Optimized Ecommerce EP 003 – How to Use Revenue Optimization for Chain Reaction Marketing
Welcome to Episode 003 of Optimized Ecommerce – How to Use Revenue Optimization for Chain Reaction Marketing. We are your hosts, Tanner Larsson CEO of BGS and Matthew Stafford CMO of BGS.
BGS means Build Grow Scale! It is a community that we founded where eCommerce entrepreneurs and physical product sellers come to learn how to take their businesses to the next level.
In this week’s episode, we shift our focus to Revenue Optimization. By the end of this episode, you will learn how to make more money from your store without lowering the price of your product or going on sale. So let’s dive in this week’s Optimized Ecommerce Podcast!
Here’s just a taste of what we talked about today:
The Less Profitable Copycat
BGS is all about optimizing a store’s revenue to make the maximum amount of money for you — the store owner.
Matt and Tanner have already figured out Revenue Optimization a long time ago. Now, thousands of Shopify, e-commerce, and WooCommerce, Magento, big commerce stores, lemonade stand, and all these different stores that have come in contact on a yearly basis are all focusing on the wrong stuff.
And the problem is that they are all copycats. They see Store A do one thing. They copy Store A and they look at all of these big name brand stores and start copying them. That is when it gets even worse.
You need to ask one important question. How do you know that the store you’re copying actually knows what’s working? Or that they are even profitable?
BGS has several partner stores that do huge volume optimization — working consistently against store owners who want something that will not work.
Some store owners might say, “Oh, well, they’re using it.”
Well, “they” got funding. “They” don’t have to be profitable, but our store owners at BGS want to be profitable. So, there must always be a balance between the things that need to be done.
Set Your Store to Make the Maximum Amount of Money for You
BGS is big on not doing the copycat marketing and letting the data describe what goes on. Now, when you look at your data, you realize that there is a lot of stuff that you could fix. So, what’s the stuff that you should fix first?
You must only fix what moves the needle. So, focus on that 20% that gives you 80% of the results.
It is not about more, honestly. For example, get rid of half the apps or delete a ton of theme features. Fix only what moves the needle.
Another part of it is trying to figure out how to make an impact. A lot of guys in the split testing world, and especially in the conversion rate, would say, “Oh, let’s test button colors.”
Well, that’s more of a whisper than a shout. There are a lot of more important things that you should do. How about testing your browser segments or testing your page load?
Revenue Optimization is Maximizing the Already Existing Traffic
Putting the existing traffic — that comes to your store — to its highest and best use is essentially Revenue Optimization.
As a store owner, you need to have a holistic approach on how you view your store. Don’t just focus on traffic. There will be plenty of traffic like we have talked about in previous episodes.
Focus on the buyer’s journey. Revenue Optimization is about the time they land on your website until the time that they give you their money.
We also discussed a few other fun topics, including:
- Revenue Optimization does not stop when the sale is made.
- Revenue Optimization is not the same with Conversion Rate Optimization.
- Your existing customers are your most profitable source of revenue.
But you’ll have to watch or listen to the episode to hear about those!
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