How to prioritise for revenue.
Revenue should be your only goal in eCommerce. We help clients set those targets and often we then work out a way to get there. You have to work out the best avenues for achieving those goals, whether through ads, traffic, devices, or improved UX. If you are adding things to your site, make sure you calculate the consequences of doing so. We’ll be running an eCommerce webinar soon to help you understand these things a little better, so stay tuned.
What I learned
- Revenue goals focus your mind.
- What’s your best avenue for growth?
- Why you should be careful about adding things to your site.
- Interested in our webinar? Stay tuned.
Transcript
Hey, welcome back Rankers. Here you go. I’ve had a fun week. A client reset our budgets for us, which is always fun. And these are our revenue budgets, our goals. So, last year for this particular client, we were bouncing around the 300 mark, around there, and the client said to us, “Okay. The next goal is 400, get us to 400.” So we did that a few months ago earlier this year, late last year, something like that. And then just recently we’ve said, “Okay, we need a new goal. We’ve hit that revenue.” They said, “Okay, let’s do 500 by December.” And we go, “Let me think about it.” And the staff go, “What?” And then we go, “Let’s have a think about it, let’s have a think about it.” And we look into it. “Yeah, we can do it.” And then he said, “Okay. And then by June 2021, we want 600K a month.” That’s like, “Okay. Tell me, how are we going to get there?” But we’ll work out a way.
What’s the best way to get a return?
And that’s what this is, and what we do is all about. It’s like, “Well, how much traffic do we have? What’s the traffic converting at? Is all the devices converting like they should? Is one channel stronger than another? Do we need to get more traffic? Or is it just usability? Or is it the ads aren’t working properly?”
In the case of this particular client, his ads are doing around a two and a half thousand percent. They’re maxed out. He’s not spending any more on ads. He’s kept that budget, even though he could get more from ads, and that’s his decision, which is fine.
I had another client come to me during this week and he said, “Look, here’s a product. The vendor has said they think we’ll make about 200K extra a year using this product.” But I looked at it and I went, “Well, it’s costing around 40 or 50K a year. Is that the right use and time to get that return?” Because with this particular client, they’re already a 100K up a month on last year, which is a 77% increase. So maybe there are other things that we can do, and I know the other thing you can do to get that 200K. And with all of these things, as I said last week, you’ve got to look at, if I put that thing on my site, what’s the unintended consequences of that, or what are the other impacts around that, that we don’t see on other areas of the site? All things like that.
So what we’re doing, we’ve had quite a bit of interest from this when I talked about it last week, is we are going to be doing a webinar. Haven’t done one for years, not a workshop, just a webinar, if people are interested in a workshop, we can get to that. But it’s just a webinar at this stage for retailers, eCommerce people who are interested in working out where they start to focus on revenue.
Ecommerce webinar
So we have it, internally we call it a revenue triage, essentially. Where are the biggest opportunities? Where are the biggest problems that we need to fix straight away? And quite often there’ll be things, speed is always in that. There’s a whole bunch of things, and I saw a new site launch today, an eCommerce site launch, and I’m thinking, “That’s cutting edge design? It’s like they like losing money with that site.” And we can see it straight away. And these are things that we’ve established through mystery shopping and all those sorts of things.
So we’ve got a whole raft of templates and stuff that we look at, that we know make money for our clients. So that’s the sort of stuff that we’ll be sharing, but it is retailers only, it is eCommerce only. And as I’ve said before, we don’t take everyone on board. So if you attend this webinar, chances are you’re not going to be our client anyway, because we wouldn’t be ready for each other. So, but it is for people who want to get an understanding of where to start looking at their revenue and how they give that a focus through the eCommerce site, and I will take you through the steps that we go through so you can maximise your revenue.
Hopefully that’s helpful. Share if you dare. Make sure you subscribe, so you get the date when we announce the date of the webinar. Please tell your friends, and follow us on LinkedIn and Twitter and wherever else you hang out. Not much on Facebook. Thanks very much. See you next week. Bye.
Jim’s been here for a while, you know who he is.
