Study: Customer Acquisition Costs Fall

Share this content:
Customer acquisition costs continue to drop sharply just as retailers selling online are trimming their overall marketing budgets in favor of direct marketing, according to a second-quarter online retail update from Boston Consulting Group and the National Retail Federation's Shop.org.


The study of 74 Internet-only and multichannel retailers found that online customer acquisition costs fell to $14 in the second quarter, down 65 percent from the year-ago period. These same costs in the first quarter of this year fell to $18, from $23 in the holiday 2000 season. BCG and Shop.org attribute the decrease to more effective marketing.


Retailers selling online are spending more on direct mail, e-mail and catalogs rather than print and broadcast media. In the second quarter, 35 percent of marketing budgets on average were spent on e-mail, catalog and direct mail, up from 21 percent in 2000.


Spending on print advertising has fallen from 22 percent of retailers' marketing budgets during 2000 to 7 percent in the second quarter, and television has dipped to less than 1 percent.


Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here