Online business profitability can be elusive due to the many factors, some of which are beyond your control and conspire against you. Fortunately many of the onsite factors and offsite advertising can be changed or redesigned to deliver improvement in online business performance.
The internet primarily consists of words, images and videos, yet the truth is… behind all the text and pictures ‘it’s a numbers game’ and those who always keep on top of the statistics ‘stay in front of the pack’.
The monitoring of key performance indicators is vital to understand where the traffic to your site is arriving from, which marketing campaigns are performing best and which keywords or phrases are driving traffic from a particular search engine. All of this provides information important in guiding decision making.
Having obtained traffic data it is necessary to discover how individual website elements perform. For example, what is the ‘opt in’ rate or the ‘conversion rate’ compared to the desired outcome?
Fundamental to profitability are the following:
- uncovering the cost of acquiring a new customer
- consideration of any associated marketing costs
- cost of the product or service-including fulfillment costs
- packaging and postage costs
- number of sales required to cover these costs
- establishing a break-even position
- understanding lifetime value of a customer
A frequent scenario involves a new customer being attracted to a product which represents good value to them but provides low profitability to the business. However by fully delivering and meeting – if not exceeding the customer’s expectations – the business begins to build trust with the new customer. Once this has been done it is usual that the customer will deepen the relationship with the business by purchasing products which in turn deliver a higher profit to the business.
NB Usually it costs less and is easier to sell to an existing customer than acquire new customers.
If you are committed to learn more about online business and have set up the systems which are monitoring the data mentioned so far but are wondering what to do next to grow your business, I have news that will be of great benefit to your online business development.
Imagine a tool able to predict the profitability effect of website collateral and marketing changes on returns of investment before you have actually made them?
Imagine being able to model proposed changes to such as advertising campaigns or web content funnels and have the facility to predict the profitability outcomes.
Well now you can…!
A new game changing software tool makes planning changes that lead to improved online business profitability easy.
This tool allows you to set your desired results, using the figures you have added, it then provides the information on changes needed to campaigns, marketing funnels and website(s) to achieve the preferred results.
By implementing theses suggested changes you will be able to use ’reverse engineering’ to achieve the improved sales and profitability you desire while also proving to yourself and others the wisdom of your decision.
Sounds far-fetched? That’s exactly what I thought until I watched the introductory video.
Managing ecommerce strategy and website development without the risk is now possible.