Uh oh, a formula – that’s math!
No reason to stress though, it’s a really easy one:
When you think about it, there are only 4 ways to increase your revenue:
And that’s too bad – because it’s those other 3 that REALLY fuel your growth.
What’s more: by only focusing on traffic, you’re focusing on the most expensive growth lever.
Let’s say in the next 12 months you want to double your revenue.
Well, you could try and do that only by increasing your traffic.
If that’s the only plan you have, well…
Chances are you’ve already hit a traffic plateau and the extra traffic you’ll get will not only be expensive, but also less likely to be relevant or ready to buy.
It’s going to take a huge effort and budget to double your revenue this way.
But you don’t need any extra traffic at all to double your revenue.
Ok, let’s assume you have:
So your total revenue is T x CR x F x AOV = 100,000 x 1% x 1 x 100 = $100,000.
Next, let’s say the traffic stays the same, but you increase the 3 other levers (purchase frequency, average order value and conversion rate) by 30% each.
Now the numbers look like this:
These targets look a lot easier to reach than trying to double your traffic, right?
Let’s do the math now: T x CR x F x AOV = 100,000 x 1.3% x 1.3 x 130 = $219,700
Two things, actually:
Yes, email. I know you’re already doing that – or at least: sort of.
But what we see for most stores, is that they’re leaving money on the table by not doing enough of it. Or by not doing it right.
I get it, email is time-consuming and definitely not as sexy as launching a new ad campaign. So it doesn’t get the attention it deserves. Hence it doesn’t get you the results you deserve.
But email can grow your revenue considerably. If you do it right, email should at least be responsible for 20 to 30% of your total revenue. Some stores even get up to 50% of their revenue from email. If you don’t have at least 20% of your revenue coming from email, then we should definitely talk.
Most stores have HUGE opportunities to grow with email. Email simply is the most profitable and most opportunity-rich channel. And we’re not just talking about newsletters. But email automation too – that’s typically where the real money is.
Email is a great way to build a real connection with your customers – and to turn them into raving fans.
With a world-class email marketing strategy, we can increase both the purchase frequency and the AOV.
We help you make your site better so more visitors will convert and they will spend more. Conversion optimization doesn’t just work to increase your conversion rate, it’s also a great way to increase your AOV.
The way to do this: we do research to find out why people are not converting and A/B test solutions to get them to convert. OK, I’m cutting corners here, there’s actually a lot more to it – if you want to learn more about it, I’ve written a book on the topic.
So in short, this is the process:
Step 1: we help you improve your email marketing strategy and execution (both newsletters and email automation) to increase the purchase frequency and AOV
Step 2: we help you increase the conversion rate and AOV with conversion optimization and A/B testing
Step 3 (optional): you buy a boat with the extra money we made you 😉
PS: Typically we work on all 3 steps for our clients. But if you’re confident you have one of the steps already covered – for instance, you already have a boat – then we can of course still work together on the remaining step(s).
I have been very happy with the value provided by Dexter Agency. Their team is skilled and dedicated to providing the results they promise. Since working with Dexter we are seeing higher conversion rates and a much improved email marketing strategy. They also provide detailed reporting with easy to understand statistics and actionable insights.
Working with Dexter is like having another member of the team. They've gone to great lengths to help us optimize the site, as well as give feedback on projects, bounce ideas, and make introductions that improve our business. Working with them has been a great experience!
We are very happy with Dexter Agency and highly recommend them. Their A/B testing win-rate is very high, which means they provide us several hundred thousand euros more in revenue per year.
We have grown explosively since we committed ourselves to working with dexter.agency: our revenue has risen by as much as 517% in a year's time. We are not only incredibly pleased with the results but also in particular how it was achieved. They collaborate strategically, as a true stakeholder, and proactively emerge with new ideas to help our business to continue to grow.