Big Spenders Account For Nearly Half Of Online Shopping Dollars - InformationWeek

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Big Spenders Account For Nearly Half Of Online Shopping Dollars

Retailers should identify these "most valuable purchasers" and develop targeted marketing programs to get as much revenue from these shoppers as possible, Nielsen/NetRatings said.

Web shoppers who buy and spend the most make up less than a fifth of the online buying population, but account for almost half of the dollars spent, a research firm said Friday.

As a result, retailers should identify these "most valuable purchasers" and develop targeted marketing programs to get as much revenue from these shoppers as possible, Nielsen/NetRatings said.

People who spent more than $185 on the Web and made four or more purchases from June to August accounted for 18 percent of online buyers in the United States and 46 percent of total spending, the research firm said. Those who spent the same amount on three purchases or less accounted for 11 percent of the buying population and 24 percent of the total.

In comparison, people spending the fewest dollars online and making the fewest purchases made up the majority of buyers, 55 percent, and accounted for 21 percent of online purchases.

As a result, retailers need to analyze their customer bases to identify the big spenders and target them with marketing programs. Besides their value as revenue contributors, people buying the most online are also inordinately loyal to the retailers they buy from, Nielsen/NetRatings analyst Heather Dougherty said.

In addition to loyalty, big spenders are heavy users of online comparison-shopping tools, tend to fall into higher income brackets and are more likely to be connected via broadband than the average U.S. Internet user, Nielsen/NetRatings said. They also spend more time online and on retail Web sites.

"Customer acquisition strategies need to include a combination of broad reach marketing tactics, including search and comparison shopping tools, as well as targeted Web sites that are frequented by the MVPs," Dougherty said in a statement. "Online retailers also need to tailor loyalty programs that reward the MVPs for purchasing at their sites to drive repeat sales and maintain a strong relationship with these valuable customers throughout the year."

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