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Getting to know the 1% who generate up to 40% of retail website turnover

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New research suggests that just over 1% of a retail website’s users could be responsible for as much as 40% of its revenues. It’s an interesting thought, especially at a time when the emphasis is on getting to know the customer. So how can retailers target their own 1%?

Qubit, who use big data to measure the customer experience, analysed 950m page views from more than 123m website visits. It found that 1.06% of total visitors are responsible for four-tenths of a site’s income. But at the same time, there’s another 20% of visitors who will never buy.

The research, which comes as Qubit releases the latest version of its customer experience management platform, identifies four main categories of website users.

Sofa surfers

This is the 17% of website users who visit sites regularly but never buy, according to Qubit. They’re twice as likely to be using an Apple device – tablets are device of choice – equipped with a Safari browser. They view between 9am and 11am and 1pm and 5pm, and tend to come from urban areas, though, says Qubit, Londoners seem less prone to this type of online behaviour.

Big spenders

Just 0.03% of total users, big spenders create 30% of revenue, the research suggests. Clearly the group to watch, they visit preferred sites 300 times more often than average users and are 20% more likely than the average to be using a tablet – and 10 times less likely to be visiting from a smartphone. These are 23% less likely to come from Central London but they are over-represented in the London suburbs, in particular Ealing, and tend to surf the net between 1pm and 3pm – but also spend up to 20 times longer than the average user surfing between midnight and 4am.

Basket cases

This 2.46% of users fills its shopping basket but never buys. They are likely to be Google Chrome users, from the Midlands (especially Birmingham) and the North West, and tend to pay their web visits between 7pm and 3am.

Speedy shoppers

This no-nonsense group makes up 1.03% of users but generates 10% of total revenues. They’re 18% more likely to be using a mobile, surfing using Internet Explorer or Chome, with prime examples of this shopper group to be found in north east London.

Graham Cooke, chief executive of Qubit, said: “By breaking down online shoppers into these different personas its easy to see where retailers should be focusing their efforts. Sofa surfers and basket cases show all the traits of ‘real’ shoppers and if you’re not analysing your audience properly you’ll never know that they’re giving you nothing back.

“By understanding what people are doing on your site, and whether or not they’re going to turn into paying customers, you can make more informed decisions about where to invest your marketing budget. Conversely, its vital that you encourage and embrace your big spenders and the speedy shoppers because these tiny segments are driving a massive percentage of your revenue.”

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