Marketing

In the world of retail, ecommerce or not, the focus will always be on two main metrics – customer acquisition and customer retention. Customer acquisition is a fancy term for attracting new customers while customer retention is a fancy term for ensuring a customer returns and makes another purchase (or a few).
Among people who pay attention to retail-related data, it is a well-known fact that attracting a new customer costs five times more than retaining one. And despite this being such a widely-accepted piece of information, most retail companies, both brick and mortar ones and ecommerce ones, still put the majority of their money and attention into attracting new customers instead of keeping the existing ones loyal.

In the case of ecommerce companies, maybe this makes sense? Maybe ecommerce people know something the rest of us don’t? Maybe they know that there is no such thing as ecommerce customer loyalty?