E-commerce success dictated by customer loyalty

A new report by marketing platform Qubit has revealed that just over 1% of users who purchase items from online retailers make up to 40% of their average revenue, highlighting the necessity of a loyal and satisfied core consumer base.

The research analysed 950 million page views from over 123 million website visits to also discover that a selection of customers identified as the main ‘big spenders’ of online sites that make up just 0.03% of total users create an impressive 30% of revenue.

These select few loyal customers visit their chosen retailer on average 300 times more often than other users, and are 20% more likely to be using a tablet, but 10 times less likely to be accessing the site from a mobile, highlighting why many brands are continuing to invest heavily in mobile advertising to build up a larger mobile customer-base.

Graham Cooke, CEO of Qubit, commented: “By understanding what people are doing on your site, and whether or not they’re going to turn into paying customers, you can make more informed decisions about where to invest your marketing budget.

“Conversely, its vital that you encourage and embrace your golden core and the focused few because these tiny segments are driving a massive percentage of your revenue.”