June 21, 2012 09:00 ET

New Data Reveals Flash Sale Repeat Spending Dominates Traditional Online Retail

Facebook and Google Ads Yield Customers With Similar Lifetime Values

PHILADELPHIA, PA--(Marketwire - Jun 21, 2012) - Within one year of making their first purchase, customers of traditional online retailers come back to spend another 94% of the first purchase amount. For Flash Sale businesses, that number is 385% -- over four times as high.

This and other new insights are revealed in the Summer 2012 RJMetrics eCommerce Customer Lifetime Value Benchmark Report. The survey of Internet Retailers, Flash Sale, Group Buying, and Daily Deal sites found results varied widely based on the companies' business models and product mixes, with the top decile having customer values of greater than 6 times the first 30 days' purchases within one year.

The benchmark also found:

  • Facebook Ads hold their own against competitors when it comes to generating high-value customers. The average customer acquired via Facebook Ads spends 8% more in their lifetime than the average customer acquired via Google Ads.
  • Group buying, daily deal, and flash sale customers purchase nearly twice as frequently on average as customers of traditional online retailers.
  • Customers at traditional Internet retailers spend more per purchase, despite purchasing less frequently. On average, purchases made at traditional online retailers are over 50% larger than those made from group buying, daily deal, and flash sale retailers.

"This data validates that 'next-generation' business models in eCommerce have legs," said Robert J. Moore, CEO of RJMetrics. "The days of calculating ROI based upon a single purchase are behind us. We are seeing Internet retailers across the board make smarter marketing and merchandising decisions by optimizing for long-term customer loyalty."

Complete survey results are available at no charge online at and

About RJMetrics

RJMetrics helps online businesses make smarter decisions by making their data more understandable and actionable. The company offers a cloud-based solution that uses business data to power an online dashboard for extracting deep insights like customer lifetime value, loyalty metrics, and cohort analysis. Companies in eCommerce, flash sales, daily deals, software-as-a-service (SaaS), and social media leverage RJMetrics on a daily basis to optimize business decisions. To learn more or try RJMetrics free for 30 days, visit