Revenue Boosters in a Rough Economy
Despite a rough economy and a return to in-person shopping, plenty of online stores are thriving. Many sell non-essentials, and some are penetrating new markets.
They remind us of the fundamentals of generating ecommerce revenue:
- Attract new buyers. Gaining new customers often relies on advertising, which can cost serious money. Consider giving existing customers loyalty points or store credits in exchange for bringing new buyers.
- Entice existing customers to return. Current customers are the easiest and least expensive to convert. Give them reasons to keep coming back.
- Increase the amount of each transaction. This can provide much-needed revenue, though it tends to encourage one-and-done shopping sessions.
Here are six pointers for attracting new and existing buyers and increasing transaction values.
6 Revenue Boosters
Solve shoppers’ problems. Consumers need to know why one product is better than another. Solving pain points is the first step in winning them over. Showcase the benefits on landing and product pages. The pain points a product solves is crucial info.
For example, Pillow Cube explains its solutions in three methods: trigger words in the description (“tired,” kinked neck,” “back pain”), bullets to list benefits, and supporting visuals.
Illustrate the value. A product’s value is defined by the benefits the buyer receives for the price paid. Expensive goods often require educating shoppers about usage, versatility, and durability. A pair of scissors can cost just $1, but Fiskars’ run upwards of $20 and have a lifetime warranty. They’re made of stronger materials and are always sharp, which adds to their value.
Maintain a competitive edge. Spy on competitors to identify gaps you can fill. Customer service, product availability, and on-time shipping are essential to any store’s success and thus a priority.
Beating other stores’ prices on brand products might not be feasible, so consider alternatives, such as product bundling, VIP access, and priority support. Product subscriptions can generate reliable revenue, and volume pricing offers discounts without slashing average order values.
Show off your human side. Remind customers that your business supports real people. Introduce the staff and their accomplishments. Encourage employees to participate in the community, especially on social media.
Curate user-generated content. The best brands build communities. Encourage customers to share relevant photos and videos across social media. Then use a third-party tool to post that content on your ecommerce site.
Offer rewards. Consumers love kickbacks. A loyalty program that adds value to each purchase can help close sales. Consider lower thresholds for redeeming points so shoppers can reap the benefits sooner. Launch reward tiers based on earned points or total spend.