What you’re going to learn: How you can capture more revenue for your Shopify store
Why this matters: You are probably leaving a lot of money behind, which is something you shouldn’t do.
The most obvious way for a Shopify store to make money is for someone to come to the site and make a purchase. We usually think of that person as someone new who has never been to our site before, and comes in after seeing an ad or other marketing piece.
That looks something like this:
But if your site is only focused on sales to new traffic, you are leaving a lot of possible income out in the cold, rainy winter. Someone else is going to come along and pick it up.
If you want to be the one to bring that money in and give it a warm and loving home, you need to a plan. You need a revenue capture strategy.
A revenue capture strategy is a plan to increase:
If you want to do move away from one-and-done purchases and into more profitable territory, you need a plan. That plan will guide the actions you take to increase key metrics and bring more cash into your business on a regular basis.
That’s what a revenue capture strategy is. It is taking a step back and identifying where you are missing out on opportunities to increase cash flow. Then, you figure out what tactics can strengthen these weaks areas and how you could implement them in your business.
This is less of a single thing you do, and more of a central strategy that informs other things. If you decide that part of your plan is to increase average order values, you can then examine different ways you can do that. If you want to increase conversion rates, there are many tactics that branch out and give you options.
More than anything, your revenue capture strategy highlights all the places you are missing out on money right now, and creates the basis for how you will reclaim that lost money for your business.
How this works depends on what kind of product you are selling and your target market. A store that is selling a single large product will implement things differently than one that sells dozens or hundreds of smaller products. Marketplace stores will be different than heavily branded, personality-driven stores.
No matter who or what you are, some of the basic ideas are:
Here are some questions you need to be able to answer if you want to create a strategy that works for your store:
When you know the answers to these kinds of questions, you can begin to see where more money might come from for your store. When you see where that money could come from, you can start to plan how you can make it happen.
If you want to want more money coming in than you get from one-off purchases, you need to have a plan to make that happen.
You are looking to increase the number of different ways you can generate sales and revenue from whatever amount of traffic you get right now. You want higher conversion rates, higher average order values, and for more customers to stick around and spend more over time. Once these things are set up, they will act as multipliers as your traffic grows, making everything you do more profitable.
Make it more enticing for people to buy from you. Make it easier to buy more. Build a long-lasting relationship with them.
When you’ve done all that, you can jump into a swimming pool full of money like Scrooge McDuck. Or invest it in an index fund. I don’t care, I’m not your financial advisor. I’m just here to help you make more money, not decide how to spend it.