need help with an assignment about retention rates in ppc environment

by Trax92
3 replies
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Hi,

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!
#assignment #environment #ppc #rates #retention
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  • Profile picture of the author dave_hermansen
    The referral source of the customer is irrelevant. Retention rates should be pretty much the same on a site whether they found your site through organic search or via PPC.

    There is nothing you can do to increase retention rates with PPC without doing the same for all other avenues.
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    • Profile picture of the author Trax92
      that's what I thought as well, thank you! Maybe it's just poor wording on the assignment.
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      • Profile picture of the author dave_hermansen
        Originally Posted by Trax92 View Post

        that's what I thought as well, thank you! Maybe it's just poor wording on the assignment.
        I sure hope it is just poor wording and not faulty logic. This is an educator, after all.
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