How online retailer Eloquii uses physical stores to rope in new customers

Acquiring new customers can be the most expensive cost for retailers, especially online direct-to-consumer ones.

At Digiday’s Retail Forum in New York City on Thursday, Kelly Goldston, vp of marketing at e-commerce fashion retailer Eloquii, said a retailer must think about the lifetime value of a customer, evaluating first-party data and the value of physical stores in bringing in new customers.

Goldston said all retailers should pay attention to LTV, the lifetime value that a customer can bring to a business; and CAC, the cost to acquire that customer. The ratio of those two figures should determine how much an advertiser should pay to acquire a customer.

Just because a customer buys something online does not mean they are necessarily worth retargeting right away. “Marketers must think long-term,” Goldston said.

The answers are in evaluating all data and doing so correctly, said Goldston. Eloquii separates customer data into separate channels so it can retarget people by purchasing style.

Just looking at acquisition costs by channel can be misleading, she said. If it costs $50 to acquire a customer from paid search and $60 to acquire a customer from paid social, paid search might seem more efficient — until you consider that paid social generates higher-funnel customers at a cheaper cost.

Deep Dive: Amazon strategies

For Eloquii, one of the best ways to acquire new customers is through its physical stores. The company is opening up its sixth retail store next week. Physical locations can be costly, especially if they are in expensive cities. Eloquii gets shoppers’ emails and then retargets them through email marketing. The idea is to stay top of mind to customers that live near physical stores, reminding them that those stores are an alternative to online shopping.

“When a store goes up in a key market, we see a lift in that overall market,” said Goldston.
Digiday Top Stories
  • Member Exclusive
    How DTC startups fall flat in marketing their values

    Direct-to-consumer startup founders have found themselves in a number of unprecedented situations over the past three months -- from having to keep their company afloat while stores were closed to having employees confront them about racism within the company. Many of these same startups have also found themselves in hot water for how they responded to these situations. The issue at hand is simple: customers feel like these companies aren't practicing what they preach.

  • Member Exclusive
    As cities reopen, the DTC store strategy is changing

    For digitally-native brands, Soho has often been the first place for digitally-native startups to open stores. Now, it's a ghost town, and is indicative of the challenges DTC brands will face going forward in plotting out their physical retail strategies.

  • Member Exclusive
    As calls for improving diversity increase, many VCs are silent

    Over the past two weeks, there's been a flood of direct-to-consumer startups issuing statements about steps they will take to better support the black community, and build more diverse companies. But venture capitalists have remained largely quiet.

  • Member Exclusive
    The most important thing DTC startups can do is build diverse companies

    DTC startups have responded to protests over the past week through social media posts and donations. Now, the focus needs to shift to building diverse companies.

  • Member Exclusive
    The coming months will make or break the DTC boom

    Over the past two months, digitally native startups have been some of the biggest beneficiaries of store closures. But, they're going to have to contend with more competition as stores reopen.