Email Trumps Social For Customer Lifetime Value In Digital Marketing

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New research has claimed email is more successful than social media as part of a digital marketing strategy, at least when it comes to maintaining high value customers.

The study from Custora also revealed customer acquisition by email had actually quadrupled over the last four years, with many retailers collating email addresses and then converting members to actual paid customers.

However, the research also showed SEO and PPC are still the most important aspects of any digital marketing strategy. In particular, organic search continues to play a significant part in customer acquisition, with figures showing it accounted for more than 15% of customers acquired.  Customer acquisition from Cost Per Click (CPC) stood at 10%.

In terms of Customer Lifetime Value (CLV), the future profit a firm can expect to earn from a customer throughout the lifetime of his or her relationship with the business,  the study also revealed the highest level of high-value customers, typically arrived from organic search - with a figure 54% higher than average. CPC was second at 37% higher than average.

However, the big surprise was the CLV of customers on Twitter was actually 23% lower than average. Facebook on the other hand, typically has a CLV of one per cent.

The research was conducted in order to look more closely at the 'rapidly changing landscape' of customer acquisition. It is also the first time Custora has published its E-Commerce Customer Acquisition Snapshot.

Custora is a predictive analytic platform designed to assist e-commerce marketing customers, specifically those deemed as high value customers.

Its findings have been calculated from the data of more than 70 million customers from 86 U.S retailers across a range of industries.

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