Brands losing a record $29 for each new customer acquired

In 2013 merchants lost on average $9 for every new customer acquired, but today merchants lose as much as $29 –a 222% rise in the last eight years, a study in the US shows. Customer acquisition costs and higher rates of product returns account for virtually all of the difference, the research from SimplicityDX in the US finds.
Jordan Jewell, former research director at IDC and now analyst in residence for VTEX, explains: “Customer acquisition cost is a massive challenge for brands and retailers. Some brands now find it cheaper to acquire new customers by delivering personalized paper catalogs to their homes rather than acquire them via digital advertising. This would have been unthinkable just a few years ago when marketing through digital channels was a bargain.”