I'm taking a class about online marketing and got an assignment that describes the following situation:
Your eCommerce business (selling apparel) is listet in a comparison search engine that generates 2500 clicks per month. You pay .25$ per click. You turn a profit of 1500$ while spending 750$. The new customer acquisition rate is 90% but the retention rate after 90 days is at 15% and after 180 days at only 10%.
Question: What would you do with this partner (I assume the comparison search engine) and where to you see room to improve?
My take on this:
I have ideas for increasing the retention rate like newsletter marketing and retargeting campaigns but what throws me off is the part about what to do with the ppc partner. I assume there might be some leeway in the conditions but is there any way to increase retention rate on the side of your ppc partner?
any idea is appreciated!