If You Can’t Measure it, You Can’t Manage It
In a previous article, we talked about the need to actually sit down and read your website’s analytics on a regular basis. This article expands on that idea, and describes in more detail just what type of measurements you can take on a website’s performance, and how to use those metrics to increase profits.
Sales, Sweet Sales…
The primary goal of any business owner is to get those sales up, right? Sales are where the money comes from, whether you’re selling web services, jet skis or macramé supplies.
In order to increase your sales, you have to understand your sales. Let’s get measuring, shall we?
Start With the Grand Total
First and foremost, look at your overall sales and compare that to both past performance and future goals.
How’s your trajectory? Is it anywhere near where you want it to be? Have you hit a slump or outdone yourself?
Where do Your Sales Come From?
Next look at which lead sources are producing the highest returns.
Hopefully you’ve designed the various publicity routes you are using to be trackable. Analyzing them side by side – magazines, online videos, different landing pages, emails, organic searches, paid advertising, etc. – will show you exactly where your invested dollars are paying back the least, and the most.
What are you Selling?
Looking a little closer, notice which specific products and services are getting the most closed deals. Put more energy and emphasis there and watch your checkbook smile at you in return!
What’s Your Average Take per Sale?
First average out your revenue per sale. Then figure out how to raise that number.
The average upsell conversion is 4%, although experts argue that upselling done “right” converts at about 60%.
It never hurts to ask customers to buy more. The worst thing that can happen is the customer will turn you down.
What would 4% do for your bottom line? How about 10%? Or 20%? Dream big…what about that 60% number? Wouldn’t that look pretty reflected on your P&L at the end of the month?
Keep Them at Home
Statistically, long term customers spend more money with companies than new customers do. They have a history of satisfactory purchases already through their shopping cart, and from those experiences have developed a positive relationship with your company.
In spite of this centuries old, customer relationship wisdom, many companies put far more energy into funneling in new customers than into maintaining ties with already-established customers.
- Solid value gets people to open their wallets and buy right now.
- Solid value + trust builds long term relationships, increased sales, and lots of word of mouth advertising.
You provide the solid value consistently, and customers will provide the trust in return.
Of course you still want new customers coming in the front door. But, quite honestly, you’ll need a lot less of them if you continue to deliver quality that keeps your current customers home and happy.
Stay in contact. Make sure you offer purchase gimmicks and discounts to current customers, not just new ones. And keep your product choices and development progressive.
Just like any relationship in any cross-section of society, in order for it to thrive, you have to take intentional steps to keep them in your thoughts, and you in theirs.
Business Psychologists have long called this Top of Mind Awareness, or TOMA. Be the one they think of when they want to buy.
In a later article, we will discuss some of the generational and societal developments that have fundamentally affected shopping habits. Stay tuned!