We have identified the following simple ways to grow your business and we are happy to share our observations with you:
1. Increase traffic - can be achieved by advertising more. Requires investments into SEO, PPC, referral or affiliate programmes, e-mail or social marketing. Increases the turnover, might slightly reduce average conversion rate but provided average order and average conversion rate remains reasonable and results into increased turnover and profit.
2. Improve conversion rates - can be achieved by improving the content of the site, improving its design, usability and functionality, and of course watching your competition and making your prices reasonably competitive. Requires additional development and analysis, but once done - increases turnover and profit, overall profitability of the business, naturally improving conversion rate without additional investments into advertisement. You basically start to get more business out of the same customer audience that you had before.
3. Increase average order amount - can be achieved by running special deals, promotions, offering bulk discounts and packs or kits where several products would be purchased together and therefore cheaper. Requires additional development but once implemented - increases turnover slightly decreasing profitability of the business but the actual money in the bank will increase anyway.
4. Improve returning customers rate - can be achieved by introducing regular communications with your customer base, sending special offers to existing customers, implementing the loyalty and referral programme. The main thing to keep in mind is the cost per acquisition: the more orders you get from an average customer, the lesser it costs you to acquire that customer in the first instance. The same as with #3 above, increases your turnover and net profit, slightly decreasing average profitability of the business but at the same time saves your marketing costs.
At Holbi we have worked with hundreds of successful eCommerce clients from all over the world improving their online businesses, and would be delighted to discuss how exactly we could help improve yours. Just get in touch by filling in Holbi’s Contact form and our trusted Business Development professionals will be at your service