The Cost Difference Did you know that repeat visitors to your site are 8 times more likely to purchase products than new visitors? Currently, the average conversion ratio is 1.4% online for first-time visitors. That means that, on average, for every 100 visitors to a website, less than two visitors convert to a sale. With an average marketing cost of 18 cents per new visitor, that’s nearly $13.00 you have to spend to capture one sale.
In contrast, the conversion ratio for marketing to existing customers is 7.9%, with an average marketing cost of 5.7 cents per visitor. What does that equal? Each sale will cost you less than $1.50 in advertising costs.
Conversion Rates of New vs. Existing Customers
Figure 1: Average New Customer Conversion Rate is 1.4%, Existing Conversion Rate is 7.9%.
Marketing Costs of New vs. Existing Customers
Figure 2: Marketing costs for new customers are $.18 per visitor and $13.00 per sale. Marketing costs for existing customers are $.057 per visitor and $1.50 per sale.
Note: The figures above are based on industry averages found in research done by StatMarket.com and WebSideStory, leading providers of web site analytics and statistics.
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