How to Increase Revenue: 3 Tips for Online Stores
Successful businesses are continually looking for new strategies and sources for increasing revenue. In today’s quickly transforming world of commerce, new revenue sources will come from innovation through technology and the way omni-channel companies do business.
1. Reduce Barriers to Purchase
Increase revenue by making customer transactions as easy as possible, also know as ‘frictionless commerce’. For omni-channel commerce, this also means enabling a customer to easily complete a transaction between channels without being slowed down along the way.
Every additional step toward a checkout reduces online sales revenue by 30%
Both Groupon and Amazon offer one-click checkout. Once a customer decides on an item, a single click charges the card on file and starts the delivery process to the default address in the system. Buy buttons on social media platforms also fast track a sales conversion.
2. Increase Cross-Sell and Up-Sell Opportunities
Increase revenue with cross-sell and up-sell opportunities by using customer data to target the right offer at the right time.
Amazon reported up-sell and cross-sell opportunities contributed up to 35% of their revenue
Best Buy uses the checkout process to cross-sell additional products and services. In this example, after adding an HP laptop to the shopping cart, a customer is offered a reduced price on a Microsoft Office subscription and HP product protection and support services.
Ecommerce store Red Dress Boutique cross-sells additional items when a browser is on a product page. The site suggests items that would complement the piece of clothing they are looking at with a ‘complete your look’ section.
Apple uses the up-sell technique after the customer decides to purchase a MacBook. Immediately after clicking the ‘add-to-cart’ button, Apple displays options to upgrade memory, capacity and software.
Dollar Shave Club creates up-sell opportunities while customers are in the decision making phase.
3. Personalized Customer Experience
Successful commerce businesses must be able to personalize experiences across all customer touchpoints and channels to capture more buyers and increase revenue. This requires the ability to gather and analyze customer data throughout their journey and across channels.
A study by Marketing Sherpa shows email personalization results in 750% higher click through rates and an increase in revenue.
With the right data, you can develop tailored interactions and targeted messaging that improves the customer experience.
- Make timely and relevant offers based on where the customer is on their buying journey.
- Give customers what they want, when they want it.
- Deliver tailored customer experiences available across all touchpoints
This DSW email campaign is targeted specifically to customers who received a $10 certificate during a recent in-store purchase. By segmenting these customers, the shoe company was able to develop a targeted and relevant campaign.
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A Guide to Product Bundling: Tips for Ecommerce Success