How much should you spend to acquire new customers?
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IMRG reveal industry customer acquisition rates, how long customers should be staying with you, and if you’re spending too much to acquire new customers. This session uses IMRG’s unique market datasets and is designed for retailers who want to learn and achieve industry best practices.
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Customer Mix Matters: In 2022, almost 50% of orders originated from new customers. However, existing customers exhibited higher order frequency and spent more per order, underlining the significance of a balanced customer mix.
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Email Marketing Resilience: Active customer email opt-in rates averaged at 46%, with low unsubscribe rates (1-2%), even for retailers with frequent email communications. This indicates the enduring effectiveness of email marketing for customer engagement.
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Customer Lifetime: On average, customers stayed with a retailer for approximately 3 years. Clothing retailers enjoyed slightly longer customer lifetimes compared to those in the health and beauty sector.
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Cost Considerations: Customer acquisition costs increased across channels in 2022, with social and display advertising being pricier than search and affiliate marketing. Retailers should strategically allocate resources to maximise ROI.
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Repeat Purchases: The lifetime value to order value ratio revealed that customers make just under 5 repeat purchases on average. This emphasises the importance of fostering customer loyalty for sustained business growth.
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Benchmarking for Success: Retailers can leverage benchmarking data to compare their metrics against industry averages. This enables informed decision-making and adjustments to strategies for achieving and maintaining best practices.
In a dynamic eCommerce landscape, understanding these insights can empower retailers to make data-driven decisions, optimise customer acquisition costs, and enhance overall customer lifetime value.
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