Online Retail Marketing Initiatives in 2001

01/22/2002

The cost to e-retailers to acquire a customer declined from $45 per customer in Q1 2000 to just $12 in Q3 2001, and 78% of e-retailers' marketing expenditure went to online media in Q3 2001.

According to the Shop.org quarterly survey of US online retailers, conducted by the Boston Consulting Group, the cost to e-retailers to acquire a customer declined from $45 per customer in Q1 2000 to just $12 in Q3 2001. Though the acquisition cost rose by $3 between Q3 and Q4 2000, it fell by 33% over the first three quarters of 2001.

To put online customer acquisition costs into greater perspective, eMarketer's 2001 Online Marketing Report presents information from Fiore & Collins regarding a number of promotional methods. Fiore estimates that in 2001, print ads cost a whopping $958 per customer, but online ads cost just $21 and e-mail cost $24.

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Source of Article: eMarketer

Date of Article: January 9, 2002