Study: Customer Acquisition Costs Fall

Share this article:
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.


Share this article:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.