In an article written by Jessica Lee of Search Engine Watch entitled “Most Valuable Ecommerce Customers Come from Organic Search”, she cited a study done by Custora, a customer acquisition platform that specializes on customer analytics, revealing that the customers with the highest value or customer lifetime value (CLV) are acquired from organic search. Pay-per-click (PPC) and e-mail were next in line as tools for acquiring clientele. The CLV helps…
The CLV helps a company determine how much business it can expect to have, or more specifically, the potential profit each customer offers. The study focused on how much a customer spent in patronizing a company’s products in two years, starting from his first purchase.
This is extremely important case study to consider for any business. The lifetime value of your customers is crucial and you should be aware of the importance of gaining a strong foothold in e-commerce, with billions of dollars at stake. For this to happen, you should look into all the viable ways to increase your website’s visibility with online marketing strategies.
Aside from the three platforms mentioned above, affiliate, banner ads, Facebook, and Twitter can also convert searches to actual purchases. Using a web marketing firms like Digital Synergy, which offers complete internet marketing solutions, from web design to web development and web marketing, is critical to the success of a business in the e-commerce space. You need to make sure that your website is search engine-friendly for your potential customers to reach you in their organic searches, and drive business to your site.
It is interesting to note that the channels having the least CLV are the social networking sites, Facebook and Twitter. Facebook, reportedly worth around $40 billion, and its burgeoning rival Twitter, estimated at $10 billion, are worth one percent more and 23 percent less, respectively, than the average CLV. This shows that social networking is still in its infancy as a tool to acquire customers online. If organic search is still king of CLV, then SEO companies are its closest knights.
Rising up the ranks is e-mail marketing, the third highest channel ranking, at 12 percent higher than the average CLV. In the past four years, a quadruple increase in customer acquisition through e-mail was recorded; in fact in the first quarter of 2013, it accounted for the biggest number of shopping experiences at three percent, compared to two percent for search engine, and one percent for social media marketing. When you choose an internet marketing company to work with, make sure it takes these into consideration.
With e-commerce sales at $200 billion annually in the United States alone, businesses like yours, wanting to take a slice off that pie, must contract the services of an experienced web marketing company. This will ensure that your site provides your potential customers with experiences that are relevant to them at the very moment they are driven to your site.