Email & Retention
How much should ecommerce brands spend on existing customers?
There is no fixed percentage of marketing budget that belongs to existing customers. The right investment depends on how frequently customers can buy again, how valuable repeat orders are and how effectively you can reach them without paid media.
Owned channels are usually cheaper
Email, SMS and direct communication can often reach known customers without paying auction prices for every interaction. That does not make them free, but it can reduce the need for heavy paid retargeting.
Paid advertising can still help
Meta and Google can support:
- Product launches
- Replenishment
- Cross-selling
- Seasonal campaigns
- Reactivation
The question is whether those ads create incremental purchases or simply claim customers who would return anyway.
Compare marginal return
If an extra $5,000 on existing-customer retargeting creates little change in Shopify repeat revenue, the budget may be better spent acquiring new customers.
Avoid starving acquisition
Retention monetizes the base you already have. New-customer acquisition expands that base. Budget should follow incremental contribution, not a predetermined split.
Find out whether the spend is truly adding value
If a large share of your paid media is targeting customers who already know the brand, send us an inquiry. We can help determine whether the spend is truly adding value.