The latest research done by Adobe Inc. and their Digital Index section of the website shows that the Pareto principle should not be forgotten and still plays a valuable role in the business planning process. The research outlines that 41% of online revenue comes from returning (customers who have already purchased something twice on your website) and repeat purchases (post-second purchase visitors that buy more stuff), who represent only 8% of total visitors to your online store.
The research states that in the US, only 1% of shoppers actually make a purchase, but more then 75% of retail marketing budgets are spent on search and display advertising to attract these type of visitors, not to bring or to increase the brand loyalty with the repeat purchasers.
The lesson from the report is to invest in brand loyalty, to make sure your current customers are satisfied and are coming back or referring you to their social circles, before you go and spend money chasing new customers that most likely will not convert. Tools like e-mail marketing, social media strategies and loyalty promotions and even simple thank you notes are the channels that should be used to target your valuable customers.