drag2share: Which Digital Channels are Most Effective at Customer Acquisition

source: http://feedproxy.google.com/~r/businessinsider/~3/L5igeZYUM74/social-media-lags-as-direct-customer-referrer-but-could-be-fueling-organic-purchases-2013-7

E-commerce retail sites are acquiring just .18% of their online customers via Facebook and Twitter, according to a study released June 25 by Custora.

The study analyzed Google Analytics data linked to 72 million customers — an online visitor who purchased something — from 86 U.S. online retailers across 14 industries.

(E-commerce sites typically add tags to their links across the Web, in both paid and non-paid placements, in order to track the source of their leads and sales in Google Analytics.)

Organic search continues to grow as a channel, accounting for nearly 17.53% of customers acquired in the first half of 2013, according to the study, led by data scientist Aaron Goodman.

E-mail has more than quadrupled its share of customer acquisition volume over the last four years, making it the fastest-growing among all the channels tracked in the study.

Other search-related channels also performed well.

Social media ranked low as a customer-generation channel. That said, Facebook is showing some potential. In 2009, less than .01% of new online retail customers came from Facebook, compared to .17% so far this year.

Twitter has never accounted for more than .01% of new retail customers during the five-year study. Worse, a Twitter customer’s lifetime value was 23% less than the average across all customer sources.

There is more than one way to interpret Custora’s data.

One could conclude that social! media i s ineffective as an e-commerce customer acquisition tool. But another way to look at it is that online retail sites simply aren’t putting a lot of resources into marketing themselves on social media, and are favoring search and e-mail channels instead.

Also, even if social media still isn’t there yet as a reliable direct source of customers, there’s no way to tell how many customers were in fact influenced by content they saw on social media, and visited retailers’ sites later.

Download the chart and data in Excel.

BII customer acquisition channels


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By: Dr. Augustine Fou Wednesday, July 17th, 2013 news

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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