Organic Search Contributing the Most to Customer Acquisition in eCommerce Market!

Customer Acquisition Platform Custora, in the latest study has revealed that all the customers are not created equal, when it comes to eCommerce industry. It has also calculated the lifetime value of a customer in the study.

The research shows that most of the highest value customers on an eCommerce portal come from organic search. The visit rate is 54 percent higher than the average lifetime value of a customer. PPC and email come after organic search.

Customer Lifetime Value (CLV) is a way of calculating the total profit a company can expect to make from the relationship with a customer over time. Custora considered the total amount spent by the customer in the two years of initial purchase for this particular study.

Custora in its report said, “The savviest marketers in the new era of ecommerce will be looking beyond just where customers are coming from. They’ll be looking at the value of new customers acquired across channels, platforms, and geographies”.

Social media is also a common contributor in the conversion process but is some time the last click or only click in the conversion chain. Custora has however revealed that customers coming from the social networks don’t stack up against CLV of customers who are coming from other channels.

The report also said that the customers acquired through Twitter have 23 percent lesser worth than the average CLV.

Customer acquisition through email marketing is increasing. There was another study by Monetate, which revealed that email was giving tough competition to search and social media in driving conversions for eCommerce. Custora data has also revealed that the acquisition of customer via email has quadrupled in the past four years in the eCommerce market.

Organic search is however contributing more to customer acquisition than email marketing.

Custora collected the data from 86 U.S. retailers in 14 industries. It had purchase behavior details of 72 million customers. The acquisition channels were obtained via “utm_medium” tag in Google Analytics.