Should I allocate more budget to prevention or recovery?

As an e-commerce founder, I'm constantly wrestling with a critical strategic dilemma: where should I invest my limited marketing resources? Every dollar spent preventing customer loss feels like it could be a potential game-changer, but recovering abandoned carts and re-engaging lost customers also seems crucial. My current conversion rate hovers around 2.3%, which means for every 100 visitors, I'm losing potential sales from 97 people. That's not just frustrating—it's financially painful. My ad spend keeps climbing, but my return on investment remains stubbornly flat. I've tried generic discount codes, but they feel scattershot and unprofessional. I need a sophisticated approach that doesn't just throw money at the problem but intelligently targets potential lost sales. The real challenge is understanding which visitors are truly worth pursuing and which are unlikely to convert no matter what. I'm looking for a strategy that respects my brand's positioning while creating genuine urgency and personalized incentives. My gut tells me there's a smarter way to convert hesitant shoppers without devaluing my products or seeming desperate.