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Majority of online payments driven by a tiny portion of customers


New research has revealed that around one per cent of online consumers contribute as much as 40 per cent of retail sales online.



The claim, made by Qubit, a marketing platform, comes on the back of analysis of 950 million page views from more than 123 million website visits.



The study suggests a sizeable amount of online marketing is wasted, or at least that it could be targeted more intelligently.



What’s more, the research found that loyal users, otherwise known as ‘big spenders’, clicked on their chosen website 300 times more often than the regular consumer.



Of these, the majority were found to live in the suburbs of London, especially in Ealing. And this shows that an increasing number of these consumers shop using tablet technology.



“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,” commented Graham Cooke, chief executive officer of Qubit.



“Conversely, it’s vital that you encourage and embrace your golden core and the focused few because these tiny segments are driving a massive percentage of your revenue.”



The study divided into three categories: ‘Sofa surfers’, who made up 17 per cent of website users; ‘basket cases’, who represent 2.46 per cent of users; ‘speedy shoppers’, who make up 1.03 per cent of users.



This latter group generates as much as ten per cent of total revenues, thereby rendering them the second most valuable group to retailers, after ‘sofa surfers’.



“By breaking down online shoppers into these different personas it’s easy to see where retailers should be focusing their efforts,” Mr Cooke added.



Earlier this year, eMarketer suggested that online payments are becoming increasingly commonplace and appear likely to become even more widespread in the coming months and years.