audience to work on, to expand its market, to differentiate customers. On the other hand, for many e-commerce sites, the Pareto law still applies: This represents only 20% of loyal users, which most of the time generates most of the revenue. After all, as we see in the table below published by Econsultancy in the quadrennial report on cross-channel marketing, the subject is anything but trivial.
E-commerce User Acquisition and Retention
Out of 400 online retailers, at least 40% say they are more focused on acquisition bahrain cell phone number list and only 15% on retention. Interestingly, in 2014, the share of those who say they are interested in both has increased. The shift in focus between acquisition and retention often depends on the product lifecycle. It goes without saying that those who sell products with a very long lifecycle often work more on acquisition, at least in the early stages, because retention is only profitable in the medium and long term. Sometimes it takes years to measure customer loyalty. There are several models based on frequent replenishment. Measuring CLV is one of the first keys to determining which model you want to bet on ( if you don't know how to do it, let's talk about it here). The probability of replenishment, in fact, is the basis of some definitions between acquisition-biased, hybrid or retention-oriented e-commerce models.
What type of e-commerce are you? According to a definition reported in the book Lean Analytics by Alistair Croll and Benjamin Yoskovitz , in order to guide a marketing strategy, it is essential to establish the type of relationship you intend to establish with your customers. To do this, the authors propose calculating an annual repurchase rate , a metric based on the following question "what percentage of my customers from last year will buy again on my site within 12 months?". Again, this is a calculation "philosophically" not far from the Customer Lifetime Value (which we discussed in this article). Projecting the probability of repurchase of the same user on your e-commerce site allows you to classify your model according to different types.
Digital strategies
Establishing how to invest the marketing budget of an e-commerce is never a simple thing. All the levers are fundamental: on the one hand, it is important to acquire new users, to increase the audience to work on, to expand its market, to differentiate customers. On the other hand, for many e-commerce sites, the Pareto law still applies: This represents only 20% of loyal users, which most of the time generates most of the revenue. After all, as we see in the table below published by Econsultancy in the quadrennial report on cross-channel marketing, the subject is anything but trivial.
E-commerce User Acquisition and Retention
Out of 400 online retailers, at least 40% say they are more focused on acquisition bahrain cell phone number list and only 15% on retention. Interestingly, in 2014, the share of those who say they are interested in both has increased. The shift in focus between acquisition and retention often depends on the product lifecycle. It goes without saying that those who sell products with a very long lifecycle often work more on acquisition, at least in the early stages, because retention is only profitable in the medium and long term. Sometimes it takes years to measure customer loyalty. There are several models based on frequent replenishment. Measuring CLV is one of the first keys to determining which model you want to bet on ( if you don't know how to do it, let's talk about it here). The probability of replenishment, in fact, is the basis of some definitions between acquisition-biased, hybrid or retention-oriented e-commerce models.
What type of e-commerce are you? According to a definition reported in the book Lean Analytics by Alistair Croll and Benjamin Yoskovitz , in order to guide a marketing strategy, it is essential to establish the type of relationship you intend to establish with your customers. To do this, the authors propose calculating an annual repurchase rate , a metric based on the following question "what percentage of my customers from last year will buy again on my site within 12 months?". Again, this is a calculation "philosophically" not far from the Customer Lifetime Value (which we discussed in this article). Projecting the probability of repurchase of the same user on your e-commerce site allows you to classify your model according to different types.