Half term week can feel a tad taxing (with or without kids).
Thankfully pancake day was strategically timed to get you through.
Lemon and sugar (obvs) or this epic spread from a cool Welsh D2C brand.
So I’ll keep this one as actionable as poss.
Last year, after over a decade in business, my client came to me as their performance was declining.
“Our Instagram is more for show these days and our ad spend seems to be going up each week”
After a detailed audit of the data and the web design, it was crystal clear:
There were some conversion issues that if fixed, would make a dramatic difference:
Imagery in situ - as a furniture brand, showcasing this matters more than a simple product shot
Highlighting the sourcing process - premium prices require a premium experience.
Visitors want an alignment of values and ethics to justify the price.
The obvious one but easily missed - shipping transparency for a global customer base. Only in the announcement bar and SO easily missed.
3 months later, it’s safe to say the optimisations worked:
HOW CAN YOU APPLY THIS TO YOUR BRAND?
Lets’s start with a real example:
10,000 visitors a month
£2 cost per click
Ad spend: £20,000/month
2.5% conversion rate = 250 orders
Average order value (AOV): £50
Monthly revenue: £12,500
Cost to acquire each customer (CAC): £80
Yes, this does lose money on the 1st order. The reality for a lot of premium D2C brands.
But that’s why LTV matters - so you know you’ll make this back on the 2nd / 3rd purchase.
That means every single customer you fail to convert is twice as expensive.
You paid £2 to get them there and you lost out before you even got going.
Watch what happens when you improve your conversion rate.
Not a total overhaul. But let’s plot some realistic scenarios:
A 5% improvement (2.5% → 2.625%)
Orders go to 262. Revenue hits £13,100. CAC drops to £76.
An extra £600 a month, and 12 more customers entering your world..
A 10% improvement (2.5% → 2.75%)
Orders go to 275. Revenue hits £13,750. CAC drops to £72.
An extra £1,250 a month and 25 more customers who could be buying from you in the long run.
A dreamy 50% improvement (2.5% → 3.75%)
Orders go to 375. Revenue hits £18,750. CAC drops to £53.
That's £6,250 more revenue every month and 125 additional customers in your world without spending a penny more on ads.
THE 5 MINUTE MATHS YOU CAN DO TODAY
Grab a spreadsheet or piece of paper (if you really want to do the whole napkin thing)
Open up your Shopify analytics (or GA).
Note down the metrics in bold for your business
Site Visitors per month
CPC
Ad spend
Conversion rate (CVR)
Average order value (AOV)
Monthly revenue
Cost to acquire each customer (CAC)
With this all laid out in front of you, is there any obvious weak link?
YOUR SITE IMPACTS ALL OF THESE
A 10% improvement in conversion rate may sound like a stretch but
Impactful changes compound results.
Say you optimised your checkout.
Increased trust.
Improved your product imagery
And there you have it - you’ve upped the ante to 10%
So what would you rather spending HOURS next week trying to gain attention (looking at you Insta). Increase your ad spend, again!
OR
Spend a few strategic hours on your website.
I’ll let you decide…!
If you'd like to run these numbers on your own business and work out where your biggest opportunities are, let's get on a call.
No pitch. Just an honest look at your metrics as I know they can be intimidating.
Let’s dive in together:
ARE YOU FREE NEXT WEEK?
I’d putting on a local coffee morning to gather anyone working in eCom. Reply if you can come along or sign up properly here
As a Yorkshire lass, the Bronte sisters had a piece of my heart when I was young.
So I went to see Wuthering Heights last night.
Jacob did a solid effort on the accent front.
Definitely feels like it shouldn’t be compared to the original but as a standalone, it’s a solid (slightly sordid) dedication to love.
And we all could do with a bit of that.
Laura
