Why Determining Quality of Customer Acquisition is as Important as Quantity
Most retailers already measure which sources of customer acquisition result in the highest quantity of leads, and they may also be tracking how much each group spends. However, there is another way to evaluate the quality of various acquisition sources: how satisfied are visitors from each source of new traffic?
We asked more than 15,000 online shoppers in the latest ForeSee Experience Index what led them to the retail website they were visiting, and by far the most common answer (33%) was general brand recognition or previous familiarity with the site. This group was also highly satisfied (FXI score of 82) and very likely to purchase (59%).
As you’ll see from the graph below, 25% of site visits resulted from promotional emails, and nearly one-quarter (22%) from search engines. Visitors who came through online searches were overall the least satisfied, and the least likely to purchase — though not by much.
cUSTOMER Acquisition Source % of Respondents FXI Score % Who Make a Purchase from Retailer Familiarity with site/company/brand 33% 82 59% Promotional e-mail(s) from this retailer 25% 81 60% Online search (Google, Yahoo, Bing, etc.) 22% 80 60% TV, radio, newspaper, or magazine advertising 17% 81 65% Internet advertising 17% 81 65% Word of mouth recommendation from someone I know 16% 82 61% Advertising on social media (Facebook, Twitter, Instagram) 13% 82 67% Video I saw on YouTube 12% 81 69% Internet blogs or discussion forums 10% 81 68% Message directly from this retailer on social media 9% 82 70% A shared post on social media 9% 83 67% Text messages/alerts from this retailer 9% 83 70% Product review website(s) (CNET, Epinions) 9% 82 67% Link from a shopping comparison website (Shopzilla.com, Shopping.com) 8% 81 65% Overall 100% 79 63%
When you analyze new customer acquisition rates, do you know which sources give you the best quality as opposed to just the most quantity? If you have a budget (and don’t we all?), do you understand how to allocate it among promotional emails, social advertising, traditional advertising, and paid search?
Only when rigorous customer experience measurement is integrated into other KPIs across the business (in the same way that financial data or operational efficiency is) will CX realize its full potential as a key player in overall business success.
Do you analyze acquisition sources using a CX filter? Let us know in the comments section below.
For more on the latest retail shopping trends across web, mobile, and stores, download your copy of the ForeSee Experience Index – 2015 Retail Edition today.