3 Ways to Plug Your Ecommerce Business’ Revenue Leaks
A recession is likely (but not certain) in the coming months. In these times of uncertainty, it’s difficult to count on things like steady revenue and predictable growth. Instead, guides are looking for ways to close the hatches.
It’s tempting to smack common “expense boogeymen” like marketing or consider layoffs. But these are dramatic activities that can cripple your business once the dust settles and business returns to normal.
Instead, start cleaning things up. Here are some ways you can plug leaks and optimize activity to improve your ecommerce earnings.
1. Tap on your data
Every company has access to huge amounts of data. It is inherently built into most software solutions, both as a primary and secondary feature.
On the one hand, if you use an app like Google Analytics, the whole platform is in place to collect data on different ecommerce platforms. From there, the data is routed to a single location where you can analyze it.
On the other hand, data tracking is often included as an additional feature. For example, if a business uses Shopify, the website builder will have an extensive analytics dashboard that tracks things like website traffic, order quantity and size, and other key customer metrics.
Regardless of their primary or secondary status, businesses should leverage this data to improve their ecommerce revenue streams. WordStream’s digital marketing gurus point out that you can use this information to improve a company’s online sales in a number of ways, including:
- Analyzing traffic and shopper behavior to inform sales strategy and customer journey across your website.
- Improving the results and reputation generated by social media related to your brand, e.g.
- Improving customer retention by finding landing pages with longer dwell time that show more value to the customer.
There are many ways data can improve an ecommerce site. Don’t leave it disorganized and unused.
2. Track abandoned carts
WordStream also suggests analyzing your customers’ shopping carts to target better promotions and drive more conversions (i.e. close more sales). This suggestion is so important that it deserves its own section.
Imagine a physical interaction between a clerk and a customer in a physical store. Under these circumstances, the employee has the chance to convince the customer by proactively asking questions, clarifying characteristics and linking advantages with weaknesses.
This is not the case in an e-commerce environment. On the contrary, a potential customer can click through to a website, read something themselves, add a product to their shopping cart… and then click away at the last second and disappear into the internet airwaves, never to be seen again.
This can happen for many different reasons. You might think you can find a better price elsewhere. You may not understand the product. In some cases, they may have simply run out of time, clicked away, and neglected to come back to complete their purchase.
Many of these abandoned carts represent a potential revenue stream – if a business can follow up on them. Fortunately, there are ways to send abandoned cart emails that can remind customers to complete their purchase.
Some SaaS platforms, like those with membership accounts and programs, offer this feature for customers who sign up while attempting to make a purchase. In many cases, however, customers are anonymous visitors. In these cases, e-commerce brands can use identity resolution software like Retention.com to collect key first-party customer data, such as name and email address, to then send a personalized message to increase engagement and drive sales increase.
It doesn’t matter how companies plug this leak. Importantly, they invest resources in combating abandoned cart revenue rather than solely focusing on chasing new customers early in the customer journey.
3. Clean up customer service
The term revenue conjures up images of sales, marketing, and other proactive activities at the front end of the customer journey. But the process of closing revenue leaks should go beyond the point of sale.
One important area to focus on when cleaning up sales is customer service. The ability to provide prompt, effective, and most importantly, satisfactory customer service is critical. It keeps your existing customers happy and loyal. It can also convince potential customers with questions. It can even improve word of mouth marketing and brand reputation.
Despite its importance, customer service is often an afterthought that receives minimal attention—especially in smaller businesses with limited resources. Luckily, there are many nice and easy ways to improve a company’s customer service (and, in turn, its revenue) without breaking the bank or opening a new call center. For example, according to several members of the Forbes Communication Council, you can:
- Use live chat: Instant gratification is a real thing. The good news is that there are many chat software solutions that you can use to quickly and easily set up accessible communication channels (for both your employees and your customers) to resolve questions and concerns.
- Pay attention to customer feedback: This can help you improve your sales and marketing. It’s also a great way to continuously monitor the quality of your ecommerce services and the revenue streams that come with them.
- Look for bottlenecks: Customer service can get bogged down in many areas, e.g. B. in the reaction time. Identify these problem areas and clean them up to improve the customer experience.
- Follow up with a promotional offer: This is especially relevant when it comes to revenue loss. As soon as you have bought a customer ticket, take the opportunity to offer them a little added value with a targeted offer such as a voucher code.
Customer service should never be an afterthought. Make sure it supports and enhances your company’s primary revenue channels.
Preparing revenue streams for a recession
It’s hard to predict what kind of ups and downs we’ll see in the coming months. There could be a modest market pullback triggered by the final stages of the fight to contain inflation. On the other hand, there could be a full-blown recession that could drag on for a year or more.
Whatever the future holds, wise leaders should be proactive in their efforts to manage potential harm. Closing ecommerce revenue leaks is a great way to clean up ongoing operations so you can survive (and maybe even thrive) in the year ahead.