Online shopping
Online stores urged to identify 'Most Valuable Purchasers'

Small number of shoppers dominates e-commerce

Twenty per cent of online buyers drive 46 per cent of spending

Written by Robert Jaques

Nearly a fifth of the US online buying population accounts for nearly half of total US online spending, research published today has revealed.

Research firm Nielsen//NetRatings said that these buyers, dubbed 'Most Valuable Purchasers' (MVPs) spend more dollars online and make more purchases on the internet than the rest of the online buying population.

The Nielsen//NetRatings MegaPanel online retail study segmented online shoppers into four categories based on the amount of their online spending (low or high) and their frequency of purchases (low or high).

The MVPs, who spent the most money online and made the largest number of purchases, were found to comprise 18 per cent of online buyers, driving 46 per cent of total online spending.

In comparison, those spending the lowest amounts online and making the fewest purchases made up the majority, some 55 per cent, of online buyers. This group accounted for 21 per cent of online purchases.

"Each retailer needs to analyse its own customer base to identify its respective MVPs and develop targeted marketing programmes to maximise revenue from these shoppers," said Heather Dougherty, senior retail analyst at Nielsen//NetRatings.

"Not only are the MVPs valuable based on sales and number of purchases, they are inordinately loyal to the retailers from which they purchase."

MVPs were found to be heavy users of comparison shopping tools as compared to other online buying segments.

In addition, they skew towards a higher household income, are more likely to be connected via broadband, and are heavier internet users in both overall time spent online and time spent on retail websites.

"Customer acquisition strategies need to include a combination of broad reach marketing tactics, including search and comparison shopping tools, as well as targeted websites that are frequented by the MVPs," said Dougherty.

"Online retailers also need to tailor loyalty programmes that reward MVPs for purchasing at their sites to drive repeat sales and maintain a strong relationship with these valuable customers throughout the year."

Tags:

Further reading

Related articles

Silver surfers taking over the web

UK users aged 55-plus on the cusp of becoming largest group online   More...

Heavy bloggers take over the web

Prolific bloggers view three times as much content on Digg   More...

Online Christmas spending surges

$22bn spent in the US so far   More...

Brits racked up £11bn in online sales in 2006

Fastest rate of growth since the dotcom bubble   More...

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

09 May 2008

2.51 MBWiMax muddle, Google tactics and asteroid bunkum More...

08 May 2008

3.26 MBBroadband Anywhere, phone-free transport and Web 3.0 More...

07 May 2008

3.19 MBUK success, a paucity of IT women and robot wars More...

Poll

DATA ENCRYPTION

DATA ENCRYPTION

Should encryption be mandatory for all personal data held by companies and governments?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Ofcom

Ofcom outlines future wireless vision

Wi-Fi healthcare and intelligent car brakes in the pipeline   More...

HP

HP Labs opens doors to academia

Innovation Research Program invites proposals related to current research   More...

Advertisement

Asteroid

Nasa plans manned mission to asteroid

Bruce Willis thankfully not going   More...

MySpace

MySpace offers opt-in data sharing

Deals signed with Photobucket, Twitter, eBay and Yahoo   More...

Advertisement