Quick Tip: Are they loyal or offer-driven?

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Gary recently used Compete.com to analyze how one of his client’s traffic compared to its closest competitor. He quickly discovered:

“Never mind the actual numbers: a clear trend emerged. While our client’s traffic stayed stable, the competitor’s bounced up and down like a SuperBall. Intelligence received. Our client had a loyal following; the competition was offer-driven.”
Gary Stein is director of strategy for Ammo Marketing. He has been working in interactive advertising for nearly a decade, writes a column for ClickZ, and maintains a blog on advertising and media trends. Gary lives in San Francisco with his family.
Have a story or tip to share? e-mail them to membersupport@compete.com We’d love to hear from you!

David Utter of WebProNews adds:

Loyalty is the keystone to long-term success. Customers who keep coming back make it easier to sustain a business, since the cost of acquiring that customer has been repaid.

If two competitors have been running neck and neck for customers within a niche, that steady loyalty looks great, but those spikes in interest for the other site have to be intriguing. How are they consistently building offers that boost traffic?

The spikes will prove instructive immediately to the site publishers. If they rise above and then return to a baseline of traffic, the offer probably performed as it should have.

When a website’s traffic lives and dies on the offer, with no loyalty, it means someone needs to take a closer look at the business and its visitors beyond that marketing effort. Are they abandoning shopping carts at the shipping price screen? Do they arrive at a landing page of product information, and then exit?

The reactions may indicate something the business can change for the long-term good of the website. With all things being equal, customers who only stop by and convert when the price is right are telling the site publisher what they think of the everyday business.

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