G’day

Today I was talking to one of my newer clients about something that sparked a bit of a rabbit hole for me.

If I had to increase the revenue of an ecom store INSTANTLY, what would I do?

So here’s what we’ll be diving into today

• 3 ways to instantly increase ecom revenue

• How A/B testing could make you $100K+ in a year

• The email of the week

Let’s get into it!

Insight Of The Week

3 ways you can instantly increase your ecom stores revenue

The reality is, at any one point there is most likely multiple levers that you can pull to start making more money in your ecommerce store.

If you think about the renowned ecomm “formula”, which is;

Traffic x Conversion x AOV = sales

We have 3 variables that contribute to our ability to make sales

• Traffic

• Conversion

• AOV

If you increase any of them, you instantly make more money.

The issue is, among the million other things that happen day-to-day when running a store, there is a lack of clarity behind what levers are actually available to be pulled.

We won’t be covering anything about traffic today, as it’s quite nuanced and is more complex than just “more traffic”, you need to be able to add more quality traffic, at scale.

So assuming traffic is consistent, what can we do to increase sales?

1. Increase AOV at checkout

An easy way to increase AOV is to integrate an easy to use cart/checkout upsell app.

These are apps that plug in with your shopify and provide offers relevant to that customer whilst they’re in their cart or at checkout.

If someone is already committed to purchasing, they are as warm as they get. They are usually also full of dopamine and ready to spend some money (at this stage, they’ve also usually mentally parted ways with a particular sum of money). So we’d be silly not to try take advantage of this by offering upsells in the cart.

Now the caveat here which many people fail to consider, is the cost of acquiring this customer is now a “sunk cost”. Perhaps we spent $20 on ads to acquire this customer. We’ve already spent this, regardless of if they add more to their cart. So the next items they add, we can offer a discount on. This can become a win-win, as they get more items at a discount, and we can increase AOV without sacrificing much margin as there is no further cost to acquiring these customers (as we’ve already spent the money).

2. Increase AOV by email

I’ve been experimenting with making the very first email that fires post-purchase an upsell. Below is a brand I saw doing it quite well.

This is a fantastic way to prompt people to purchase more, while also adding urgency. People are also most likely expecting some sort of confirmation email, so this is a great way to get a high amount of opens and to display your offer.

3. Improve CRO

I would begin making some changes to my website to improve CRO.

If you’re conversion rate is currently 2%, and you increase this to 2.2%, you’re making an extra 20 sales per 10,000 website visitors. This might not be much, but at an average order value of say $75, it’s an extra $1,500 or $0.15 per visitor.

And the reality is, many stores have a ton of quick fixes they could make to improve conversion rate, things like;

• more social proof/reviews

• faster loading speeds

• better risk reversal (money back guarantees etc)

Then even higher level stuff like landing page design, there are a ton of good templates available online or just go and copy your best competitor.

That’s all for this, more stuff like this to come soon.

Top Links

• How this ecom store added $150K in 90 days - Case Study (Video Link)

• Why you shouldn’t “oversegment” (Tweet Link)

• Online Grocery Store in Australia increases ecom sales by 29.2% (Article Link)

Actionable Tip Of The Day

Start A/B Testing as often as you can make conclusions.

What do I mean by this?

If you have enough traffic to create, run, and conclude an A/B test in 2 weeks, start another one straight away.

If testing a flow allows you to take your click rate from 1% to 1.1%, it might seem minuscule. But that is 10% more clickers.

Even if you go from 1% → 1.01% , doing that twice a month over the course of a year leads to 24 improvements. You’ve now increased clickers on that email by 20%, and you’ll see a similar increase in revenue if all else equal.

So every Friday (or whatever day you can find an hour or two of free time), block out some time to create & analyse A/B tests.

— Angus Cowan

How I Can Help You

Looking for additional help? Here’s where to look:

• Free videos on YouTube

  • I’ll be making a TON of content on YouTube this year. If you’re someone who enjoys videos, be sure to check it out and stay tuned for practical Email Marketing help.

• Follow me on Instagram for regular short form content.

• Book a scope call - We’ll dive into your current situation and see if there is an opportunity for us to help you. At the very least, we’ll give you an action plan.

Sponsor Of The Week: Mailtimers

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Next time you’re running a sale, product launch, or other event look no further than Mailtimers.