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In episode 66 of the Customers Who Click podcast, I had a great chat with Chase Clymer about optimising DTC brands for growth.
It must be frustrating to hit that $1 million in revenue and get stuck there. You’ve worked hard to build your business and hitting that mark feels pretty amazing but you know your store could be making $10 million, easily. Yet, you feel like you’re running around in circles - plenty of traffic, high acquisition costs, many on-time buyers, few return purchases and no end in sight.
There is a method to this madness - optimising for growth, or, making the most out of each visitor. Namely, increasing your conversion rates, average order value and number of sessions. Let me warn you though - there is no magic trick or hack to boost those KPIs. Optimising for growth is never done.
Chase Clymer is the Co-founder of Electric Eye, an agency that increases sales for ecommerce brands. Chase is also the host of Honest Ecommerce, a weekly podcast, community & educational resource providing online store owners with honest, actionable advice to increase their sales and grow their business. You can connect with him on LinkedIn, Twitter or head over to his website https://electriceye.io/.
03:53 - 06:26 - Biggest Mistakes to Avoid When Trying to Scale - Don’t even approach scaling your business without a process in place. Start by identifying your top KIPs. Chase and his team start with 3 main KPI’s: conversion rate, average order value and number of sessions your store is getting. Then, they focus on increasing all three of them. Scaling really is about the systems, functionalities and resources you’re using to achieve it.
06:36 - 54:53 - Optimising for Growth - Where to Start? - Don’t bypass the due diligence - make sure you’re choosing the right person / agency to help you scale. Brands come in all shapes and sizes and it’s best to work with someone who specializes in businesses like yours. For example, Chase always looks for brands with “ugly” websites - one of those you look at and wonder “how did they make it to $1 million?”.
Then comes the automation and CRO, but don’t optimise what you and your team think should be optimised - use customer data and feedback to guide your tests. Pro tip for Shopify store owners: duplicate your theme and test only on one of them. That way, you’ll easily discard the tests instead of having to continuously tweak your site and add unnecessary plugins or widgets that would only slow down your site.
Start optimsing for growth at the very beginning - look at your current tech stack and whether or not it’s slowing down your website speed. So many brands overlook this fundamental element of customer experience. But the customers just won’t wait if your site is taking too long to load. They’ll abandon your site quicker than you think, searching for competitors that offer better on-site experience.
Don’t fall into the trap of attracting a tonne of new traffic to your site that purchase one time and never return. You’ll never scale if you’re spending so much money on acquisition and do nothing to retain those people. I’m a huge fan of cross-selling and upselling to increase AOV (Average Order Value), just make sure the product recommendations are contextually relevant to the customer.
And finally, don’t prioritise increasing sessions. If you begin with boosting conversion rates and average order values, you’ll pay a lot less for acquiring new customers. Doing all these smart remarketing campaigns and automations based around the relationships that you own with your customers is a lot more profitable long-term.