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Traffic X Conversion rate X Average basket = $$

Writer's picture: Arnaud GuedjArnaud Guedj

People who have worked with me will recognize this equation that I had to repeat to them many times:

Traffic X Conversion Rate X Average Cart Value = €€ or $$ on this side of the Atlantic.

 

 

It's a rather basic equation, but it allows you to (re)focus on the fundamentals of your online business.


When the machine is no longer running smoothly, when the numbers are not there, and you see your CFO turning pale at the sight of your P&L, it's high time to dive into your KPIs (Key Performance Indicators for non-English speakers) and see where the problem lies.


It is essential to make a checklist of points to verify throughout this chain of cause and effect that will lead to the generation of your revenue.


Traffic: Is the traffic sufficient? Decreasing or increasing? Is there a change in the mix of traffic sources? Is it the consequence of a change in budget allocation? To which landing page?... a thousand questions to ask on the subject, and it's valid for the other two following parameters!


Conversion: Is the traffic arriving on the right landing page? Has this landing page been tested before to obtain the best conversion? Is it clear and does it have the necessary and sufficient information? Do the "buy" buttons work correctly? What is the abandonment rate? Do we have a minimum of clicks to put the product in the cart? Is the price correct? Is the eventual promotion live?...


Average Cart Value: Are the upsell and cross-sell correctly filled in the right place? Is the more "interesting" product well highlighted? Have we thought of a "good, better, best" presentation for the variants of this product, encouraging the purchase of the most performing or target-appropriate product?...


A checklist and its regular review should be your new best friends.


Imagine, this simple magic equation puts your fundamentals back in order.


Make it a weekly or even daily habit, depending on the activity of your site. Because, let's be honest, a customer won't wait for you to correct that typo; they'll go to your competitor with a single click.


So, dive into your dashboards and make sure everything is running smoothly!

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