Do you even know what it costs to get a new customer? Episode 187

Do you even know what it costs to get a new customer? Episode 187

by | Oct 31, 2023 | GROWTH, Podcast

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The Customer Acquisition Game

Let’s cut through the jargon and dive straight into something crucial for your business: customer acquisition cost (or CAC.) Yes, it sounds funny, but it’s actually a pretty big deal. Let’s break it down.

The Basics of CAC

If you’re running your e-commerce store, or just starting out, you’re likely hustling hard to get those first sales. And you’re probably relying on organic efforts (like social media or word-of-mouth) to bring in customers. The good news? It doesn’t cost money! The bad news is, it does cost time. Potentially lots of it. And unless you’re a natural social media wiz…there might be a steep learning curve.

However, when you’re ready to kick things up a notch and scale your business, you’ll likely need to put some money into marketing, like ads. This is where the customer acquisition cost (CAC) comes into play.

CAC, in a nutshell: Ad Spend/New Customers
Imagine you spend $1,000 on ads this month, and you get 100 new customers. Your CAC is $10 (that’s $1,000 divided by 100 customers). This simple number is a game-changer.

Why CAC Matters

Why should you even care about CAC? Well, it’s like a reality check for your business. It reminds us that growth isn’t free. You might have been frustrated, wondering why your sales weren’t soaring. But now you know—it costs money to acquire each customer.

Knowing your CAC gives you power. You can compare it to different platforms like your website, Etsy, or Amazon. This helps you make informed decisions about where to focus your efforts.

Customers > Sales

Let’s shift gears a bit. Instead of solely chasing sales numbers, let’s talk customers. This is super important. Sure, you can sell more to your existing customers, but they likely won’t keep buying forever. Everyone has a limit. Eventually, you’ll need new customers to sustain growth.

Picture this: You’re looking at your sales numbers, and they’re good. You can boost them by selling more to your current customers, but deep down, you know you need fresh faces. That’s where focusing on customers, not just sales, comes into play.

Beware of Magical Thinking

Now, let’s talk about something that can sneak up on all of us—magical thinking. It’s when we set goals and create plans but forget about the nitty-gritty details.

You need to connect the dots between your goals and your CAC. Say you want to increase sales by $25,000. Awesome! But you can’t just wing it. You need a marketing budget that aligns with your goal. Don’t fall into the trap of thinking everything will magically fall into place.

How to Calculate Your Acquisition Cost

Ready to tackle your CAC? Let’s break it down in a few simple steps:

  1. Start with a significant timeframe, like year-to-date. Take your total ad spend, including platforms like Google, Facebook, and Instagram.
  2. Find out how many new customers you’ve gained in that timeframe. Divide your total ad spend by the number of new customers. Voilà! You’ve got your CAC.

Remember, this is just the beginning. To dive deeper into the nitty-gritty details and apply it to your business, grab our free downloadable workbook HERE [LINK TBD]

Putting It All Together

Now, it’s time to connect the dots. Let’s say your CAC is $14.69. That’s your starting point. If you want to boost sales by $25k, divide that by your average order value. This tells you how many orders you need.

But here’s the kicker: Not all of those orders should be from existing customers. You need new blood to keep growing. Adjust your marketing budget accordingly. In the end, you’ll have a clearer picture of what growth truly means for your business.

Figure out your cost of Acquiring with this workbook:

Related Links:

Want More Sales? You Might Be Missing These 3 Things: https://thesocialsalesgirls.com/want-more-sales-you-might-be-missing-these-3-things-episode-179/

The 10-Minute Checkup – A quick, 10-minute guide to understanding customer metrics and benchmarks: https://thesocialsalesgirls.com/a-10-minute-checkup-you-should-do-today-episode-157/

How to Have More Cash in Your Business: https://thesocialsalesgirls.com/how-to-have-more-cash-in-your-business-episode-164/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

Ditch your decision fatigue. I’m giving you my framework. It’s brilliant. Episode 186

Ditch your decision fatigue. I’m giving you my framework. It’s brilliant. Episode 186

by | Oct 24, 2023 | GROWTH, Podcast

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Simplify Decision-Making and Unlock Success in Your E-Commerce Business

Picture this: you’re facing a tough day in your e-commerce business, and the weight of numerous decisions is pressing down on you like a heavy burden. We’ve all been there. Maybe you’ve even thought, “I want to bash my head against the wall” in sheer frustration. Running an online product-based business can sometimes feel like an uphill battle. The daily grind of making crucial decisions can leave you feeling overwhelmed and exhausted. In this article, we’ll introduce you to a game-changing concept that will transform the way you make decisions in your e-commerce journey.

Meet Krista Williamson: Your E-Commerce Business Coach
The brain behind this brilliant solution is Krista Williamson, e-commerce business coach extraordinaire. Krista specializes in coaching store owners just like you, helping them navigate the often tricky waters of decision-making.

The Power of Decision-Making
Decision-making is such a crucial aspect of your e-commerce journey. As an e-commerce entrepreneur, you’re the captain of your ship. Every decision you make, whether big or small, has a ripple effect throughout your business. It affects your time, your finances, your operations—everything!

Now, think about a typical day in your business. Do you often find yourself overwhelmed, spinning your wheels, or procrastinating on important decisions? If the answer is yes, you’re not alone. Many entrepreneurs face these challenges, and it all boils down to…

The Hidden Culprit: Decision Debt
It’s not just the decisions you make; it’s also the decisions you don’t make that can lead to chaos in your business. Krista often refers to this phenomenon as “decision debt.” It’s like a stack of unpaid bills, only in the form of unresolved decisions, piling up in the corner of your mind.

These unresolved decisions can make you feel overwhelmed, exhausted, and even paralyzed. It’s that feeling of “spinning” or “stacking” decisions that leads to frustration and drains your energy.

Fear Factor
Let’s talk about why we often find ourselves in this predicament–FEAR. Fear of making the wrong decision, fear of not having enough information, and fear of the unknown can paralyze us. It’s that nagging feeling that we might mess things up if we make a choice. Maybe you don’t even know what you’re afraid of, or you’re telling yourself a story that you can’t make a decision about something.
You’re stuck in your perception of what the problem is, instead of really looking at the facts and backing it up with data. 

The Decision Filter: Your Path to Clarity and Confidence
If this sounds familiar, Krista has a brilliant tool in her arsenal—the Decision Filter. It’s a straightforward yet incredibly effective way to take control of your decision-making process and banish decision debt for good. Here’s how it works:

Step 1: Define the Outcome
– Grab a pen and paper.
– Ask yourself: “What is the outcome I’m looking for?”
– Write down the specific result you want to achieve. Be clear and concise.

Step 2: Align with Your Goals
– Next, ask yourself: “Does this decision align with my big-picture goals for the business?”
– Ensure that the choice you’re contemplating is in harmony with your long-term vision.

Step 3: Now or Later?
– Here’s where the magic happens. Write down: “Does this make sense for now, or is it something for later?”
– Give yourself permission to delay decisions that aren’t time-sensitive. Not everything needs an immediate solution.

Step 4: List the Benefits
– At the top of your template, list all the benefits you’ll gain from making this decision.
– Think about how it will bring clarity, focus, organization, and a potential for better outcomes.

Step 5: Evaluate Criteria for Success
– Before you dive in, identify the criteria that will determine your decision’s success.
– What will you measure, and how will you know if it’s working?

By following these simple steps, you’ll bring your decisions out of the chaotic mental whirlwind and onto paper, where you can see them clearly. It’s like flipping on a light switch in a dark room of confusion. Suddenly, you have the clarity and confidence you need to make informed choices.

Power Tool

What makes the Decision Filter so potent is its ability to demystify decision-making. It helps you see that there are no wrong decisions—only decisions with different outcomes. And guess what? You’re fully capable of handling whatever comes your way. It’s not the end of the world; it’s just another step in your entrepreneurial journey.

Common Challenges Solved with the Decision Filter

  • Project Overload: If you’re overwhelmed by a multitude of projects, the Decision Filter can help you prioritize and decide which ones align with your goals.
  • Time Management: If you struggle with managing your time effectively, this tool can guide you in choosing tasks that truly matter.
  • Team Management: Making decisions about your team’s roles and responsibilities becomes clearer when you apply the filter to your choices.
  • Financial Decisions: When it comes to spending resources or investing in your business, the Decision Filter will help you make informed choices.

 

Unlock Success with Krista’s Decision Filter

Now that you’ve discovered the power of the Decision Filter, you have a valuable tool at your disposal. Say goodbye to decision debt, overwhelm, and fear. Embrace clarity, confidence, and control over your e-commerce journey.

Whether you’re struggling with time management, team decisions, or any other challenge in your e-commerce business, remember this: you have the solution right at your fingertips. Just like Krista’s other clients, you too can transform your business by mastering the art of decision-making.

Don’t let fear and uncertainty hold you back. Take charge of your decisions, and success in your e-commerce business will be within reach. 

Ready to simplify decision-making and unlock success in your e-commerce business?

Start using the Decision Filter today, and watch your business thrive. Remember, your journey to success begins with a single, well-filtered decision.

Related Links:

Connect with Krista on Instagram: https://instagram.com/kristawilliamsoncoaching

Stop Spinning and Get More Done: https://thesocialsalesgirls.com/stop-spinning-and-get-more-done-episode-114/

The One Thing Even Smart Business Owners Get Wrong: https://thesocialsalesgirls.com/the-one-thing-even-smart-business-owners-continue-to-get-wrong-episode-174/

Slash Your To-Do List and Get Better Results: https://thesocialsalesgirls.com/slash-your-to-do-list-and-get-better-results-episode-168/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

Struggling to sell your high priced products? You could be be missing one thing. Episode 185

Struggling to sell your high priced products? You could be be missing one thing. Episode 185

by | Oct 17, 2023 | CONVERSION, Podcast

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The Secret to Unlocking Growth for High AOV Stores

If you sell a higher price-point product, you may feel like you’re on a never-ending quest to boost your conversion rates. We talk about this a lot in the Inner Circle. So many of our members who sell higher priced items struggle to get their conversion rates to what they think should be “normal.” So if this is you–this episode might be your A-HA moment.

Meet Ana Bolanos, a thriving e-commerce entrepreneur just like you. She runs Limbo Imports, a haven for high-quality (and high-ticket) hammocks. Ana started selling her artisan-made cotton hammocks on Etsy and her own website at the same time. But even after reaching 6 figures on Etsy, she could not seem to move the needle on her own site.

Something Ana had to make peace with was that her conversion rate might never increase to that of a lower price point store, but that didn’t mean she had no options for growth. Here’s what she learned about succeeding with a luxury-priced item.

It’s All About the Audience

Let’s face it–high AOV stores aren’t your typical e-commerce ventures. You need those special customers willing to invest in your premium products. Ana, too, struggled at first. Her aha moment? Targeting *the right* audience. By refining her ad audience and emphasizing income levels, she attracted the folks who could genuinely appreciate her artisanal hammocks. 

Ana says the real game-changer for her paid efforts were Google Performance Max ads, which allowed her to really refine her audience targeting and ensure that her ads were shown to an income level that could afford her products.

From looking at her sales data, she made an educated guess that many of her customers were purchasing gifts. So she made it easy for gift-shoppers to find that perfect thing by putting a Best-Sellers Collection right at the top of her site. It gives customers the confidence to choose something the giftee will love, without overthinking it.

Persistence Pays Off

Have you ever seen an ad for a couch on social media, clicked it, and purchased it right away? Neither do most people. Ana knew that her hammocks were a bit like furniture–they required some time and consideration before customers were ready to pull out their credit cards. She realized that if she wanted to convert customers, she would need to show up for them consistently, over a longer period of time. Engaging through email marketing, social media, and retargeting ads, she kept her brand in front of potential customers so that when they were finally ready to make a decision, her store was top of mind (and top of inbox.)

Start with the Right Margins

The foundation of Ana’s success was setting her prices right from the get-go. You need those margins to support your marketing efforts, especially the extended retargeting campaigns that keep your brand top of customers’ minds.

Quality Over Quantity
When selling luxury items, it’s essential to assure potential buyers of your product’s quality. Ana did this through impeccable product descriptions, well-placed FAQ sections, and stunning images that showed multiple angles and detail shots of the product. The goal? Make sure her customers knew they were getting a top-tier product. She also tweaked the language in her ads to emphasize that her products were designer, handmade, and 100% cotton.
Ana noticed that she was getting the same questions from customers over and over again, so she added an FAQ section to her product pages. This did double duty–she was able to bust potential objections with timely information, while boosting customer confidence by reassuring them that she would stand by her products.

Upsells For The Win
Ana’s secret weapon? An upsell app. She was able to squeeze out an extra $20 from many of her customers. That boost to her Average Order Value, when applied to each and every order, added up to a major bump in overall revenue.

Adding a Little Extra
Ana also ventured into the world of licensed university hammocks, opening up new avenues for growth. By expanding your product line smartly, you can tap into different markets and multiply your success.

Putting It All Together

Let’s talk next steps…maybe it’s time to reassess your pricing, optimize your ad strategy, or add some FAQs to your website. Ana’s journey showcases that with persistence, the right audience, and a bit of creativity, you can overcome the challenges of high AOV e-commerce and achieve remarkable success.

Remember, it’s not always about the quantity of sales; it’s about the quality of your strategy. Keep these valuable lessons in your e-commerce toolkit as you embark on your journey to higher conversion rates and increased profitability.

Ready to discover even more strategies for your high AOV e-commerce store? Connect with Ana at www.limboimports.com for inspiration and insights.

Your e-commerce success story starts here.

Find Ana here: https://limboimports.com/

Related Links:
3 Genius Strategies to Increase AOV: https://thesocialsalesgirls.com/3-genius-strategies-to-increase-your-aov-episode-72/

Pricing to Maximize Profit: https://thesocialsalesgirls.com/pricing-to-maximize-profit-episode-167/

Forget Everything You Think You Know About Pricing, And Be Profitable: https://thesocialsalesgirls.com/forget-everything-you-think-you-know-about-pricing-and-be-profitable-episode-43/

3 Reasons Why You Can’t Ignore Google’s Super Smart PMax Ads: https://thesocialsalesgirls.com/3-reasons-why-you-cant-ignore-googles-super-smart-pmax-ads-episode-181

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

6 steps you should take to get the results you want faster. Episode 184

6 steps you should take to get the results you want faster. Episode 184

by | Oct 10, 2023 | CONVERSION, Podcast

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Why do some people make big progress fast while the rest of us take longer to find our path to success?

When Chontelle Fossey joined the Inner Circle, I kept my eye on her.

Chontelle owns The Lily Pot, a fast growing business in New Zealand where she sells and ships live house plants right from her home… that’s right, live!

Chontelle the perfect example of what’s possible when you focus on your goals, show up and actually ‘do the work’ to make them happen.

I first noticed Chontelle in our $15 Ads Made Easy week. Even though she worked in the opposite time zone, she was showing up and doing the work. I was intrigued, because she was getting good results from her ad tests even though she was selling live plants to a tiny audience.

When she joined the Inner Circle, I was watching.

In her first 5 months of being a member of the Inner Circle, Chontelle had a total transformation of her business and has even been able to pay herself  for 7 weeks in a row.

Chontelle’s generosity and passion for helping our other members to grow was infectious as she shared her progress in our Inner Circle Members group.

Not wanting others to struggle with the overwhelm, she regularly shares her wins and explains the methods behind how she achieves them. 

I was so impressed with Chontelle, I asked her to record a podcast with me so she could share the steps she took to reach her goals quickly. We recorded our episode a year ago. Since then, Chontelle has continued to make huge progress. She’s left her job to work full time on her business.
I know many of you are hoping to do the same. It’s possible for all of us.

You can listen to my episode with Chontelle here or read on to learn the 6 steps that brought her results faster.

“I’m quite a methodical person and that’s probably why I really connected with the inner Circle because everything was set out in short modules. I just worked through that, but I found it was through 6 clear steps that I took which made the biggest difference.”

Chontelle’s 3 steps to making big progress in your business:

1. Switch your email provider to Klaviyo and set up automations

Chontelle switched from a free version of Mailchimp to a paid Klaviyo plan to send her customer emails.
This can be scary for many business owners as they transition from a free plan to paid, but for Chontelle the choice was easy.
“I’m very much a person who likes to try it, analyze it, see if it works, and if it doesn’t, be done with it. My favorite quote is “if you always do what you’ve always done, you’ll always get what you’ve always got.”
After making the switch, Chontelle began automating her business by setting up a welcome series flow and creating a popup for her website.
Right off the bat Chontelle saw an increase in sales from her welcome series and was able to create more “set and forget” automations that created more sales, and saved her time.
“I’d seen pop ups and things on websites, but didn’t really understand the long game that they played and so understanding that and setting that up for my business really grew my email list.”

2. Know how to get consistent traffic to your website

Did you know that for every 100 people that visit your website, only 1-2 people will actually buy? And that’s only if you’re attracting the right audience!
This was a huge light bulb moment for Chontelle.
“My traffic wasn’t bad, but it wasn’t matching the sales that I wanted.”
She knew that in order to increase her sales, she needed to spend her time doing the work to drive consistent traffic to her website.
Chontelle took control.
She immersed herself in our Traffic Bootcamp modules and implemented the strategies.
She watched and analyzed her traffic, making sure that every action she took was to drive more traffic to her website. She stayed focused and based her decisions on the her traffic number each week.

3. Invest in paid ads

Chontelle is a strong believer in the power of organic traffic, but she also knew that in order to grow and scale her business, she would need to implement a paid ads strategy.
And it all started with Ads made easy.
“When I first started that I naturally saw an increase in sales. But what I loved about it was actually understanding how to.”
Because Chontelle understood how to make the ads work for her, she spent the time analyzing the data, then tweaking and modifying her ads to further drive traffic to her website.
“It was about spending the least amount I possibly could to get the most traffic from my ads to my site. Because if you’re going to spend money, you may as well have something that works for you.”
When she was ready to learn more, Chontelle took a step further by booking a call with an ecommerce coach from our Inner Circle program who specializes in the Facebook ads platform.

Here’s what she learned:

  • Don’t reinvent the wheel.
    See what your competitors or big brands are doing with their ads by utilizing the Meta Ads Library. A resource that allows you to search all ads that are currently running across Meta platforms. Take inspiration that you can apply to your own ad copy or images.

     

     

  • Stop people from scrolling.
    Test images in your ads to see what stops people from scrolling and gets them to click through to your website. After you find the best scroll-stopping images, test copy that will grab their attention, and get them clicking.

     

     

  • Setup controlled tests.
    “Test a couple of different ads to see what really connects and what you can get your biggest bang for buck.”
    Learn how to set up, test your ads, and read the results, so that you can truly know which ad will perform best for your customer and get you the best value for money.

  • Track your key metrics… and not just your sales
    It’s common in our business to focus on one number and one number only… sales.
    Chontelle approaches things a little differently.
    Instead of dwelling on the number of sales on a low sales week, Chontelle makes sure she checks all of her key metrics to find the wins, and also identifies where she could “double down” and take action.
    “You have a strategy to go to these numbers and solve the problem. You have to look at it from a long term perspective and sales is only one measure. If your other steps are tracking in the right direction, the sales will eventually follow, and may be better by spending the time getting things right before those sales come.”
    Here are the key metrics Chontelle tracks every week:

     

    • Email signups
    • Email signup rate
    • Facebook followers
    • Website traffic
    • Average order value
    • Website conversion rate
  • Prioritize sending weekly emails
    Before joining the Inner Circle, Chontelle’s email marketing strategy was almost non-existent.
    She would send an email one week, then forget for the following two weeks.
    It wasn’t a priority.
    “Now I consistently send two to three a week and it is like a cash machine. I send an email and the sales follow”
    Chontelle also attributes her success to using a mix of two different types of emails:

     

    • Nurture Emails
      Nurture emails give back to your customer by providing them with value.
      If you continually send out “salesy” emails and your customer is not looking to buy at that time, they will stop opening your emails. This can hurt your email open rates and you might find your emails going straight into your customers’ spam folder.
      Chontelle send emails that link to her blog posts emails with plant care tips that provide value to her customers. For example: “It’s Winter, where do you now place your plants in your house?”
    • Sales Emails
      Each week Chontelle focuses on a specific product, collection or offer and follows this Reliable Revenue sending strategy.

       

      • Send one email to your full list.
      • The second email will be retargeting those who didn’t open. Focus on a different time of day to try to capture those who didn’t see it the first time.
      • The third email will be retargeting anyone who either opened or clicked on the first email but who didn’t buy. This is where the sales happen.

  • Show up live on Facebook
    In this busy world that we live in, it’s common for posts to go unseen and get lost in the feed.
    Chontelle decided that it wasn’t enough for her to just post photos of plants and memes. When analyzing her content, she realized that the photos that got the highest engagement were always the photos that she was in.
    She needed to show up and put a face to her business in order to connect with her customers.
    And so she began to go live on Facebook.
    “I did 2 lives last week and sold $700 in products from those lives and I literally sat there, did a live for 5 minutes, looked at my app to see how many people were going to my website and it was like a cash machine.”

    Chontelle’s tips for going live on Facebook:

    • Choose a set day and time each week to go live.
      By showing up consistently your audience is more likely to join.
      Use your analytics to find out when your audience is the most active and go live at that time. Chontelle found that 8pm on a Thursday worked best for her.
    • Show off your product.
      Customers love to see your products up close and personal. Often website images make it hard to see the size or color of a product, so lives can be a great way to give your audience a better look and more of a reason to buy.
    • Give them a reason to buy
      Share a sale or special offer with your live audience to create scarcity, urgency or exclusivity. Don’t forget to ask for the sale.

Chontelle came into 2022 with a fire in her belly and a desire to grow her business.

While working at her full time job, with limited time to spare, Chontelle was able to show up and focus on these few tasks that would truly move the needle in her business.

I hope that you can onboard some of these strategies in your own business to help you fast track your business growth.

To check out the amazing business Chontelle has created and for all your plant tips and tricks, be sure to follow The Lily Pot or visit https://thelilypot.co.nz/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

Frustrated by wasting time and money? A new approach for getting ROI. Episode 183

Frustrated by wasting time and money? A new approach for getting ROI. Episode 183

by | Oct 3, 2023 | GROWTH, Podcast

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Unlocking Your Business Potential: Rethinking ROI for E-commerce Success

If you’ve ever felt like your business is a rollercoaster of expenses, frustration, and unmet potential, you’re not alone. But what if I told you there’s a way to flip the script, maximize your returns, and finally see the results you’ve been longing for?

In this podcast episode, we’re diving deep into the world of ROI (Return on Investment). 

 

The ROI Conundrum

We’ve all been there – you’re investing time, money, and energy into your e-commerce venture, but the results you expect just don’t seem to materialize. It’s frustrating, right? It’s like you’re stuck in a loop, always busy but never quite satisfied with your business’s performance.

But my guest Ciara Stokeland (a seasoned entrepreneur with a wealth of experience in the e-commerce world) is changing the game with a fresh perspective on ROI that can transform your business.

 

ROI ≠ ROAS

Traditionally, when we think about ROI, it’s often tied to advertising spend. You invest X dollars in marketing, and you expect a return in the form of increased sales. While this is a crucial aspect, Ciara brings something more holistic to the table.

She suggests we broaden our perspective and apply ROI thinking to every aspect of our business, not just marketing. Here’s the key: everything you invest in, whether it’s money, time, or effort, should yield a return. It might be a monetary return or a time return, but every investment should have a purpose.

 

The 2-Step Process

Ciara shares two essential filters to apply when considering any business expense:

  1. Budget Check: Start by looking at your budget. Understand the raw cost of the investment and its impact on your net profit. Are you comfortable with the potential effect on your bottom line?
  1. ROI Expectation: Once you’ve assessed the budget impact, shift your focus to what you expect in return. What tangible results do you anticipate? Will this investment save you time, increase sales, or improve your business in some other way?

 

ROI in Real Life

Let’s break down this concept with a couple of real-life examples:

  • Attending Trade Shows

Imagine you plan to attend a trade show, a common expense for product-based businesses. Before committing, calculate the costs – travel, accommodation, and time away from your business. Then, set clear ROI expectations. Will this trade show result in new products, new contracts, or significant sales growth? Approach it strategically to ensure a positive return.

  • Adding New Product Lines

Many entrepreneurs get tempted to diversify their product offerings without considering ROI. Before introducing a new product line, analyze the potential impact on your net profit. Then, ask yourself: What return do you expect? Will it lead to more sales, save time, or fulfill a market demand? Specific ROI expectations will guide your decision.

 

Remember: Resources Are More Than Money

In our quest for e-commerce success, we must recognize that resources extend beyond just money. Time, effort, and attention are equally valuable. Consider the impact of each investment on these resources and set realistic ROI expectations. This shift in mindset can make a world of difference in your business journey.

 

The Life-Changing Magic of ROI Thinking

Ciara’s insights remind us that e-commerce success isn’t solely about hustle and hard work; it’s about making strategic choices. By applying ROI thinking to every aspect of your business, you can optimize your investments, streamline your operations, and ultimately achieve the growth and profitability you know your business is capable of.

So, before you swipe that credit card or commit to a new project/course/strategy, take a moment to reflect on ROI. It’s the key to unlocking your business’s full potential and ensuring that every resource you invest – whether money, time, or effort – works tirelessly to bring you closer to your e-commerce goals.

If you’d like to connect with Ciara and explore her expertise further, visit her website at https://www.Ciarastokeland.com/

 

Related links:

How To Get Control of Your Money https://thesocialsalesgirls.com/how-to-get-control-of-your-episode-158/

A Profit First Expert Shares How To Manage Inventory https://thesocialsalesgirls.com/a-profit-first-expert-shares-how-to-manage-inventory-episode-82/

Grow Up Your Business and Get More Profit https://thesocialsalesgirls.com/grow-up-your-business-get-more-profit-episode-77/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

Do this now, and be confident that you are on the right track. Episode 182

Do this now, and be confident that you are on the right track. Episode 182

by | Sep 26, 2023 | CONVERSION, Podcast

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As we head into the 4th quarter, you might be feeling underwhelmed by your results.

It’s normal. Progress comes in baby steps.

Sometimes we get stuck in our feelings as business owners. It’s easy to feel like we’re not doing enough- not enough sales, for too much time and money. You’re not alone – I have felt the same way. But as someone who’s successfully grown and sold 3 businesses, here’s what I know.

The answer is in your numbers.

Take a look- what’s really growing your sales? Do more of what’s working, and give yourself permission to let go of the things that aren’t moving you forward. This will make you feel better- and even in control!

It might help you to see how I was feeling, and what was happening at my project store Sock Doggo, as I was entering my first Q4.

Here’s a look back:
You might be surprised to hear that 60%+ of Sock Doggo’s sales come down to just 2 strategies. Listen in as I share what’s working (and how you can find what’s working in your business!) – or read below.

 

What’s working – here are the actual numbers

Total sales: $12,600 of sales at Sock Doggo 

22% of sales came from a collaboration
These were wholesale sales working with American Doxie. This is a profitable relationship! This is a huge clue about what’s working in my business.

42% of sales came from email
My Klaviyo dashboard shows that email is working well to convert leads into buyers.

64% of sales came from those 2 activities
This is great news because I can clearly see what’s working.

 

Why does it matter?

The time spent to learn and maintain other “shiny objects” is a distraction. As ecommerce store owners, we only have finite time to build our businesses. Don’t burn yourself out chasing the latest trends. The fastest way to grow your business is to do more of what’s working. The data for Sock Doggo is clear. If I spend more time on wholesale collaborations or email marketing, that’s going to grow my sales. I don’t have to guess- which is a great feeling.

 

What else do I need to do to grow my sales at this stage?

Traffic – If you don’t know how to reliably drive 3000+ web visitors a month to your store, you won’t have consistent sales. If you aren’t there yet- that is the first step! If you aren’t sure how to get there, check out our Traffic Bootcamp course here. 

At Sock Doggo, we’ve got 3000+ web visitors a month, so our next step is conversion.

 

Why does conversion matter, and how do we improve our conversion rate?

Sock Doggo’s conversion rate is 0.78%. This rate is pretty low, but it’s common for new stores as you find your way to your perfect audience. 

How can I increase my conversion rate? The data tells us that, too. Returning visitors convert better (usually double or more), so we’ll focus on them. 

My next steps? Increasing our conversion rate. I’d like Sock Doggo to be at least 1% – so 1 out of every 100 visitors makes a purchase. The fastest way to reach my goal is to get more people back for repeat visits, so going forward, I’m going to commit to emailing my list every week. When I send more email, I’ll get more returning visitors, and my conversion rate should increase.

 

Key Takeaways

Here’s what I need to do next to get more sales in less time. I know if I focus on these 3 things, I’ll be moving forward in my business- and I’ll feel in control while doing it.

#1- Collaborations
Our wholesale collaboration was a huge success- profitable and over 20% of our revenue so far. I can take this success and reach out to more partners with confidence. Wanna know how we did it? Read more about our collaboration with American Doxie (and how you can set up something similar for your brand) here. 

#2– Email Marketing
I know I could be more consistent with email, and if I am, it’ll pay off. Over 40% of my sales are from email. That means I’ve found the right people to send to my store. If I focus on growing my list larger and emailing them more, I know I’ll see more sales. What’s better is that traffic from email marketing is returning traffic. And, we know those customers convert at more than double the rate of new visitors. Which leads me to my 3rd takeaway…

#3- Increase the number of returning visitors
I know that I need to get more people back to my website a 2nd, 3rd, 4th time. Many new visitors aren’t ready to buy yet. By getting them on our email list, we’re more likely to get them to return. Returning visitors convert at more than double the rate of new visitors, so it’s worth focusing on them. This is the best way to increase our conversion rate. Need ideas? Learn more about how to get returning visitors here

Success comes from consistency – focus on the small steps now that will lead to big wins later!

 

Next steps for your ecommerce business

Every ecommerce store is different. The best way to learn what you should focus on in your ecommerce store is to find your data!

Here’s where I found my store’s data (and how to find yours)

Wholesale sales: This is from my Shopify dashboard. You can refer to your dashboard or Google Analytics

Email marketing sales: Klaviyo’s dashboard calculates this for me. With UTM parameters set up, you can also find this number in Google Analytics

Returning visitors and conversion rates: This metric is in Google Analytics’ New vs Returning Visitors report. 

You’ll want to make sure your Google Analytics account is set up for ecommerce.

Important Update: Google Analytics and GA4:
*As of July 2023, Google Analytics is being replaced with GA4.* 

If you’re still able to access Universal Google Analytics, refer to this guide for help understanding your data. Use this guide if you’re ready to focus on conversion.

If you’re not on GA4 yet, you need to be! This is how Google will track your metrics moving forward. We’re still learning about everything GA4 has to offer. Learn more about GA4 here on the podcast.

Inner Circle members, your GA4 training is here.

Inner Circle members get access to our Google ecommerce coach Leona. Leona keeps members updated on everything Google. Join the waitlist for the Inner Circle here, so you can get the latest information as soon as we have it: I want in!

 

More Resources:

On the podcast
How to collaborate- 7 ideas to get you started: https://thesocialsalesgirls.com/how-to-use-collaborations-to-get-traffic-and-sales-episode-18/

How to get wholesale orders: https://thesocialsalesgirls.com/3-things-im-doing-to-grow-wholesale-sales-episode-102/

How to get more leads: https://thesocialsalesgirls.com/whats-working-in-2022-part-3-episode-105/

How to make a simple marketing plan: https://thesocialsalesgirls.com/how-you-can-make-a-simple-marketing-plan/

12 email ideas to get you started with email marketing: https://thesocialsalesgirls.com/twelve-email-ideas-you-can-implement-and-recycle-episode-12/

On the blog
Learn more about our event with American Doxie here: https://thesocialsalesgirls.com/heres-what-our-partnered-event-cost-and-what-we-got-in-return/

Not sure how to get started with wholesale? Learn how here: https://thesocialsalesgirls.com/want-to-have-your-products-made-offshore-dont-miss-this/

See another example of how to focus on what matters in your business: https://thesocialsalesgirls.com/unsure-where-you-should-focus-figure-it-out-in-just-4-steps/

Learn more about collaboration: https://thesocialsalesgirls.com/im-collaborating-to-grow-my-sales-heres-how-im-doing-it/

Get another collaboration example here: https://thesocialsalesgirls.com/my-conversion-rate-is-up-92-heres-what-happened/

More influencer marketing ideas from Sock Doggo: https://thesocialsalesgirls.com/how-im-using-influencer-marketing-for-sock-doggo/

Free resources on my website: https://thesocialsalesgirls.com/resource-library/

Learn how to use your Google Analytics data: https://thesocialsalesgirls.com/7-clicks-to-google-analytics

Google Analytics report for those ready to focus on conversion: https://thesocialsalesgirls.com/secret-to-conversion-cheat-sheet/

Email marketing cheat sheet to get started now: https://thesocialsalesgirls.com/email-marketing-cheat-sheet

Not sure what you should focus on next? Learn what stage you’re in and next steps here: https://thesocialsalesgirls.com/growth-plan-action-checklist

Need a little extra help? An ecommerce coach could be the best next step. We offer affordable ecommerce coaching in our Inner Circle community. Get on the waitlist for the Inner Circle here and get invited next time we’re open to take new members: Sign me up!

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.