It’s inevitable… a customer is selling your product on Amazon (or elsewhere) at a discount price. How dare they?! Don’t they know that drives the value down for your product? What do you do about it? In these scenarios, it’s good to have a MAP policy in place.Continue reading “Making a MAP Policy”
Every year I say I want to increase our online sales because, like all manufacturers, we make mad margins on products sold through our online store, which in turn improves our cash flow and bottom line. While our online sales have grown steadily year after year, for 2014, I intend to make a concerted effort to grow them more aggressively. How will I do that? Good question! I’m not entirely sure but thought I could use this blog as a way to share my journey as I go and hopefully help you shortcut the process.
So, for some background info, my goal is to increase our online sales by about 38% to cover the majority of our overhead expenses. It seems ambitious, but I believe it is doable if I put a solid plan together of how that will happen.
Basic business education tells us that there are generally three ways to increase sales:
- Sell more to existing customers
- Find new customers
- Raise prices (or decrease costs)
I want to consider working on all three things but we need to do some research first.
How do we get our sales today?
My first thought is to try and understand what’s been working so far. I generate the “Sales by Traffic Source” report from Shopify (our e-commerce platform) for 2013 to see where most of our purchasers are coming from and find out that the vast majority of traffic comes from pocampo.com, meaning most people go to our homepage before clicking into the store. Not terribly insightful. Next, I go to Google Analytics to dig deeper into how people end up on our homepage. (Disclaimer: I am definitely a Google Analytics novice, which means you may find better information elsewhere. However, being an entrepreneur means you spend time everyday figuring out something new, which is what I’m doing here)
Since I’m most interested in sales, I go to the conversions menu first, expand “Ecommerce” and check out our conversion rate and average order value, among other things. I plan to use these values for benchmarking our progress as we grow. Next, I click on “Time to Purchase”, also under Ecommerce. Here I find out that 88% of our visitors are purchasing on the same day that they are coming to our site and that 81% are purchasing on their first visit! This suggests to me that when people come to our site, they have already decided that they want to buy. To confirm that, I then opened up “Multi-Channel Funnels” and peek at “Path Length”. Yep, 70% of conversions have only one path, meaning the purchaser only clicked on one thing before coming to our store to buy, or just plain typed our URL into their browser window. While I like the thought of people exploring us on the web by searching through Google or whatnot, that apparently is not happening.
I’m curious what the first (and only) path is, so next I go to Acquisition>Channels and change the Conversions option to “Ecommerce”. Here I learn that Google is responsible for about 22% of both my traffic and online sales. The direct channel, most likely meaning people typing our URL directly into their browser, accounts for 19% of traffic and 27% of sales. Facebook comes in third place with 4% of traffic and 2% of sales. Our Mailchimp newsletter shows up towards the bottom of the list which surprises me because it seems like we always get a bunch of orders whenever we send out a newsletter. I suspect that some of the direct sales are from these newsletters and make a note to check our Mailchimp settings to make sure clicks are being tracked properly.
It’s now obvious that people have already decided that they want to buy a bag from us by the time they come to our site and that they are coming to our site from Google or just directly. If from Google, what words are they searching to find us? I go to Acquisition>Keywords>Organic to find out. Most are irksomely not provided, but there are a lot of variations of our brand name. So even if our consumers come to our website from Google, they already knew that they want Po Campo!
Okay, so it’s clear that people who purchase from our online store come to our website with the intent to buy and don’t dilly-dally. But do they come knowing which bag they want to buy, or do they just know they want a Po Campo bag and browse around a little first? To find out, I go to Audience>Overview and see that most visitors see about four of our pages before leaving. That hints at a little browsing and I’m interested which four pages people are going to most often, as well as the sequence of those pages. In Behavior>Behavior Flow, I sort by “Converters” and see that half of all traffic visits our homepage first. After that, most people go to the Bike Bags category, then to a specific bag, then to Cart. Sometimes after that third step, they go back and look at a different bag or look at a video. However, it does seem that people are coming to the site with a specific bag in mind.
Lesson 1: Our current customers know Po Campo well
Based on my first go at Google Analytics research, it seems safe to say that our sales are coming from people already very familiar with Po Campo. Therefore, it seems the best place to start is to figure out how to sell more to our current customers. See Part 2 for that.
Did I make any mistakes in my usage of Google Analytics? Set me straight in the comments below.