The Most Valuable Customer: Existing or New?
Is it better to focus on acquiring new customers or retaining old ones?
Optimove has published some interesting research recently which indicates that during the holidays, repeat customers are a much stronger asset for e-tailers than new customers who made their first purchase during the season.
According to the study, both the transaction amounts and the number of items are higher for repeat customers during the holidays compared to new customers. Repeat customers’ transaction amounts, in fact, came in 30 percent higher, while the number of items purchased was 40 percent higher.