Are you maximizing the revenue potential from your existing customers?
Very often online retailers are so focused on gaining new customers that they fail to maximize the revenue potential from their existing customers.
Is this a mistake on their part?
Yes, and a big one. Research shows that:
The cost of acquiring a new customer is 6-7 times greater than getting repeat sales from an existing customer.
The probability of selling to an existing customer is 60 - 70%. The probability of selling to a new prospect is 5-20% (Marketing Metrics)
A 5% increase in returning sales can increase profits by 5 - 95% (Bain & Company)
So, why do small retailers end up neglecting their existing customers?
Maximizing revenue potential from existing customers requires expertise, time, resources, and ongoing attention. Unlike large retailers, small online stores usually don’t have the time, expertise or resources to manage their marketing activities towards existing customers. In fact, a recent research shows that only 2.5% of all emails are triggered or automated based on customer actions and preferences.
Automation of e-commerce remarketing activities towards existing customers
Remarkety helps retailers maximize revenue potential from existing customers by automating marketing activities based on the customers’ purchase history and best practices from thousands of other retailers.
You don’t need time, because it is completely automatic.
You don’t need to be an expert, because remarkety leverages best practices and the shared experience of thousands of other retailers.
Is this effective? Will customers really respond to this?
Yes they will.
According to research
Triggered emails, which are messages that are sent upon user-triggered actions, saw an average CTR of 10.4%, more than double the general CTR for Q1 2012.
Marketers who take advantage of automation - which includes everything from cart abandonment programs to birthday emails - have seen conversion rates as high as 50%.