The year is finally coming to an end and for most of us it is a big relief. If you are an Ecommerce store owner however, that feeling of relief might not be here yet, as you now have to worry about your strategy and game plan for the new year!
With a rocky year behind us and many unpredictable things happening, here are a few things that you can focus on to make sure you set yourself up for success in 2021.
Increase Your AOV (Average Order Value)
Your online store’s AOV is one of the most important metrics that you should look at when you want to grow a successful brand and become more profitable. When you increase your AOV, you increase your return on investment and your return on ad spend, and you ultimately get the most out of every customer. This will also mean that acquiring customers become cheaper as they end up spending more money in your store.
Increasing the AOV can be done in many ways such as upselling, cross-selling or bundling products together. When you increase your average order value you can expect higher cost per acquisitions, but you will most likely outperform your competitors. If you are only selling one product, it is time to look into stocking more products that will possibly compliment what you are currently selling.
We can’t stress enough the importance of lifetime value. Every time you spend money to acquire a new customer, you have the opportunity to impress them with your offering and (hopefully) great customer service, and you could get more purchases from them in the future. This means you can recoup your cost of customer acquisition and overall make more profits.
By focusing on your customer lifetime value (which usually ranges between 12 – 24 months) you will get a clear indication whether you are growing a successful brand. Advertisers often want to focus on ROAS only for overall performance, but by focusing on the ROAS you will only see whether your advertising efforts is efficient, but not whether you are effectively growing a successful brand.
Read More: Community: The Missing Piece of the Growth Puzzle
Storytelling Has Become More Important Than Ever
Storytelling has become more important than ever, especially after a year filled with city or country wide lockdowns and people are actually taking time to sit down and watch branded content
Video views have skyrocketed and responsiveness across the board has also increased. People pay a lot more attention and people are way more open for testing and experimentation. This is why it is important to find new ways to create content cheaper, without letting the quality get worse, and telling your story through this content. You have to put your audience first and you have to shift your own attention to how you can create value for your audience.
Get the Best Apps for YOUR Online Store
There are many apps that you can use on Shopify (or other Ecommerce platforms) that will help you with your business. We still see a lot of Ecommerce stores not reaching their full potential and sometimes it can be an app that will definitely set you up for success. There are a lot of free apps which are great, but paid versions bring the full potential of these apps and you can treat this as in investment if you are able to benefit from the app.
The main things you need to ask yourself when choosing an app is:
- What does your store need outside of Shopify’s features?
- What would increase your sales?
- What would make managing your store easier?
- How much do you want to spend on apps?
One amazing app recommendation which is a must have is ‘Afterpay’, which lets customers instantly purchase a product, and they then pay it off in monthly installments (you instantly get your money though ;)). Afterpay is currently available in Australia, New Zealand, the United States and the United Kingdom
Focus on These 4 Metrics
As we dive into the Facebook ad account, Google Analytics, Shopify Analytics and any other platforms where you can analyse numbers, be careful not to overthink and over analyse. Information overload will make you miss some of the most important metrics and leave you sidetracked. If you focus on these metrics and get them to the best standard that you can, you will set yourself up for success;
- AOV (Average Order Value)
- LTV (Lifetime Value)
- CPA (Cost Per Acquisition)
- CR (Conversion Rate)
Read More: What Columns to Look at for Ads Manager Reporting
As you can see the first two metrics were also discussed above – and of course there are other metrics to look at, but the idea here is to focus on these 4 key metrics to the best of your ability and improve them as much as you can, and ultimately the ROI and ROAS will be where you want it to be.
If your Ecommerce business lacks in one of these above mentioned topics, imagine what a difference it can make if you work on it and improve this to the best of your ability. And what’s even better is that you improve all of these aspects, and you are guaranteed to set yourself up for success in the new year!