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Tuesday, July 21, 2009

Email Marketing to Improve Customer Acquisition and Customer Loyalty

When it comes to marketing, traditional or web-based, “customer acquisition” is a key indicator when determining success and Return on Investment (ROI) from your marketing efforts. “Customer loyalty” is also very important as we know that the lifetime value of a customer is dependent on how well we communicate with and retain customers.

The following are published industry facts focused on web-based marketing and the effects on “customer acquisition” and “customer loyalty”.


Customer Acquisition Facts



  • Permission marketing yields 30% increase in conversion and a 10% increase in return on investment. (Permission Marketing, Seth Godin)
  • Traditional direct marketing costs $1.50 per item, while online direct marketing averages 15-30 cents. (Andersen)
  • Traditional direct mail averages 1-2% response rate. Permission marketing averages 10-15% response rates. (Direct Marketing Association)
  • 80% of your visitors will never return to your website. (eMarketer)
  • The odds of selling a product to a new customer are 15%, whereas the odds of selling a product to an existing customer are 50%.
  • Email click-throughs measure 3-10x that of banner ads at 2-20% CTR.
  • Internet users represent over 72% of the U.S. population and greater than 25% spend their time online using email. (UCLA Report 2001)

  • Customer Loyalty Facts

  • It costs 5 -10 times more to acquire a new customer than it does to retain an existing one. (Emarketer)
  • If you trail your competition by 20 points in customer loyalty you are out of business.
  • Improving customer interactions is one of the single largest impact areas, across all industries. (Accenture)
  • A 5% increase in customer retention yields an increase in profits between 25 -100%.
  • Customer Loyalty Fact - Repeat customers spend 67% more; After 10 purchases, a customer has referred up to 7 people. (Bain & Company)
  • Online promotions generate 2 to 5 times the customer response rates of traditional promotions.
  • 70% of complaining customers will do business with the company again if it quickly takes care of a service snafu.


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