Monday, January 23, 2012

Track Your Repeat Customers

If you aren’t tracking your repeat customers, then you’re losing money.

Your customers are not all the same – they are not clones developed in some lab. Depending on how they came to your site (Affiliate Program, Google, Banners, etc) they behave completely different. You see this already with conversion metrics – different campaigns have various click to sale %'s, so why would anyone assume that a customers’ behavior after they buy is going to be the same?

Sounds like common sense right? Yet I just had conversations with various marketers this week who don’t look at their CRM metrics. They just average all their repeat business into one amount and average it across their campaigns.

What was that? Oh, that was the sound of my jaw hitting the floor followed by my palm smacking my forehead.

Here is an example of what a new ValuLogix Client saw recently on two similar traffic sources...

Traffic Source 1
2435 clicks
56 sales
34 repeat sales
2 refunds
0 chargebacks
Profit = $2345


Traffic Source 2
2235 clicks
53 sales
4 repeat sales
6 refunds
2 chargebacks
Profit = $800

You can see pretty clearly that, although both sources of traffic convert about the same 2.3%, the profit margins were wildly off. Yet this marketer, up until they used ValuLogix, was paying out the same dollar amounts for both traffic sources. The high performing traffic source was subsidizing the poor performing traffic source. After seeing this report, they immediately shifted more of their marketing budget to Traffic Source 1.

Again, if you aren’t tracking your repeat customers, then you’re losing money.

So Stop Losing Money! Use ValuLogix. Track your repeat customers and spend your budget more wisely.

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