Categories
Uncategorized

3 underrated eCommerce “Profit Multipliers” that needs your attention RIGHT NOW! (short, crisp, and to the point)

It's very common to see eCom brands and marketers usually focus on bringing more traffic when they need more revenue.

But there are some other factors which can easily help in increasing the revenue.

Those factors are 👇

  1. Average order value
  2. Purchase frequency
  3. Number of customers

Let's take an example

Customers: 1000

AOV: $50

Purchase frequency: 1.05

By multiplication, revenue is $52,500

Let's improve each factor by 20%

Customers: 1200

AOV: $60

Purchase frequency: 1.26

Multiplying revenue is $90,720

We just increased revenue by 72.8% after analyzing and improving each factor by only 20%

I see 90% of eCom brands & marketers focus mainly on bringing more traffic with the help of organic & paid ways.

Instead, we should focus on 👇

  1. Which factor moves the needle most at the moment?
  2. What's that low-hanging fruit which needs fewer efforts for improvement?
  3. What's that 20% factor which will give us an 80% of improvement in revenue?

So it's always good to take a broader approach, analyze data, find loopholes and improve it.

So don't just focus on only testing interests, creatives, ad structure, ABO, CBO, attribution window, detailed targeting expansions on/off, automatic/manual placements, and all those factors.

Definitely, these all are important. But are they really going to help you in solving the real issue?

It's always easy and better to optimize existing factors before focusing on new traffic.

What do you think?

submitted by /u/ratnaraj007
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *