Sustainable E-commerce Growth Is About Knowing Where To Work
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Sustainable E-commerce Growth Is About Knowing Where To Work

If ever we had a client that had kind
of growth or dried up, usually it pointed to this KPI and what it is, is it basically is the number
of customers you’ve recruited over the past six months from that date backwards,
and then looking at that year on year. So, you know, it’s difficult to do it
month by month because you might have, you know, let’s say you do brochures or
Easters falling in a slightly different month or something like that. You’re going to recruit some customers in
one month and then maybe recruit them the next month, next year. And so therefore, you need to do over six months to
give an average of the customers recruited in the past and then look,
look at that year and year. And that gives you very good insight of
whether or not you are recruiting enough customers to sustain growth because you
really want, if you want to consider growth, obviously you can, your
existing customers are going to churn. Let’s say you’re selling baby clothing or something like that. Those people, those customers are
going to the children are gonna grow past the size where
they could buy clothes from you. So therefore you need to be recruiting
customers to fill that funnel. -Essentially all the time. I think that, yeah, I think it’s quite hard start to get your head around, but, but essentially it’s
like, it manifest itself. And this is why
it’s interesting is because Let’s say we will say, you know, the
average conversion rate for new customers is about 2% so the only had new business
in that 2% but if you had existing customers buying, you know, that’s where
you get the 5-6% conversion rates. So if you are just looking at your
conversion rates and going, Hey, your conversion rates are five
to 6% brilliant, tick. But actually that is just existing
customers buying and you’ve not got any new customers coming through the,
you know, in your site. It’s some point those existing customers
are going to stop buying, and they just fall off. So you have to then focus on recruiting your new customers.

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