The Only 3 Ways to Grow Your Ecommerce Brand
Have you ever heard of Jay Abraham?
He is a marketing LEGEND.
According to Jay, there are only three ways to grow a business…
Any business…
Yep.
That means your e-commerce business too.
Only three ways.
1. Increase the number of customers
2. Increase the average transaction value
3. Increase the number of times a customer buys
Yes, it seems kind of simple and that’s the beauty of it.
Now... the fastest way to scale your business is to leverage ALL three of these things simultaneously.
Doing so gives your business something called “geometric growth.”
Here’s what I mean…
Take your currently monthly revenue.
Now…
Let's say you get 10% more customers.
You also increase the average transaction value by 10% more.
And you increase the numbers of times a customer buys by 10% more.
A 10% increase in these three areas equals a compounded 33% increase in revenues.
How?
Geometric growth.
The problem is… 99% of e-commerce entrepreneurs grow their business incrementally and linear, because they only focus on #1...
Getting more customers.
Makes sense if you think about it...
If you are making $25 net per order and you had 2x the orders, you would 2x your net.
Simple.
Sure it works, but it's also the slowest (and least effective) way to grow of the three.
Here's why: it takes a lot of EFFORT to get someone buy from you the first time.
It is far easier to get them to buy from you again.
It's easy to get so caught up in the exciting chase to attract and convert new customers, that the importance of how much a customer buys over its lifetime is overlooked.
And what happens if your ads become less effective, or FB/Google/IG changes their ad policies?
What would happen to the stability of your e-com business?
When you focus on geometric growth, allows your business to sustain, thrive and survive regardless of any ad network changes and gives you FREEDOM from your business.
If you do any of these three things well, you can grow your business pretty fast in a linear way...
But your business will eventually hit a plateau (if it hasn’t already).
If you harness the power of #2 or #3 you can propel your e-com business to geometric growth.
In order to grow your e-commerce business, one way of doing it is to increase the number of customers you have.
Duh!
Pretty simple right?
Obviously, the more customers you have, if you are profitable on your front end, then you make more money.
So that’s the first thing.
The second thing is to increase the transaction value of a customer.
One thing I noticed right away in the e-commerce space is so few people are using UPSELLS with their stores.
Coming from selling information products for the past decade, this is one of the things we MUST have in our sales funnels, otherwise there’s just no way you can be profitable on your traffic.
Upsells give you plenty more profit with very little additional cost.
Remember how costly it is to acquire new customers?
Upsells allow you to spend more to get a new customer, which allows you to dominate your market.
There’s a few ways you can do this using OCU or CartHook.
The third way to grow your e-com business is to increase the frequency of purchase from a customer.
As they say "The profits are in the backend"...
If you want to get your customers buying more often, you must use EMAIL.
Email marketing is the most powerful tool you can use to increase customer purchase frequency because it allows you to build a relationship with your customers.
Once you gain TRUST, all the real profit opportunities flow from that.
You'll get the second sale, the third sale...
Imagine if your store had an automated system that turns your one time customers into repeat buyers automatically, predictably and profitably.
This is almost like residual income, especially when it’s all automated and gives you FREEDOM.
Want to implement this in your business, and add an extra 20% (or more) to your monthly revenues without lifting a finger?
Dave, thanks for sharing!