Increasing Online Spend Across Retail Customers
Power The Power Behind Subscription Services & Why Subscribers Spend More
50% of first-time shoppers start the transaction with a retailer. Only 34% return for their second purchase, the other 47% of the audience will continue their second transaction on a marketplace like Amazon. This presents a major challenge for the retail sector.
When this happens, all the up-front cost of customer acquisition (CAC) is borne by the retailer while all the long term customer value (LTV) that comes from the second and subsequent purchase behavior is lost.
- Subscribers analyzed spent 60% or more than non-subscribers, and the spending difference was greatest in the low-spending segments.
- Profitability originating from the LTV:CAC ratio is being impacted by customers repeating purchases in the marketplace.
- Why Subscription-based incremental revenue growth is essential for the future of retail.