Increasing Online Spend Across Retail Customers

Power The Power Behind Subscription Services & Why Subscribers Spend More

50% of first-time shoppers start the transaction with a retailer. Only 34% return for their second purchase, the other 47% of the audience will continue their second transaction on a marketplace like Amazon. This presents a major challenge for the retail sector.

When this happens, all the up-front cost of customer acquisition (CAC) is borne by the retailer while all the long term customer value (LTV) that comes from the second and subsequent purchase behavior is lost.

Report Findings:

• Subscribers analyzed spent 60% or more than non-subscribers, and the spending difference was greatest in the low-spending segments.
• Profitability originating from the LTV:CAC ratio is being impacted by customers repeating purchases in the marketplace.
• Why Subscription-based incremental revenue growth is essential for the future of retail.