Where Do Online Marketers Get Their Customers?

The following applies to Customer Acquisition, what many Network Marketers seem to forget to DO (typically male, btw, yes … my gender).

B2b and B2C StatsDoesn’t it behoove those who want to sell products online, to find out exactly where the action is happening for retail?

I was surprised at how well Facebook did for retailing. Clearly, focus should be in that area, too, besides your blog. (You do have a blog, right?)

For those not familiar with the marketing lingo of B2B, B2C, and B2B2C, they mean, business to business, business to customer, and business to business to customer. (The later is a recent model where 2 businesses align together for the same customers).

When all is said and done, Customer acquisition cost averages $22 per customer. For us in Youngevity, that may mean giving away a full bottle of Body Balance. I just gave a bottle away to a local friend, and asked him to try it, no obligation. I told Harold it’s a week’s supply, and make sure to drink 4oz a day. He followed, exactly.

One week later, he noticed an increase in his physical energy, and his intellect (which I find common … if I see a stupid and/or lazy Youngevity distributor, I know they’re not drinking their Body Balance!).

He ordered 8 Bottles of Body Balance on Autoship. (Sometimes I wonder if some Youngevity distributors really understand the marketable products we have, and what a blessing that is.)

OK. Now for the data. The following is written by Sara Davidson, at HubSpot.com

customer-generation-data“Time and time again, we get asked for benchmark data, particularly about customer generation. Well, you may remember we recently launched our 2013 State of Inbound Marketing Research Report, and we used the mounds of research there to try to, you know, “give the people what they want.”

And the people want benchmark data.

I broke down survey responses about customer generation through the lense of simple demographic information — B2B versus B2C, industry, company size, and company location. If you don’t see your business type or industry represented below, though, let us know — we did our best to grab as much data as we could, but we know we can always do more! I hope this helps you get a little bit of an understanding of where others in your space are with customer generation via different inbound marketing channels.

Part 1: Where do we get our customers?


Notable Findings: Taking a closer look at how primary sales channel affects where we get our customers, it looks like B2C companies dominate customer acquisition — 70% said they acquired a customer from a Facebook lead, for example. However, B2C companies do struggle to find customers through LinkedIn with only 22% responding that they did acquire a customer there. (I don’t think that finding is too shocking, though it’s encouraging that 22% of B2C companies do acquire customer there!) Conversely, B2B companies find a lot more customers through LinkedIn than B2C companies (53% vs. 22%). It is interesting to note that most business types had the same ability to acquire customers through a blog, around 40%-50%.


Notable Findings: With respect to industry, the Retail/Wholesale/Consumer Goods industry ranks the highest for acquiring a customer through Facebook with a ‘Yes’ response rate of 73%, while the Banking/Insurance/Financial Services industry struggles the most (only 33% of respondents said they acquired a customer through Facebook). As expected, marketing agencies do a phenomenal job of using LinkedIn for customer acquisition (58% ‘yes’ response rate) whereas the Retail/Wholesale/Consumer Goods industry only had a ‘Yes’ response rate of 19% for acquiring a customer through LinkedIn. The Technology (hardware) industry dominates customer acquisition through the company blog and Twitter — 55% said ‘Yes’ to acquiring a customer through their company blog, and 50% said ‘Yes’ to Twitter.


Notable Findings: Smaller companies have greater success than medium-size companies (who have greater success than larger companies) in terms of number of customers acquired through Facebook. Following the same pattern seen in Facebook customer acquisition, small companies have the highest rates of customer acquisition via the company blog versus medium- and large-size companies. Medium-size companies do the best on LinkedIn for customer acquisition, with 47% of respondents saying they had acquired a customer through this channel. Large companies have an extremely high rate of Twitter conversion with 60% of respondents.


Notable Findings: When comparing customer acquisition rates between the U.S. and the rest of the world, it appears that LinkedIn and Twitter are better channels for customer acquisition in the U.S. than abroad, whereas Facebook and Google+ are stronger conversion sources abroad than in the U.S.

Part 2: What is the average cost per customer?


Notable Findings:

  • B2B has a higher cost per customer than B2C and B2B2C.
  • The Banking/Insurance/Financial Services industry has the highest cost per customer ($303).
  • The Retail/Wholesale/Consumer Goods industry has the lowest cost per customer ($22).
  • Small and medium-size companies have similar costs per customer, but large companies have significantly higher costs ($425 versus $128/$150).
  • LATAM has the lowest cost per customer ($49) whereas EMEA has the highest ($252) with the U.S. not lagging far behind ($184).

Part 3: What is the average percentage of leads your company converts to sales?


Notable Findings:

  • B2B2C has a higher sales conversion rate than B2B or B2C.
  • The Mining/Construction/Energy industry has the highest conversion rate (39%), followed by the Healthcare/Pharmaceutical industry (30%), and the Retail/Wholesale/Consumer Goods industry (29%).
  • Small companies (27%) have higher sales conversion rates than medium- (24%) and large- (25%) size companies.
  • The U.S. and LATAM have the highest sales conversion rates by region (26%), followed by APAC (25%) and EMEA (24%).

I hope this gives you a good start at understanding how other inbound marketers like you compare in terms of customer acquisition. And of course, leave ideas for what else you’d like to see more information about in the comments.”

– Sara Davidson


Where Do Online Marketers Get Their Customers? by
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Wayne Gerald

MLM Productivity Expert at Purium
Wayne Gerald is a MLM Productivity Expert, Copy Writer, Web Designer, and Network Marketer. He opened Japan Neways, and built an organization of 100,000 distributors resulting in 8M in sales each month. After that, he was #1 Top New Volume Producer in Life Force International. Today, he's building his last empire with Purium whole-food superfoods. His mission is to help the "little guy" (M/F) build a great lifestyle, where family health and wealth can be passed from generation to generation.

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