Competition in ecommerce is fiercer than ever. The cost of acquisition is continuing to rise, while customers’ discretionary spend is decreasing. Recent Shopify research shows 79 per cent of Australians are cutting down on spending to save money, and more than half of consumers are actively seeking the best value.
Online businesses wanting to sustain or grow their market share cannot afford to focus solely on finding and converting new customers. A more financially savvy approach would lead with focusing on the lifetime value of a customer, and applying lifecycle and retention marketing strategies that keep existing customers engaged, valued, and coming back for repeat purchases.
