RealTime IT News

Parsing the 90/20 Rule of E-Commerce

New research on the e-commerce industry finds that the top 20 percent of online shoppers who spent at least $1,000 per year online account for about 87 percent of the total consumer online sales market.

Analytical eCRM provider Cyber Dialogue said its research "underscores the importance of businesses identifying and targeting their most profitable customers."

Businesses need to understand their customers to determine which are making online purchases, what attracts them and how to keep them, the company said.

Shoppers spending the most money online are likely to be affluent, educated, middle-aged and male, Cyber Dialogue says. In addition, this group is much more likely than the average online shopper to purchase high price-point items online, participate in rewards programs, seek customer service by e-mail and state that their opinions of specific brand names have changed as a result of information they gather online.

"Many businesses are not equipped with customer relationship management solutions that enable them to distinguish between window shoppers and valuable repeat customers," said Qaalfa Dibeehi, director of Cyber Dialogue's Internet consumer practice. "... no matter how you define value - transaction volume, repeat visits, ad clicks -- the key is being able to identify, acquire and retain this group."

Cyber Dialogue's Internet consumer practice outsources a technology that integrates log file, registration and e-commerce data with traditional data sources to help companies reach and retain high value online shoppers. In addition, the company offers strategic analytics, e-mail and campaign management services and syndicated online consumer research.