In online marketing, email is still king: study

Publish Date: 
Jul 3, 2013

NEW YORK, N.Y. – Online marketing may be less complicated than you think: Social media is fine for getting consumers’ attention, but the real money is in tried and true email marketing, according to new research.

That’s because customers who visit retail websites through channels like Facebook and Twitter spend less, over time, than those who arrive via email, and much less than those who surf in from search engines, according to Custora, an E-commerce Customer Acquisition Snapshot SaaS (Software as a Service) firm.

The lifetime value of customers who come in from organic searches is 54 percent higher than average, the top source for higher value customers, the study noted. Among more proactive methods, cost per click was second at 37 percent above average and email was third at 12 percent above average. Facebook tied with banner ads at 1 percent above average, while customers roped in from Twitter had a customer lifetime value of 23 percent below average.

Customer Lifetime Value numbers refer to the amount customers spent in the two years after their initial purchase (initial purchase included).

The authors say email marketing has quadrupled over the last four years, and the most valuable online shoppers are those in rural areas who may be tens or hundreds of miles from the nearest brick-and-mortar specialty store.

Custora says the findings are derived from data spanning 72 million customers from 86 U.S. retailers across 14 industries. Read the full Snapshot HERE.

Posted by Holly Wagner