In these post-Thanksgiving, post-Black Friday deal days, RetailWire asks, “Are online shoppers addicted to deals?”
It cites research that shows that deal-seekers are 50% less likely to make a second purchase at a retailer if their first transaction involves discounts or sales:
New online customers whose first transaction involves a discount or special offer are 50 percent less likely to return to make a second purchase.
The research also found:
Customers who visit an e-commerce site for the first time and make a purchase at full price are more than twice as likely to make a second visit;
Returning customers will spend 150 percent more per visit versus those who are initially motivated by a sale;
Over the lifetime of the relationship, a customer whose first interaction with a retailer does not involve a discount is worth at least 2.5 times more than a customer who responds to a short-term discount or promotion.
“Our data shows that when price plays a significant role in the first-time purchase with a retailer, even online, the chance of them becoming a long-term and loyal customer can be low,” said Dr. Greg Leibon, CTO of Coherent Path and a resident scholar in mathematics at Dartmouth College.
Read “Are online shoppers addicted to deals?” at RetailWire.
