The Only 3 Ways To Grow Your Shopify Store
Want The Specific Tactics To Grow Your Vegan Shopify Store Faster Without Any Guesswork? Just Focus On The 3 Areas Below...
Tired Of A Million Ideas?
Let me show you why there are only 3 ways to grow a Shopify store and how every shiny new tactic fits into one of these boxes.
In a world of information overload, you can literally find a million ideas to grow your business.
But what you really want is the single idea that will be most effective for your business right now.
By understanding the only 3 ways to grow a business explained below, you’ll be able to make an informed decision on what to focus on next.
The Only 3 Ways To Grow Your Business
Many years ago, Jay Abraham showed that there are only 3 ways to grow the revenue of a business:
1. Increase your number of customers
2. Increase your average transaction size
3. Increase your frequency of purchase
Every sales and marketing tactic you see, falls into these 3 buckets.
So let's take a look at how we do each one and then apply it to your Shopify store.
1. Increase Your Number Of Customers
The goal is to invest $1,000 on advertising and immediately make back your $1,000 while acquiring new customers.
Since you broke even or better on your advertising investment... you got those new customers for free.
And once we've got a profitable Customer Acquisition System running, we can scale it up as desired.
That simply means increasing your budget and adding more advertising channels, because you know you’re always going to make money.
2. Increase Your Average Transaction Size
Obviously, customer acquisition becomes a lot easier if you’re selling a $1,000 product instead of a $10 one, because you have more to invest in advertising.
So you want to maximize your customer’s initial purchase by creating an Invincible Offer and using upsells, cross sells and other strategies.
After all, the best time to sell something is when your customer is already buying something else.
However, please remember the key to selling more is always to deliver a lot more value than your price (no shenanigans!).
3. Increase Your Frequency Of Purchase
If your customers buy once a year and you can get them to buy twice a year… you’ve just doubled your business.
So ask yourself how well you’re looking after your existing customers’ needs and how you could better service them.
There is also a wealth of profit lying hidden in your email list because customers who bought once are likely to buy again with the right incentive.
Most businesses we work with have 30-45% of their revenue driven by email marketing alone, so ask yourself just how much money you might be leaving on the table.
How To Double Your Business
Revenue = Number Of Customers x Average Transaction Size x Frequency Of Purchase
Let’s say a business is doing $1,000,000 in sales like this…
1,000 customers x $100 average transaction x 10 purchases a year
Most people would try to get 2,000 customers to double sales.
But It Actually Only Takes 26%...
If we increase each area by just 26%…
1,260 customers x $126 average transaction x 12.6 purchases a year = $2,000,376
Just with a little effort at each leverage point.
So if you just focus on these 3 things and work to increase each one, your business will grow.
Applying This To Your Shopify Store
For ecommerce, I find it easier to explain and measure these 3 buckets which align, but don't completely overlap:
2. Store Conversion Rate
3. Email Marketing
By analyzing the metrics of these 3 areas, you can find out where to focus your efforts next.
Then implement the individual Revenue Lever tactics to maximize your revenue.