Methods of Attracting and Retaining Online Customers
In “maturing” online markets (those that have a substantial number of large, established players, such as health e-Commerce) customer acquisition costs are higher than those in less developed, less competitive markets. For players in mature online markets, the “low-hanging” fruit has already disappeared, and the cost of attracting new customers increases sharply as competitors seek to steal each other’s market share. Moreover, companies’ marketing dollars must not only attract customers, but also successfully convert those customers from site-browsers into purchasers. In addition to finding cost-efficient ways to attract new customers and convert them buyers, companies must also focus on retaining the customers they have already spent their marketing budgets to acquire.