400% revenue growth on mobile

I’ll be going into greater detail about my revenue model when I present at this year’s Retail Global event in May on the Gold Coast, but for now I’ll remind you of what you should be focusing on in your retail business and update you on the client we’ve been tracking with data.

What I learned

• Does a revenue model suit your retail business?
• Can you adapt quickly to changes?
• Our client made an additional $120k in March ($100k on mobile)
• Why we buy a lot of traffic
• When was the last time you reviewed your mobile traffic?

Transcript

Hey, welcome back Rankers. As I told you last week, at Retail Global end of May on the Gold Coast retailglobal.com.au, I’ll be showing how we do a lot of this revenue stuff and revealing the actual steps of how we’re going to meet extraordinary numbers. Excuse me while I play with my microphone. You can’t see that, but wires are all over the place.

I’m only doing it at that workshop, so there’s not going to be any open presentations where I’ll be telling people exactly how we do this, and the reason for that is that it’s too valuable. I’ve given a lot of stuff away over the last 20 years and I’m not giving this away. So if you do want to be part of that, there are definitely limited seats. I don’t know how many are left. I know we’ve sold a few and so if you want to be there, and then get across to retailglobal.com.au.

But I just wanted to show you more about the sorts of things you can be doing, or the sorts of things you need to be looking at or focused on in your own retail business. As I’ve said before, this doesn’t suit every retailer, right? And the reason for that is a multitude of things but usually it’s organisational in structure, meaning that the organisation can’t cope with the change that’s required to come from within to make these things happen quickly, and to give them a focus.

Usually, there’s a lot of other competing ideals. Now you might say, “Well, surely revenue is the most important thing to most businesses.” No, you’d be surprised. It’s not. There are other things, other competing interests inside the business. So this is specifically geared for organisations that as I said last week are a bit agile, can move quickly. So really, we’re looking for another two or three clients to go onto this model for the time being. So we’re not looking for high volume, so I’m not doing the speaking gigs that get lots more clients doing this at all. Not at all. I do it ’cause I enjoy it.

So I just wanted to show you … It’s been … We’ve got a month’s worth of data now for our client that was shall we say, not small potatoes but small items, right? So he sent his first month of data. Now, this was the guy who had … was running one of the AI search products and it wasn’t quite getting … It was only getting about 300% return on his ad spend which for the size of items that he was selling, is not high enough, you know. 1 or $2 items.

But we’ve got a month’s worth of data in now, and it’s interesting that we haven’t seen necessarily uniform changes or growth across the sites that we’re doing this to. We’ve seen growth in different areas, probably depending on the nature of the products, the person who’s buying and what they’re buying.

So in this case for instance, the mobile order value has gone from $16 to $32, but the desktop, pretty much it’s on par, a bit better. 48 to $105 where the baskets are. Now, the traffic once again, desktop has smashed it. Mobile doubled. Sorry, the conversion rates have smashed it, mobile doubled.

We’ve got transactions here, yeah, but the transaction growth is very similar. We’ve got this uniform growth across this one, where you’re not likely to say, “Oh well, this one’s outperformed mobile’s app from desktop,” or whatever. That’s not happening in that one. I mean, great results obviously. The client’s very happy. But incidentally, this is only around 650% of generated spend at the moment, so it’s got a ways to go. So some improvement to be made there.

This is the other one that is a bigger ticket item and this was interesting ’cause I wanted to see where the revenue had come from, and primarily what you can see … We’re 65% up on revenue last year, which is about $150,000, something like that, and most of that’s basically come from March, that extra 120,000. And that extra 120,000, basically 100,000 of it purely on mobile.

The main source of growth has been mobile devices, not desktop at all. I mean desktop, look at this. Desktop traffic’s up 10% and the revenue’s only up 5, and here we’ve got mobile up 51% but revenue … I mean, you would expect mobile to be up. The reason it’s up that high, and you might think, “Oh, a strong base.” Well no, the reason it’s up so high is we’ve bought a lot of that traffic.

They were losing a lot of that mobile traffic previously because they weren’t buying it. On mobile devices, you are going to lose it, right? You’re not going to get the amount of organic market share on a mobile device ’cause quite often, a lot of the searching, all that is on the home page for Google is actually ads and that’s the nature of it. That’s the reality. That’s what it is.

And overall, e-commerce conversion rate up is great but I mean the big winner once again is mobile, 77% conversion rate but even, like across the board, the changes that we made have greatly affected the conversion rate across all devices.

This is the difference with this one with the basket sizes and … you can see here. So the mobile basket size is up 25% to $846 but the desktop basket size has dropped to $724 year on year. So we’re now getting a much higher spend at a transactional level on the mobile device, which is not something intuitively I would have thought as I’ve said before would ever happen.

But the mobile revenue, you can see the big difference is there. It’s fairly stark. So what I would say to you from learning this information … What’s this client? This client has got what percentage of mobile traffic? Well you know. See mobile is over half now. So 53% of this client’s traffic comes from mobile.

So go and have a look at your traffic. How much of it is mobile? And when was the last time you looked at your site on a mobile device? Go have a look. Anyway, if you have any questions about the workshop in May at Retail Global, where we’re going to talk about this sort of stuff and how you do it, hit me up.

The book’s coming out, Get Stuffed Google, and of course if you like the show, please subscribe on YouTube. Thanks, bye.

Jim

Jim’s been here for a while, you know who he is.