Predictive analytics firm Custora just released a study confirming what we’re already seeing here at eWayDirect: that, looking at customer acquisition, email marketing continues to be following an upward trend, quadrupling in the past four years alone.
It’s certainly consistent with what we’re seeing. Email marketing is working to acquire and retain the best customers, those offering the best lifetime value.
“Email marketing has been a growing trend in e-commerce, with an increasing number of retailers building communities and collecting email addresses, then converting those ‘members’ into customers,” it says. “Organic search continues to grow as a reliable channel, (accounting for nearly 16% of customers acquired) reinforcing efforts to complement products with relevant and informative editorial content along with investing in search engine marketing.”
Here’s where email stacks up compared to other channels for customer lifetime value, according to the report:
It’s interesting to note the downward trend for social media, which has been at the center of many online marketers’ strategies. Indeed, one of the report’s key findings is that while customer acquisition via email has quadrupled over the last four years, the lifetime value of customers acquired through Twitter is 23% lower than average.
With organic search, CPC, and email all showing such robust growth, it’s clear where marketing resources should be going.
“The last few years have spawned massive changes in the world of online marketing. With U.S. e-commerce sales now topping $200 billion annually, digital marketers are getting savvier than ever. Customer acquisition trends reflect this evolution. Organic search still leads as the largest channel for online customer acquisition. But as more retailers move towards a ‘free-to-paid’ subscriber model and rely on third parties to help drive visitors to their sites, email and affiliate channels have seen an explosion in growth over the past few years.”The savviest marketers in the new era of e-commerce will be looking beyond just where customers are coming from. They’ll be looking at the value of new customers acquired across channels, platforms, and geographies. And it turns out - not all customers are created equal. The study is an effort to reflect on the rapidly changing landscape of customer acquisition and shed additional light on what’s shaping the future of e-commerce growth.
You can check out the full report at Custora's website. Email marketing: it's still the best game in town!