Tell me where do you live and I’ll tell you which customer you are

Do you live in a rural state? If you can answer yes to this question, you are probably among the most valuable online customer in the entire country. Do you live in California or in any other densely populated coastal state? If so, you are one of the best fashion brands shoppers.
Custora, a customer acquisition and retention platform, in its first report about e-commerce customer acquisition trends, reported these data related to 72 million clients from 86 U.S. retailers across 14 industries.
In another report the same company explains how E-commerce is affirming to be more and more important.
year-over-year
Source: Custora E-Commerce Pulse Quarterly report Q1 2014
In the last five years in the US we assisted to a disproportion between online and offline revenue growth. While the first one registered a +105%, the offline retail growth by 26%. In addition, at the end of 2013, e-commerce grew by 16.9% over the previous year, while total retail grew only by 4.2%.
Since E-Commerce is growing in importance, marketers need to plan winning strategies to gain new clients and maintain the old ones. So, what’s next? As Custora reveals, Email marketing is increasing prominence, representing the first acquisition channel growth.
custora_1-660x438
Other useful data important to understand how valuable customers behave is about which platform they use fort their e-shopping. As Custora underlines in its last report about e-commerce, the majority of the online customers buy products using a desktop, followed by tablet users and desktop users. However, if we take a closer look to how people buy, we notice that consumers are increasingly using tablet and phone over desktop.
Custora where people buy(1)
In addition, Android based platform are increasingly acquiring new slice of the market.
Mobile-Q1
Given this data is essential to plan a winning strategy of retail online. E-mails based marketing strategies are revealing to be efficacies, while Twitter-based strategy are not so functional to reach new customers. So, if you like challenges in your life, you can invert the negative trend and create a winning e-commerce marketing strategy based on Twitter. In this last case, Good luck!

Sources:

Custora. (2013). E-Commerce Customer Acquisition Snapshot. Retrieved from http://blog.custora.com/custora-content/uploads/downloads/2013/07/Custora_EcommSnapshotQ213.pdf

Custora. (2014). E- Commerce Pulse Quarterly report Q1 2014. Retrieved from http://blog.custora.com/2014/05/q1-2014-pulse-us-e-commerce-update-online-retail-is-up/

Sheperd K. (May 16, 2014). QI 2014 Pulse USE-Commerce Update: Online retail goes up & Android eats into Apple. Retrieved from http://blog.custora.com/2014/05/q1-2014-pulse-us-e-commerce-update-online-retail-is-up/

Wohlsen M. (July 1, 2013). Email Is Crushing Twitter, Facebook for Selling Stuff Online. Retrieved from http://www.wired.com/2013/07/email-crushing-twitter-facebook/

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4 thoughts on “Tell me where do you live and I’ll tell you which customer you are

  1. This is an interesting study. I am sure the industries that engage in e-commerce will be ongoing adjusting their strategies to target the most likely customer, and get him / her swipe fingers over their mobile device and within seconds make a purchase or two. However, I am wondering if this type of strategy would leave other potential, and even unlikely customers, completely unengaged because the brands won’t focus on these populations at all?

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  2. I think online shopping is popular due to the audience reaction to instant access. You see something you like, you click and buy it. However online shopping has constraints as well. For instance, trying on your clothing, returning it if it is not as pictured or getting lost in the mail. However, even with all these types of limitations, people still consume goods online regularly. Which goes back to access. Online shopping is the most popular form of retail in the Christmas season. This has everything to do with how the audience perceives new technology.

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  3. I would have to agree with Nadia. This study is interesting. I am wondering how they gathered their data since many users may utilize multiple devices to purchase items. If they are basing e-commerce on these specific industries and are only gearing people toward certain products how does that expand markets? Would this isolate certain communities from brands due to their location? I believe this study poses more questions than it answers – but it is thought provoking.

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