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The 4 Main E-Commerce Business Models preview image

How to Double CLV: 7 Methods From WooCommerce Sellers

Business Metrics

How to Double CLV: 7 Methods From WooCommerce Sellers
Customer Lifetime Value (CLV) measures how much time customers will spend with you over their lifetime, therefore tying in with customer loyalty—increased loyalty leads to increased CLV which ultimately leads to increased sales. Your e-commerce customer acquisition cost (CAC) is also closely linked to CLV, because you have to incur costs to reach and retain your customers. Together, these two metrics can provide a balanced view of your profitability because they're focused on long-term value and success. Below are seven methods you can implement to increase your CLV from WooCommerce sellers. » What is the ratio between CLV and CAC? Read this guide on calculating customer behavior 1. Create Engaging, Value-Adding Content No one has time to read pages and pages of content anymore. If you want to catch your target market's attention, your content must be engaging and strategically add value. Sift out all the unnecessary information and craft the remaining nuggets into short, sharp copy that tells your customers what they need to know, when they need to know it, without them having to look for it. This is especially important when it comes to your social media posts, newsletters, and emails. Every time you put content together, you need to ask yourself: What is the purpose of the content?Will it stand out from my competitors?Is the message clear? Customers will start to trust your brand, and CLV will increase. 2. Implement Cross-Selling & Upselling Strategies Upselling is selling a superior, more expensive version of a product that your customer already owns or is in the process of buying. Alternatively, cross-selling is selling products that are related to a product your customer already owns or is in the process of buying. These strategies are beneficial because: You're not searching for new customers—you're increasing the sales you receive from your current customersOverall customer satisfaction will improve—customers feel you're taking their needs into consideration by offering a variety of better-quality products The key is to not be too forceful. By offering value for money—a real deal that's hard to resist—you'll build customer loyalty and in turn CLV. » Want to implement an easy upsell strategy? Discover how one-click upselling can boost sales 3. Optimize Your Customer Service There's nothing more frustrating for a customer than inefficient customer service. Let's say you offer an upsell opportunity and it's a great deal. Your customer is caught hook, line, and sinker. They get to the payment page and there's a glitch in the system that stops them from processing their payment. They try to contact you but there's no answer, or the agent doesn't know how to help them. It's one way of putting a customer off for life. Make sure your customer service agents are always contactable, highly knowledgeable, and can offer solutions. It builds trust, shows that you're a professional business, and builds your customer loyalty and CLV. 4. Enable the Provision of Customer Feedback Customer feedback is an essential element in the customer's sales journey. There must be a platform where they can voice opinions and feel that their opinions are taken seriously. Not only that, but customers can give you valuable insights into substandard products or website glitches, which you may not have picked up on. Therefore, you must make sure that: The channel you offer for feedback is professional, user-friendly, and up-to-date.The customer's feedback is acknowledged—there's nothing more unprofessional than getting no response at all.You analyze the feedback regularly and make changes accordingly. Customers who feel important, and not cast aside once the sale has concluded, have a better chance of providing a higher CLV because they become loyal. 5. Develop a Subscription Model A subscription model is a sales strategy that requires regular monthly payments from your customers for specific, pre-defined products and services. It must be a win-win for both you and the customer to be effective. A subscription model is very effective when it comes to increasing your CLV because you know how much you can expect from customers and those customers are locked in for a period of time. It's an opportunity for you to show your customers how professional your brand is because they get what they want, when they want it, with no hiccups along the way—building trust and loyalty to your brand. 6. Reward Customers With Loyalty Programs Everyone loves a freebie or a good discount. If you show your customers that you truly appreciate their recurring business by implementing a solid loyalty program, you will keep them coming back, which will increase your CLV in turn. » Unsure how to start a loyalty program? Explore different apps for easy setup and implementation 7. Offer a Referral Program Similar to loyalty programs, referral programs must offer value to the customer to encourage them to engage. However, referral programs hold an additional benefit in that apart from keeping your current customers, you may gain many more. The details of the referral program can be changed and tested over time until you find what works best for your e-commerce store. Conclusion The bottom line is that if you treat a customer well, they will treat you well in return. Customer loyalty is a long-term investment that will continue to pay off and is worth devoting resources to. These seven methods will help you to reap the rewards of catapulting your CLV and seeing your bottom line soar.
How to Increase Your Shopify Conversion Rate

Business Metrics

How to Increase Your Shopify Conversion Rate
Conversion rate is a metric used by website owners and digital marketers to measure how successful a company's website is at turning visitors into paying customers. Why is this important? Conversion rate is important because it helps to determine how successful a company's marketing efforts are. A high conversion rate indicates that current marketing efforts are attracting interested prospects and persuading them to buy its products or services. Low conversion rates show that the company may need to re-evaluate the strategies they are currently employing. What Is a Good Shopify Conversion Rate? A very recent survey conducted on just under 4,000 Shopify stores shows that the average conversion rate for Shopify on all devices was 1.4%. The survey went on to reveal that a conversion rate of 3.2% would place a store in the top 20% of participating stores. While a conversion rate of 4.7% would land the store in the top 10%. How does this translate to the number of customers performing a desired on-site action? Well, a conversion rate of between 3-5% would mean for every 100 visitors, 3-5 people would make a purchase, sign up for an email marketing list, click on e-commerce ads, etc. Conversely, stores that experience a conversion rate of 0.3% or less were placed at the bottom of the 20% worst-performing stores. This means that the online store would have to attract 1,000 visitors to generate around the same amount of conversions as the top-performing stores. Are you integrating the power of ads in your marketing campaigns? If so, why not see how they are performing with ad trackers or by utilizing Google ads conversion tracking? How Conversion Rate Is Calculated The conversion rate is calculated by taking the number of converted leads, dividing it by the total number of leads, and multiplying the total by 100. For example, if 100 conversions were generated from 3,000 leads, the conversion rate would be: (100/3000) x 100 = 3.33%. Is IG important to the success of your business? Then it's within your best interests to learn how you can integrate effective Instagram ads into your Shopify marketing campaign. Reasons Your Shopify Conversion Rate Is Low There are various reasons why your Shopify conversion rate may be low. One reason may be that your website is not user-friendly or navigable. In other words, if potential customers find it difficult to browse and find their way about your online store, they are likely to become frustrated and leave as a result. Another possibility is that your website is not presented in a professional or trustworthy way. If this is the case, potential customers may be hesitant to make a purchase if they perceive your website to be disreputable. Aside from the look and feel of a website, you may not be targeting the right audience with your marketing efforts. With this in mind, it’s imperative you get to understand your target customer base, what their interests are, and which products or services they are most likely to purchase. If you are not reaching the right people, you will not see a high conversion rate. Learn more about this in our post about remarketing vs. retargeting. Another common issue that attracts low conversion rates is neglecting the need to provide accurate and concise information about your products or services. Potential customers need to know what they are buying and what they can expect before they make a purchase decision. If you can address these potential issues and provide your customers with solutions to their problems, your Shopify store will be a conversion powerhouse. Want to know the secret to increas conversions? To attract more site traffic, check out these potential ways how to increase organic traffic. How to Increase Shopify Conversion Rates A powerful method of increasing Shopify conversion rates is to adhere to CRO best practices. Conversion rate optimization, or CRO, is the practice of increasing the percentage of visitors who take the desired action on a website. One of the most effective strategies commonly used in CRO is A/B testing. A/B testing is the process of comparing two versions of a web page/email/or other elements to see which performs better. By testing different versions of your pages and elements, website owners and marketers can easily distinguish what works best and which factors are likely to be most effective at increasing conversion rates. If you’d like a helping hand to increase conversion rates, why not check out these 40 best conversion rate apps?
Your Guide to LTV/CAC Ratio in E-Commerce

Business Metrics

Your Guide to LTV/CAC Ratio in E-Commerce
The LTV/CAC ratio may have some meaning to you, but to others, it might as well be a foreign language. Whether you are familiar with these e-commerce metrics or have no idea what they are about, they can help you get a clear understanding of your customers' probable behavior, as well as how much it will cost you to maintain the relationships that you build with them. That's because the LTV/CAC ratio measures the relationship between the lifetime value of a customer and the cost of attracting that customer. LTV Is Your Customer Lifetime Value Your LTV predicts how much a customer will spend through a lifetime of interactions with your business. To calculate your LTV, you first need to look at your "churn" rate—how many customers cancel subscriptions in a month. Let's look at an example: if you have 500 customers and, on average, 5 cancel their subscriptions a month, your churn rate will be 1%. This will tell you how long, in general, your customers will keep their subscription. Next, you need to calculate your gross margin. This is the percentage of the profit left over after paying your expenses. Finally, you'll need a ballpark figure of how much money your average customer spends each month. Plug those amounts into this formula, and you'll get your LTV: (gross margin %) X ( 1 / monthly churn ) X (average monthly subscription revenue per customer) If a customer has a high LTV, they are one of your VIPs because they spend the most time with you over the longest period. CAC Is the Cost of Customer Acquisition In other words, CAC is the total cost you spend on marketing and advertising over a certain period to attract a customer. To calculate your customer acquisition cost, follow this formula: (total cost of acquiring a customer + total sales expenses) / (the number of new customers acquired) Examples of CAC include advertising, marketing, sales, training, employee wages, shipping, and taxes. How to Calculate Your LTV/CAC Ratio The formula for calculating your LTV/CAC ratio is: [(revenue per customer – direct expenses per customer) / (1 – customer retention rate)] / (number of customers acquired / direct marketing spending) Let's look at an example: Your e-commerce company spends $10,000 on an advertising campaign and gains 1,000 new customers. The average revenue per customer is $60, and the direct cost of filling each order is $40. Your company retains 75% of its customers per year. Your customer contribution margin = $60 – $40 = $20 LTV = $20 / (1 – 75%) =$80 CAC = $10,000 / 1,000 =$10 LTV/CAC ratio = $80 / $10 = 8.0 How to Analyze Your LTV/CAC Ratio The ideal ratio is around 3:1—which means that the value of your customer is three times more than the cost you paid to get the customer. You are spending too much if your ratio is lower, such as 1:1. On the other hand, you are missing out on business and spending too little if the difference is greater, such as 6:1. This ratio may seem simplistic to you, but the fact is that, as an e-commerce business owner, you need to know these metrics. Why are they so important? Because you'll have a better understanding of the bigger picture—which will help you drive sales and grow your company over the long term. Why Is the LTV/CAC Ratio Important for E-Commerce? Many good reasons, including: It accurately points out how much you are spending on marketing, sales, and customer serviceIt enables you to master your strategies and processes, which will lower your business costs and increase your profitsIt tells you exactly what your customers are worth to your businessIt helps you to focus on giving your customers what they appreciate mostYou won't be blindly throwing money at marketing campaigns and wasting your money How to Improve Your LTV/CAC Ratio To optimize your LTV/CAC ratio, you need to focus on lowering your CAC. Here are five ways for you to reduce your CAC: Spend less on paid adverts Paid adverts may work when you are building awareness for your brand, but once your brand is established, you need to cut your paid ad costs. Over the long term, these costs are too high.Launch an affiliate program These programs work well with e-commerce companies because they give you more control over your CAC.Be data-driven All your business decisions should be driven by your data so that you can increase your customer lifetime value.Segment your customers By doing this, you can target your spending more accurately and increase customer profitability. There is a nifty formula that you can use to analyze your customer profitability called a customer profitability analysis.Invest in search engine optimization (SEO) while the initial outlay is high, over the long term, SEO pays for itself many times over.Develop a sales funnel A successful sales funnel is an essential marketing tool that will tell you if your customer is in the awareness, interest, decision, or action phase of the sales process. This will help you to accurately tweak your sales strategies to optimize your growth and build a successful and sustainable business over time
What's a Good E-Commerce ROAS? By Platform and Industry

Business Metrics

What's a Good E-Commerce ROAS? By Platform and Industry
ROAS (return on ad spend) is a metric used to measure the effectiveness of an advertising campaign. To calculate ROAS, first determine your conversion value (the revenue generated from conversions). Then, divide this amount by ad spend. For example, if you spend $20 on ad spend to generate $100 of revenue, your ROAS is 5 or, as a ratio, 5:1. That’s $5 back on every dollar you spend on advertisements. For reference, if your ROAS is less than 1, you're running your campaign at a loss. Knowing your breakeven ROAS can help you avoid this. Essentially, the higher your ROAS, the better your return on advertising investment. What Is an Average ROAS in E-Commerce? An average ROAS for e-commerce is difficult to determine because it can vary greatly depending on the type of product being sold, the target audience, and the competition. Generally, the average ROAS comes in at 2.87, a ratio of 2.87:1, or a 287% return on investment. This average varies slightly across different industries. For example, baby products average at around 3.71, while health and beauty comes in at an average of 2.82. A higher average ROAS means that a business is generating more revenue from its ads than it is spending on them, while a lower average ROAS indicates that the business could be doing more to convert its ad spending into sales. Breakdown of eCommerce ROAS Per Platform A good ROAS ratio varies depending on the industry and platform. However, a good rule of thumb is that for most industries, a ROAS target of 3 or 4 is viewed as a reasonable return. This means that for every dollar spent on advertising, the business expects to generate a three or four times as much in return. Here’s a look at the average return on interest you can expect on various platforms: Google Ads Average ROAS: 13.76 Google is a very effective platform for advertising campaigns. Its large user base and sophisticated targeting capabilities make it an ideal platform for reaching a wide range of potential customers. Additionally, its low cost-per-click (CPC) rates make it an affordable option for budget-minded businesses. Facebook Ads Average ROAS: 10.68 Facebook is a powerful platform with a large user base, so it can be a very effective way to reach potential customers. Advertisers can target their campaigns specifically to certain demographics, and Facebook also offers sophisticated tools for tracking and analyzing results. Instagram Ads Average ROAS: 8.83 Instagram can be a great platform for running an ad campaign. The app has over 800 million users, and ads can be targeted to specific demographics. Additionally, Instagram offers a wide range of creative tools that can be used to create effective ads. However, it's important to keep in mind that not all businesses will be successful on Instagram. Before launching an ad campaign on the platform, it's important to do some research and make sure that your target audience is active on the platform. Amazon Ads Average ROAS: 7.95 Amazon can be a good platform for running an ad campaign, especially if the target audience is consumers who are already familiar with Amazon and its products. Amazon has a large user base, and its users are typically very engaged with the site. Twitter Ads Average ROAS: 2.7 Twitter can be a good platform for running an ad campaign, though it depends on the goals and overall strategy of the ad campaign as well as the target audience. For example, if the goal is to increase brand awareness among a general population, Twitter can be a good option. However, if the goal is to drive conversions or sales, other platforms may be more effective. Pinterest Ads Average ROAS: 2.7 Ad campaigns on Pinterest can be effective if the target audience is engaged with the platform. However, it is important to consider what type of ad campaign would be most successful on Pinterest. For example, if a brand wants to increase awareness of a new product, they may want to use a promoted pin campaign. TikTok Ads Average ROAS: 2.5 Some marketers believe that TikTok’s focus on user-generated content creates a more authentic and engaged user base, which could result in higher conversion rates. However, others claim that the short length of videos on TikTok makes it difficult to convey a clear message and that the app's young demographic may not have the spending power to make significant impacts on sales figures. How to Get a Good ROAS in eCommerce To run an effective e-commerce ad campaign and maximize your ROAS, you need to make sure that your advertising campaigns are effective when it comes to generating revenue and that you are spending your advertising budget wisely. You can do this by testing different types of ads, targeting the right audience, and optimizing your campaign settings. You should also track your results and analyze what's working and what's not so you can make adjustments accordingly. To help you maximize your ROAS, check out our effective e-commerce ads post.
How to Calculate COGS for Your Amazon Business

Business Metrics

How to Calculate COGS for Your Amazon Business
In order to be successful as an Amazon seller, you need to know your cost of goods sold (COGS). This calculation is essential for understanding your business profitability and determining your markup. In this article, we'll walk you through calculating COGS for your Amazon business. Formula for Calculating COGS The formula for calculating COGS is as follows: cost of goods sold = (beginning inventory + purchases) - ending inventory This equation calculates the total cost of all the goods sold over a specific period. As an example, let’s say during the commencement of the financial year, to stock your online store, you’ve purchased $5,000 worth of t-shirts. As the year pans out, you purchase an additional $7,000 worth of t-shirts to restock and keep up with projected demand. By the end of the year, you’ve sold all but $2,000 worth of stock. If this was the case, the COGS for your Amazon store would look like this: $5,000 + $7,000 - $2,000 = $10,000. What Is Included in COGS for E-Commerce? There are several expenses included in COGS, including: Procurement costs Procurement costs are the expenses associated with the purchase of goods and services. This includes the cost of the goods or services themselves, as well as any associated transportation, administrative, or inspection costs. Production expenses Production expenses are the costs of producing a good or service. These costs can include materials, labor, and overhead. Packaging, handling fees, and freight costs Packaging, handling, and freight costs are the costs associated with the packaging and shipment of a product. This includes the materials used for packaging, as well as the labor involved in packaging and transporting a product. Inventory storage expenses Inventory storage expenses represent the costs associated with storing a company's inventory. These costs can include the cost of the physical space used to store the inventory, as well as the cost of any insurance or security measures needed to protect the inventory. Listing fees Online product listing fees are a way for companies to list their products on online marketplaces, like Amazon. Taxes Any applicable taxes payable to governmental bodies as a result of running an online business. There are also some expenses that aren’t included in COGs, such as: Rent Rent is not included in COGS because it is not a direct expense associated with the production of a good or service. Utilities Utilities are not included in COGS because they are not direct costs of producing a good or service. Instead, they are indirect costs that are necessary for producing a good or service but are not directly related to the production process. Insurance The reason that insurance is not included in COGS is that it is a fixed expense. COGS are intended to reflect the costs of the goods that are sold, and insurance does not vary with the amount of product that is sold. Sales and marketing Sales and marketing activities are necessary for a company to generate revenue, but they are not directly related to the production of goods. Conclusion Calculating your COGS is an important step in understanding the profitability of your Amazon business. By using the methods described in this article, you can accurately track your costs and make informed decisions about how to grow your online business. To help you boost the profits of your Amazon, see our effective e-commerce ads post.
Customer Acquisition Cost in E-Commerce: How to Find Yours

Business Metrics

Customer Acquisition Cost in E-Commerce: How to Find Yours
Every business needs customers to survive and grow. Customer acquisition costs (CAC), or what it takes to acquire a customer, can vary greatly depending on the type of industry and size of your business. For example, a small business looking to acquire new customers might incur low customer acquisition costs, such as one-time advertising costs. Conversely, a larger company with more established brands might have higher customer acquisition costs, such as annual marketing budgets. Here, we'll provide an easy-to-understand customer acquisition cost definition, detail how to figure out customer acquisition cost, and define what makes a good CAC. What Is Customer Acquisition? The process of customer acquisition is best understood as the procedures, strategies, and tactics used to generate new customers. This encompasses all activities undertaken by a company or product to generate interest in its products and services. The CAC includes advertising, sales promotions, direct marketing, and advertising agency expenses. What Does Customer Acquisition Cost Mean? A company's customer acquisition costs will include any expenses incurred to generate a new customer, including advertising, sales promotions, direct marketing, and advertising agency expenses. Customer acquisition costs are important because they reflect the cost of generating revenue from a new customer. For example, if the revenue generated from a new customer outweighs the cost of acquiring them, a business' marketing and other outreach costs are worth the time and money. Conversely, suppose the cost of acquiring a new customer outweighs the revenue generated. In that case, it's either time to shake up the strategies a business uses to generate new leads or, perhaps, it's time the business concentrated more of its efforts and resources on customer retention by pleasing their existing customers. How to Calculate Customer Acquisition Costs In order to determine customer acquisition costs, an entrepreneur can use the following formula: CAC = [Total cost of acquiring a customer + total sales expenses] / [the number of new customers acquired] While the above formula is a great starting place, it's important to understand that a few key factors can influence these values. One of the main factors is customer lifetime value (CLV). The customer lifetime value (CLV) is the worth of a customer over the time they are with the company. The CLV would influence customer acquisition costs because the longer an organization can get a customer to do business with them, the cheaper it becomes to have acquired them in the first place. Expenses that Contribute to Customer Acquisition Cost There are various expenses that determine the average customer acquisition costs across all industries. These typical customer acquisition costs include: Advertising - Advertising costs are the expenses generated by promoting a product or service.Marketing - Marketing costs are the expenses that arise in the process of marketing products or services.Sales - Sales costs are the expenses incurred by the company to generate revenue.Training - Training costs are the total of all training personnel, equipment, materials, and facilities required to produce a trained staff member.Staff wages - Wage costs are the amount of money an employer spends to compensate employees for their work.Product shipping - Product shipping costs are the set of costs that go into sending an item to a customer.Taxes - Tax costs are the expenditures incurred by an organization to comply with the legal demands of taxation. Average Customer Acquisition in E-Commerce The average customer acquisition costs for e-commerce businesses vary between different niches and the size of an online store. Some of the larger guys, like Amazon and eBay, pay between $150 and $200 per customer. For smaller online stores, however, this figure is generally closer to $20 per customer. Basically, for a small to midsize business, you'll want to aim to keep your expenditure to revenue ratio around 1:3. To stay sustainable as a business, this means that for every dollar spent, your business needs to earn about $3 back. Customers and Their Costs Customer acquisition costs are always contextual, meaning that they are dependent on a variety of different variables and factors that will influence the overall costs to a business of acquiring new customers. Keep this in mind when managing your marketing and outreach costs. If it costs your business too much to acquire customers, this will soon become an unsustainable business model that is likely to fail. If your acquisition costs are high, it might be time to really knuckle down, direct your efforts elsewhere, and focus on fostering the relationships you have with your existing customers. After all, turning a one-time customer into a lifetime customer is not only much more cost-effective but also time-saving.
Advantages and Disadvantages of E-Commerce in 2022

Business Metrics

Advantages and Disadvantages of E-Commerce in 2022
Using electronic transactions conducted through the internet, the four business models making up the e-commerce industry are based upon transferring products or services directly from a vendor to a consumer with the help of modern tech and without ever having to visit a physical store or location. If you’re considering whether this business venture is a good fit for you, this article looks at the major benefits and drawbacks of e-commerce to help you make the right decision. Table of Contents Advantages of E-Commerce in 2022 i. Enhanced customer experience ii. E-Commerce benefits businesses iii. Businesses can target a global audience iv. E-commerce benefits the government sector v. Fewer overheads and more savingsDisadvantages of E-Commerce in 2022 i. No brick-and-mortar store to browse through ii. Shipping times iii. Shipping costs iv. No sales during a site crashAdvantages of Online Shopping During the COVID-19 Pandemic i. Many businesses were saved due to e-commerce ii. Customer confidence stays high, while infection stays low iii. Extended access to productsDisadvantages of Online Shopping During the COVID-19 Pandemic i. Disrupted postal services ii. Increased e-commerce fraud iii. Lower customer loyaltyIs E-Commerce Worth It Despite the Disadvantages? 5 Advantages of E-Commerce in 2022 1. Enhanced customer experience The advantages of e-commerce to consumers mainly deal with user experience and convenience. Not only can customers shop whenever and wherever, but they also have more options to compare products and prices. From reviews to detailed product descriptions, customers can access a range of information. Whether it be the convenience of shopping from home, the 24/7 availability, or access to a wider range of products that simply aren’t available downtown, more and more people are preferring to shop online over traditional brick-and-mortar stores. 2. E-Commerce benefits businesses While the benefits of e-commerce to consumers are clear, this business model can also work in favor of businesses. Not only can business owners scale their businesses quickly, but by improving and personalizing the experience that they offer their customers, they can ensure customer lifetime value and future sales. 3. Businesses can target a global audience Rather than being subject to the limitations of a finite localized customer base, e-commerce grants budding and established online stores the ability to reach an international customer base - meaning anybody with an internet connection is now a potential customer. 4. E-commerce benefits the government sector It’s not only customers and businesses that can reap rewards. Since the operation of e-commerce can minimize paperwork and make it easier to organize paper-based information, it also benefits the government sector. Increased resources and efficiency mean that delivering public services, like education and healthcare, is a more achievable outcome. 5. Fewer overheads and more savings No rent, no building or contents insurance, and fewer staff wages all mean that e-commerce stores are comparatively cheaper to establish and maintain. These savings are great for business owners and also a tremendous bonus for customers as the savings are reflected in product and service costs. 4 Disadvantages of E-Commerce in 2022 1. No brick-and-mortar store to browse through One of the major disadvantages of digital business and online shopping is that customers can not see the product in real life. For example, if you’re selling clothing and accessories, customers won’t be able to try on an item first to make sure it fits. If they're unhappy with the product, it could lead to refunds, returns, and bad reviews. 2. Shipping times Unlike in-person shopping, customers don’t get the product immediately. In fact, shipping times are one of the worst technical disadvantages of e-commerce to consumers. While same-day shipping is offered as an option by some online businesses, customers typically receive their orders locally within 2-7 days, while international shoppers have to wait between 2-4 weeks. 3. Shipping costs Another drawback of shipping is that the costs have to be covered by somebody, either the business or the customer. It's up to you to balance customer satisfaction with business expenses and decide what percentage, if any, of the shipping costs will be covered by you. 4. No sales during a site crash Sure, you’ll have the advantage of being open round the clock, but one of the more technical disadvantages of e-commerce includes site crashes. If your site unexpectedly goes down, you won’t be able to process any sales. Worse yet, potential customers won’t even be able to browse your product range and wishlist items for later purchase. 3 Advantages of Online Shopping During the COVID-19 Pandemic The COVID-19 pandemic has changed the way we do business forever, the e-commerce industry not escaping this fate. Here are the major advantages of e-commerce during this period. 1. Many businesses were saved due to e-commerce For many businesses, online shopping was the saving grace that allowed them to keep their doors open during one of the worst economic periods in modern history. Without the availability of online shopping, many businesses would have had to close their doors due to bankruptcy. 2. Customer confidence stays high while infection stays low Rather than donning masks, practicing social distancing, and risking infection, e-commerce has allowed customers to shop with confidence and convenience from the safety and comfort of their own homes. 3. Extended access to products During this recent time of raw material and component shortages, buying directly from manufacturers through local or international e-commerce stores has granted customers and online businesses access to previously unreachable markets. 3 Disadvantages of Online Selling During the COVID-19 Pandemic 1. Disrupted postal services As the COVID-19 pandemic has been playing out, postal services from around the world have been pushed to the limit. This has resulted in slowed or delayed shipping, increases in shipping rates, and decreased shipping options. Sometimes, shipping has been completely halted. For example, during December 2021, USPS halted their international mail services for some destinations because of COVID-19 related service disruptions. 2. Increased e-commerce fraud Fraud has always been an ongoing issue in the e-commerce industry. Although during the pandemic, things have only gotten worse. Both online and offline fraud has risen across all industries, and the e-commerce industry has faced many complications trying to combat fraudulent and nefarious activities. 3. Lower customer loyalty Spurred on by the pandemic, there are now more and more budding e-commerce stores popping up in all niches, causing a steady increase in competition. This has led to customers being spoiled for choice, making it tougher than ever to secure their loyalty and trust. Is E-Commerce Worth It Despite the Disadvantages? While the e-commerce industry has just experienced a huge purple patch thanks to COVID-19 restrictions limiting customer access to brick-and-mortar stores, it’s safe to say that many of the advantages won’t likely go away in a post-pandemic era. The e-commerce industry was here pre-COVID and estimates suggest that’s not going to change anytime soon. Plus, considering that there are ways you can reduce the impact of the disadvantages, such as improving your system security to limit the possibility of a site crash or improving your digital marketing strategies, the advantages of e-business can make it a lucrative venture for an entrepreneur with limited funding.
How to Build a Successful Sales Funnel in WooCommerce

Business Metrics

How to Build a Successful Sales Funnel in WooCommerce
Sales funnels are one of the most successful marketing tools today, but a high-performing sales funnel isn’t always easy to set up. Thankfully, with a bit of know-how and some help from a WooCommerce sales funnel plugin, you’ll soon be creating funnels that will take your business’ profits to the next level. In this blog, we'll explain the importance of a sales funnel, how a WordPress funnel builder or plugin can help you, and detail how you can create a sales funnel with WooCommerce. What Is WooCommerce? WooCommerce is one of the most popular WordPress plugins available. One of the biggest reasons for its popularity is the ease with which anyone can set up an e-commerce website or online store. Thanks to this ease of use, merchants can sell anything from digital downloads to physical products. Aside from its ease of setup, WooCommerce is also very popular as there are currently over 6,000 available plugins that merchants can use to boost their online store’s features and functionalities. WooCommerce plugins allow online store owners to do things as simple as integrating conversion rate optimized buttons to their product pages or as complex as running in-depth e-commerce analyses or SEO audits. What Is a Sales Funnel? A sales funnel, also known as a marketing funnel, is a concept that leads potential customers through the decision-making process towards purchasing items or services on your store. The various stages of the sales funnel look like this: Awareness The process begins by catching a prospect's awareness and is normally attained through some form of promotion, marketing, or advocacy. Interest Next, the potential customer is actively looking for a product or service that can solve their problem. Usually, this involves research and product or service comparisons on their part. Decision This stage involves the customer landing on a decision. For you to capture them at this stage of the sales funnel, your product or service must appear to be the best choice for them. Action In the last stage, the prospect makes the purchase. Your job here is to make sure that their experience of purchasing from your store is as easy and hassle-free as possible. That way, they leave with a good first impression and will be more likely to do business with you again in the future. One of the best ways to capture the attention of your prospective customers when they land on your website is with a comprehensive and optimized landing page. A landing page is basically the home page of your online store, the first impression of your business to a new customer. As such, make sure it is informative, attention-grabbing, and easy to navigate. How to Create Your Own Sales Funnel With WooCommerce Absolutely anybody can build a sales funnel in WordPress. And the best news is that you don't need to be a programmer or website developer. One of the easiest ways to create high-converting sales funnels with WooCommerce is to employ the help of sales funnel builders or a plugin like WooFunnels or CartFlows. These WooCommerce plugins specialize in creating funnels and make boosting WooCommerce sales far easier. Here’s a quick step-by-step guide to get you started: Install WooCommerce If you haven’t already, install the WooCommerce plugin for WordPress. Add products Choose which products you’d like to stock in your store and add them. Integrate a sales funnel plugin Choose one of the sales funnel plugins listed above, or any others if you feel that they would suit your goals better. Create a landing page Using your new plugin, create a landing page for your storefront that is targeted to capture your prospects in the interest phase. Create a checkout page Use the plugin to create a checkout page. Add an upsell page Why not also add another layer to your checkout funnels in the form of an upsell page? That way, you can encourage your customers to make that little extra purchase that compliments their final decision. Optimizing Sales Funnels Once you have enough traffic, you can optimize your sales funnel. First, focus on A/B testing your sales pages. This means creating different versions of your sales page and testing each one over similar time periods to see which brings in the most customers and converts more. Making Your Sales Funnel Work for You To increase the efficiency of your sales funnel in WooCommerce, you should always test new ideas, incentivize customer reviews and testimonials, offer discounts and promotions to increase sales, and create and add informative and engaging content to your website. That way, you have a greater chance of increasing your organic traffic and directing your customers through your newly created sales funnels.
The Business Life Cycle: Maximizing Company Growth

Business Metrics

The Business Life Cycle: Maximizing Company Growth
The business life cycle is a model that shows how a business grows and changes over time. It can be applied to a single product, a portion of a business, or an entire company. It aims to show how a business evolves and how to handle each stage of its development. The business life cycle model helps make business strategy decisions, such as how much to invest in research and development or whether to develop or acquire new products. Conceptualizing the life cycle of a business can sometimes be challenging. To help you out, this post will run through everything you need to know about the business life cycle model. Why Is the Business Life Cycle Important? Up-and-coming entrepreneurs often overlook the life cycle of a business. They get so caught up in their ideas and getting their business up and off the ground that it is often easy to overlook the expected corporate lifestyle and forget about the future. With that in mind, understanding the business life cycle model is critical to the success of all managed businesses. What Are the Four Stages of the Business Life Cycle? The life cycle of a business entails several phases that a company can go through. The 4 stages of the business life cycle are: Start-up A product or service is introduced to the market.Growth The product or service is received favorably by the market.Maturity The product or service reaches its peak in popularity or demand.Decline/renewal The product or service declines in popularity and is subsequently halted, reintroduced, or modified to suit new market conditions better. How to Maximise Introductory Growth as a Startup Business There is no surefire way for instant success. Although, there are proven strategies you can employ to help your start-up business grow faster during its introductory stage. Here are a few “how to grow your business" tips that you can easily take advantage of as a startup: Hire the right people Get the right people in the right positions, and your business is sure to get off the ground quickly.Encourage feedback Listening to your customers is a must. Ignore the voice of your greatest critics, and you’re sure to fail.Be adaptable Change is inevitable. With that in mind, it is best to make sure you are staying adaptable before it comes round to bite you later down the road.Incentivize customer loyalty Referral programs are an excellent way to get more people talking about your business faster. How to Employ Growth Strategies to Your Business Ensuring the best possible business growth cycle is important for the efficacy of your company, and here are a few strategies you can employ to do so. Market Strategies Penetration Using strategies like advertisements, product bundles, and discounts can help to outcompete your competitors.Development Leverage the success of your existing popular products or services by launching them in a new geographical area.Segmentation By segmenting your market into groups like customer preferences, interests, and locations, you can easily create targeted campaigns with a much higher chance of success. Partnerships Sometimes to make things happen, businesses may choose to work alongside other businesses. This can lead to joint ventures, mergers, or licensing deals. In many cases, this is a good idea as long as the arrangement benefits all parties involved. Product Expansion Small businesses can benefit hugely from an expansion of product lines. It may be the case that you are experiencing a deceleration in sales or profits due to outdated products or services. If so, it could be time for you to expand your current lineup and boost your chances of success. Alternative Marketing Utilizing non-traditional marketing methods is one of the best ways to grow your budding business. Many small businesses already use more than one online platform for marketing their business, but sometimes switching from one to another can achieve even better results. Can Your Business Grow in the Final Stages of Its Life Cycle? The process of reinvestment can be different for every company, but the purpose is always the same - to ensure that your business can continue to thrive. For businesses that are already experiencing success, reinvestment is about expanding or upgrading. For businesses that are in decline or struggling to get off the ground, reinvestment is about reinvigoration. You can take solace in the fact that, regardless of where your company is in its lifecycle, investing in your business can help you avoid decline and ultimately help to ensure the overall success of your business.