Post isolation revenue goals

by Jim May 28, 2020

What I learned

  • Australia is back for busines
  • How to set an eCommerce goal
  • Is your business underperforming?
  • Focus on revenue, not rankings

Transcript

Hey, welcome back Rankers. How are you doing? Things are picking up. Ah, we’ve got clients coming back on board, lots of sales inquiries. It looks like Australia, at least, is back for business. Just … I don’t understand this. I have some theories, but I’d appreciate yours. For some reason since Australia came out of isolation we’re searching for underwear, like never before. I think it’s our own underwear. It could be someone else’s underwear, I don’t know. Well, I could know if I delve a bit deeper, but it’s more fun if you go and delve a bit deeper. But to give you some perspective on this, so if you are in the fashion world, this could be a good sign for you. Maybe we start at the underwear and we’ll move up, but there’s a lot of things. Shoes is back up, not to where it was, but underwear? This is the previous peak in the last 12 months, which is Christmas, Black Friday. And look at it. Through the roof. Anyway. I thought that was funny.

Goal setting

I wanted to talk to you a little bit about setting goals. I’d like to know how you do it as an eCommerce site. So for us, it will vary by client. It used to be back in the day when we were just doing SEO 15 years ago, it used to be a variety of things. It used to be keyword ranking. It used to be traffic. It used to be … These days because we have a holistic approach and we use digital mystery shopping, and we’re trying to increase revenue, not just rankings and traffic, our goals that we set for the clients are very different, and each client is different. And some don’t realise the potential. Some will say to us, I don’t know, “20% growth?” And we go, “Yeah, and the rest.” Because some of them are so underperforming. And that is the case with a lot of eCommerce sites, but I’ll just give you these examples.

So we’ve got this first client, they are only getting a 250% return on their ad spend. So $2.50 for every dollar spent. So their goal is a thousand percent return, and they wanted to see a 20% year-on-year growth of revenue. We’re six months in, and we’ve spent actually 20% less. We’ve made an extra 70%. So it’s over 300K extra that we’ve made for spending that less. The return is at a thousand percent, and year-on-year we’re at 40% over. So for us to set that goal is so that we know what we have to beat. And if we’re focused on other metrics like traffic, then you’re not going to see that, because all you’re doing is getting traffic and you don’t care what happens to the traffic. This other client, they are a really old business, established 1960s in Australia, manufacturer, they wanted to … their ads weren’t performing terribly, but they wanted to see that perform better.

Focus on your revenue

And they wanted to see 60% growth, year-on-year. Because they’re a very old company. The website didn’t necessarily reflect a major part of the business, but that’s because it had been neglected. So basically the 60%, we’re now at 160% of revenue through the website from last year. Well, we’ve reduced their ad spend by 13% and we’ve made an extra 1200%. So, if we didn’t set that goal though, we probably wouldn’t achieve that. And it’s because when you set those revenue-based goals, you find things that ordinarily you wouldn’t find, things that are stopping the sales. I’d love to know how you set your own growth goals for your eCommerce site. Always looking to learn, and if there’s something I’m not doing that you’re doing, I’d like to know what it is. Thanks very much for your time. And we’ll see you next week. Don’t forget to like share, subscribe, all those wonderful things. See you soon. Bye.

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

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