How much traffic do you need to hit your revenue goal?!?!
Ok. Let's get real here a minute!
If you read mystrategyblog, you may have walked away feeling even more overwhelmed. And I don't blame you. That sh*t is hard! And can be energetically draining too. Anything involving creativity or strategy can be very draining, EVEN if you enjoy doing it, but especially if you don't.
PS in advance: if you want to jump STRAIGHT to the calculator itself, or watching a video is more your jam, here are those links:
The thing is, it (strategy) really is the key to your success.
You don't have to do the strategic planning and decision making for your business if you don't want to - but somebody sure does! And if you aren't able to hire that out yet, then ya gotta wear that hat, boo! And even if you can hire it out, you need to make sure you find the right person (which can be a doozy). Because hiring someone for $15-20 per hour to work on social media is not the same thing as hiring someone that's really going to dig in and think strategically about your entire business. Strategy is so much more than just posting. Actually I talk about this in my blog on investing if you want more details there!
Anyway! Let's back it up a little. Why is strategy THIS important. Can't you just do the things? And make the sales?
Well. Maybe! But what are your goals? And do you know how much website traffic you'll need to hit those goals?
I hear this (err see someone posting about this) every single day: I'm getting lots of traffic, but no sales! What's wrong with my website!
Could there be something wrong with your website? Sure! And we should always be working to improve and optimize our website anyway! BUT the real issue is: what in the heck do you consider a lot of traffic?? Did you know that our industry standard in terms of conversion rate is only 2%? That means that out of every 100 visitors, only about 2 will convert (and that's IF your conversion rate is the standard). And then of those 2%, what did these customers actually spend with you? This would be your average cart total.
These are two things you can strategize around to increase revenue:
Increasing your conversion rate (by optimizing your website)
Increasing your average cart total value (could play around with bundles, or adjusting your free shipping threshold, or upsell apps, as a few ideas)
BUT, if you aren't driving enough traffic, then your efforts won't be very fruitful for ya. So, first, let's figure out how much traffic you really need to hit your revenue goal.
First, you'll need your:
Current monthly revenue goal (if you don't have goals set, I'd sit down and work on this first, I'll write a blog on that next week, but if you aren't sure - at least think about what you need to bring it to in order to not only cover your expenses, but pay yourself as well)
Conversion rate (let's say over the past 90 days)
Average cart total values (again, let's say over the last 90 days)
Total website traffic for the last 90 days
You will find most of this information right in your Shopify analytics dashboard:
Ok - now, head over to my handy calculatorand plug all these values into the yellow fields (the white fields have formulas, so don't mess with those haha)! I'm just using some dummy values here:
To wrap this up...
So now you can see:
How much traffic you need to hit your goals
And how many times over you need to increase your marketing efforts to get there!
See why you need strategy now? Cuz those additional traffic visits ain't gonna come for free (if only)!
OK - this is only the beginning girl. You have to know the facts before you can formulate your plan, right? Now back to the strategizing??? I hope :)! And you may want to watch my video on this too, below!
Anyway, always here to help you keep it real + succeed! - Angela