• September 25, 2000

Cyber Dialogue today released the results of analysis that underscores the importance of businesses identifying and targeting their most profitable customers. According to Cyber Dialogue's analysis, the top 20% of online shoppers who spent at least $1,000 per year online account for 87% of the total consumer online sales market.

In order to capture and retain this valuable group, businesses need to understand their customers to determine which are making online purchases, what attracts them and how to keep them. Shoppers spending the most money online are likely to be affluent, educated, middle-aged and male. In addition, this group is much more likely than the average online shopper to purchase high price-point items online, participate in rewards programs, seek customer service by e-mail and state that their opinions of specific brand names have changed as a result of information they gather online.

"Many businesses are not equipped with customer relationship management solutions that enable them to distinguish between window shoppers and valuable repeat customers," said Qaalfa Dibeehi, director of Cyber Dialogue's Internet Consumer Practice. "This concentration of value among a minority of online consumers even extends beyond business models based on dollar sales. No matter how you define value - transaction volume, repeat visits, ad clicks - the key is being able to identify, acquire and retain this group."