Customer Loyality Driving Online Profitablity

The more often a customer visits an ecommerce site, the more likely that customer is to buy and become a repeat buyer, according to a recent study from Bain & Company and Mainspring.

Key Findings:

* Online retailers lose money on one-time shoppers:
Online grocers, for example, have to retain customers for 18 months just to break even.
* Repeat purchasers spend more over time: In groceries, customers spent 23% more in months 31-36, than in the first six months.
* Positive word-of-mouth is a powerful way to acquire new customers: On average, each apparel shopper referred three people to an online retailers site after his or her first purchase. After 10 purchases, that same shopper had referred seven people to the site. For consumer electronics, the average customer had referred 13 people after 10 purchases.

Bain & Company is a global management consulting firm, while Mainspring is an Internet strategy consulting firm.

About the Author.

Robert McKim

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DBMarkets@aol.com
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