As an online store owner, revenue growth for your eCommerce is often your main preoccupation. If you’re feeling like you constantly have to put efforts to attract new clients, you are not alone. Many webstore owners are in the same boat and we would argue that this constant yearning for customers is natural for any entrepreneur.
However, in the competitive world of eBusiness, constantly trying to keep up with the hustle can leave you feeling like you’re just another online store owner trying to run the rat race. Hustle culture fails to disclose that constantly being in hustle mode requires a ton of time, energy, and has the potential to wear you out.
Moreover, as a webstore owner you don’t get paid for your resources spent on sunk costs, marketing, and nurturing leads, as well as offering post-purchase service. You should always keep your options open for when opportunities to increase online store revenue present themselves, but you should aim to do it using the following smart ways:
- Get more clients (the smart way)
Getting more clients is the first option most people think of when they want to increase revenues. However, any seasoned entrepreneur knows that this is the hardest way to achieve growth. It requires investing heavily, with money and time, upstream in the sales funnel with hopes that these investments trickle down to conversions which lead to sales revenue. Still, considering the costs, your profit margins run the risk of remaining low at this step if done the hard way.
Thankfully, in this day and age, marketing research shows us ways to work smarter, without the sweat and tears. Findings demonstrate that shifts in consumer behavior, paired with emerging technologies, and fierce competition from major eCommerce players have enabled niche segments to take over the mass market.
Hence, the smart way to conquer new clients nowadays is to target a niche in which you place yourself as the go-to option. Thanks to the advent of marketing and product personalization, many online businesses are conquering niche segments which have usurped the mass market. With these sales and marketing tactics, you reduce the necessary efforts required to fish out of the pool you’re casting your net into, and by appealing to the uniqueness of your offering, you secure higher conversion rates down the line.
Also, perhaps a more long term consideration, the shift to an omnichannel strategy will open more sales channels and impact the following steps by also increasing the points of contact with the customer.
- Sell more to your clients
Selling more to your actual clients in order to increase revenue can be achieved mainly through two ways. Indeed, you will need them to buy more, either in number of items per transaction or frequency of purchase. In any case, reaching this goal will need less resources upstream, but might require more in the middle or at the end of your sales funnel. Nonetheless, as a first step, the journey on your webstore must be smooth and effortless from homepage to check-out.
Then, increasing number of items per transaction can be done once customers have embarked on their road to complete their purchase. Supporting product changing options on your webstore can give a touch of modernity to customers who are used to choices, as well as further growing your basket of revenues. Indeed, including product packages can help you not only win over the budget-conscious customers, but also poses as an elegant way to encourage them to buy more items from your online store. This, in turn, contributes to your cross-selling efforts. Moreover, customers will be able to use the option to upgrade their original choices, thereby contributing to the success of your upselling strategy, which in turn will impact the following step. These relatively advanced features are important considerations when choosing your eCommerce platform for an assured seamless user experience.
Before heading to the next step, it is important to mention that you can incite the increase of purchase frequency as strategy to increase revenue by leveraging earned customers. Tactics to do so include email marketing, retargeting ads, loyalty programs, and many more, as enumerated by the marketing and data tech giant NextRoll Inc. Again, it requires less resources to retain customers than it is to acquire new ones.
- Charge your clients more
Despite seeming like a cheeky idea, you must know that the way this step is approached is crucial to reach your goal of increasing revenues for your online store. Consumers are more informed than ever and charging them more than what the market dictates for the sake of charging more will backfire. In order to succeed at this, you need to create value in the eyes of the customer. This step takes off ideas that were presented in the previous one where you maximize potential of earned customers, but this time, instead of pushing it onto them, you respond to their demand.
The best way to respond to this demand is to look for what your customers are willing to pay more for, and what will require the least resources for you to give it to them. Indeed, Millennials are nowadays willing to pay a 20% premium for the opportunity of personalizing their product. Not only does the appeal of uniqueness speak to the largest living generation, but offering product personalization is known to yield higher conversion rates and reduce the costs of inventory as the majority of them now expect some form of personalization.
As you can see, getting more clients, selling more to them, and charging them more are indeed three ways to increase revenue for your eCommerce. However, one of them is more optimal as it requires fewer resources. Offering product personalization has the potential to dramatically increase your revenue with a little technological tweak to your online store. Featuring product personalization will allow your company to differentiate itself and grow your eBusiness, so take the time to make proper considerations before moving forward with it. In conclusion, it is all about working smart over hard!