Customer acquisition platform Custora has recently determined what we already know here at Mintcandy, and that is the fact that Organic Search (read SEO for that then!) is confirmed to be king of all of the customer acquisition channels that are out there in digital marketing land!
Organic Search tops them all, including PPC (Pay Per Click), Email and the Social networks.
This recent study looked into E-Commerce and the lifetime value (to a business) of a customer. This is a truly interesting metric for measuring marketing success that really cuts to the chase for all E-tailers.
The very highest value customers come from Organic Search and, amazingly, at a rate that is 54 percent higher than the ‘average lifetime value’ of a customer, this was then followed by PPC and email, according to Custora.
The marketing term ‘customer lifetime value’ (CLV) is basically a way that makes it possible to calculate the entire ‘lifetime’ profit a company can expect to earn from its relationship with a customer over time – nice!
In the case of this study in particular, CLV is referring to the total amount of cold hard cash that customers were actually measured to have spent within two years of their initial purchase from the business.
This study really gets to the bottom line in our opinion, fully confirming the seminal importance of Search Engine Optimisation (SEO) in any online marketing campaign.
They say in the report that “The savviest marketers in the new era of E-Commerce will be looking beyond just where customers are coming from.”
And further they state “They’ll be looking at the value of new customers acquired across channels, platforms, and geographies.”
Social media is generally accepted these days as a common denominator in the path to conversion, and sometimes is the final click or at times only click in a conversion funnel. However according to Custora, clients clicking through from the social networks don’t stack up quite so well compared to the CLV of clients that are coming from other channels, particularly organic (natural search).
E-Commerce customers that have been acquired through Twitter are worth 23 percent less than the average CLV, the report said:
Not surprisingly to us, email marketing as an acquisition channel is actually on the rise as businesses fight hard to get their message out there.
This new report does actually give some more validity to the notion of email as a power channel for digital marketing and conversions. In actual fact, according to it, customer acquisition via email has remarkably quadrupled over the past four years in the world of E-Commerce.
It is worth noting in particular that the data clearly shows the fundamental importance of organic search (read SEO for that) to gaining customer acquisition, which remains much higher than email and thereby is crowned king of all acqusition channels.
Mintcandy’s view is simple – Long live the king, long live organic search!
The underlying data that was collected for this new study was obtained from 86 U.S. retailers across 14 different industries and around 72 million customers. Acquisition channels were obtained from our old friend Google, by utilising the “utm_medium” tag which is available from Google Analytics.