“This study shows how very, very difficult it is to grow a loyal customer base.” – Kevin Hillstrom, President, MineThatData
This report from RJMetrics about ecommerce buyer behavior is chock full of useful tidbits for the ecommerce professional. Interested in data about visitor spend? How about customer lifetime value? The information in this report, expressed through text and chart, is tailored for those interested in understanding what to do with the fact that customers spend more money in the beginning of the relationship and less as time goes on.
The report found that the top one percent of customers are worth 18 times the amount as the other 99 percent. The essential point to be gleaned here is that ecommerce companies need to focus first on maximizing revenue from their top users, and then they need to figure out how to draw more revenue from the rest of their base. This strategy is especially important in light of a growing commoditization of online offerings and the increased adoption of subscription business models.
It makes an excellent case for focusing less on converting as many users as possible in order to increase revenues per visitor (RPV) and more on raising your average customer lifetime value (CLV) by creating long lasting customer relationships. To do this successfully, make sure you understand the critical moments of a subscription lifecycle, and how to capitalize on these times in order to garner the utmost value from your customers.
Read the full report here.