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Who Am I?
A Better Understanding of What Metrics Should Be Driving Your Business
Tackle the Two Core Metrics That Most Business Owners Struggle With Walk Away With One Big Monetization Strategy That You Can Implement In Your Business
Order Frequency Sales Volume by Product Inventory Levels Cost of Goods Sold Return Rate Calls Per Day Response Time Satisfaction Level Complaints/Claim Ratio List Size Open and Click Through Rates
Leads/Visitors Per Day Conversion Rate Retention Rate Order Frequency Sales Growth/trends Profit Margins Life Time Value Cost Per Acquisition Ad Performance Traffic Sources
What Are The
for Growth and Scaling?
Total Cost of Campaign / Total Number of Leads Cost Per Click (CPC) Cost Per New Subscriber/Member Cost Per Converted Sale Total Campaign Cost could be a blended cost of multiple methods of advertising - Paid Advertising + Retargeting Profit Margin = Order Total – Cost of Goods $2435 - $1607 = $828
RTA Average Cost Per Acquisition = $130
30 Second Exercise Time!!!
Simple Definition: The average amount a consumer will spend from acquisition through the end of the relationship with a business Order Total x Average # of Purchases x
Average Retention Time
More Accurate: Profit Margin x Average # of Purchases x Average Retention Time
Profit Margin = Order Total – (Cost of Goods Sold + Cost Per Acquisition)
30 Second Exercise Time!!!
(Ave Order Size – COGS) x Order Frequency x Retention Time ($2435 - $1607) x 1.78 x 1.4 = $2063.37
Segmented By Type of Customer Homeowner: ($2263 - $1494) x 1.45 x 1 = $1115.05 Professional: ($2534 - $2027) x 3.46 x 2.3 = $4034.70
Competitive Analysis: Profit Margin = Order Total – Cost of Goods $2435 - $1607 = $828
Profit vs. Life Time Value E-book Niche: Average Order Value: $69.99 Average Cost Per Acquisition: $50 Average Profit: $19.99 Average Order Value: $49.99 Average Upsells from Mailing List: $110 Average Cost Per Acquisition: $80.00 Average Life Time Value: $79.99 By using LTV versus Profit, they could pay almost twice as much per customer and make 4x the profit.
How Do We Monetize Our Business To Increase Life Time Value?
Recommended Products
Average Order Value Increase of $37
Email
Average Order Value Increase of $53
Backend Upsells
Average Order Value Increase of $185
Strategic Partnerships
Retention Rates Increase by 4x Cost Per Acquisition Dropped by 90%
Value Creation
Increase in conversion rate: 12.5% Increase in average order size: 32% BONUS We raised the prices on the site by 10% as a test and conversion rates remained the same
Customized Shopping Experiences Conversion Rate: 2% Average Order: $2435
Conversion Rate: 22% Average Order: $2592
Conversion Rate: 62% Average Order: $2803
Conversion Rate: 68% Average Order: $2829 20x more likely to buy granite or appliances
Loyalty Program
37% Higher Retention Rate 13% Higher Order Frequency Higher LTV Per Customer
Landed Cost Ranges from $3.50 - $8 Free Shipping Offer: $1-2 Ballpark COGS: $4.50 - $10
Amazon Price Range: $12.99 - $20.99
Upsell # 1
Upsell # 2
Upsell #3
Upsell #4
Upsell #5
Finally!!!
Which Model Would You Choose? Amazon (Order Value – COGS)
$29.99 - $10 = $19.99
Profit Of Each Order (Order Value – COGS)
$56 - $10 = $46
Monetized Funnel (Profit + Upsells) $56 + $15-$172= $71-228
Private Room
Ridiculous Features
Really???? Dog Massages?
What’s So Special About An Overpriced Dog Spa? On the phone: Gather my info Cost For Family Room with TV per night: $100 Extra Play Time: $10 Email & remarketing campaign When I get there: Cost of the Bone He Stole: $8 Bath Before They Leave: $40 Two Treats a Day: $5 After I leave: Obedience Training: $500
Total Cost To Stay There: A year’s tuition at Harvard
For a copy of the presentation go to: https://www.rtacabinetstore.com/Vegas90days
A Better Understanding of What Metrics Should Be Driving Your Business
Tackle the Two Core Metrics That Most Business Owners Struggle With Walk Away With One Big Monetization Strategy That You Can Implement In Your Business
Order Frequency Sales Volume by Product Inventory Levels Cost of Goods Sold Return Rate Calls Per Day Response Time Satisfaction Level Complaints/Claim Ratio List Size Open and Click Through Rates
Leads/Visitors Per Day Conversion Rate Retention Rate Order Frequency Sales Growth/trends Profit Margins Life Time Value Cost Per Acquisition Ad Performance Traffic Sources
What Are The
for Growth and Scaling?
Total Cost of Campaign / Total Number of Leads Cost Per Click (CPC) Cost Per New Subscriber/Member Cost Per Converted Sale Total Campaign Cost could be a blended cost of multiple methods of advertising - Paid Advertising + Retargeting Profit Margin = Order Total – Cost of Goods $2435 - $1607 = $828
RTA Average Cost Per Acquisition = $130
30 Second Exercise Time!!!
Simple Definition: The average amount a consumer will spend from acquisition through the end of the relationship with a business Order Total x Average # of Purchases x
Average Retention Time
More Accurate: Profit Margin x Average # of Purchases x Average Retention Time
Profit Margin = Order Total – (Cost of Goods Sold + Cost Per Acquisition)
30 Second Exercise Time!!!
(Ave Order Size – COGS) x Order Frequency x Retention Time ($2435 - $1607) x 1.78 x 1.4 = $2063.37
Segmented By Type of Customer Homeowner: ($2263 - $1494) x 1.45 x 1 = $1115.05 Professional: ($2534 - $2027) x 3.46 x 2.3 = $4034.70
Competitive Analysis: Profit Margin = Order Total – Cost of Goods $2435 - $1607 = $828
Profit vs. Life Time Value E-book Niche: Average Order Value: $69.99 Average Cost Per Acquisition: $50 Average Profit: $19.99 Average Order Value: $49.99 Average Upsells from Mailing List: $110 Average Cost Per Acquisition: $80.00 Average Life Time Value: $79.99 By using LTV versus Profit, they could pay almost twice as much per customer and make 4x the profit.
How Do We Monetize Our Business To Increase Life Time Value?
Recommended Products
Average Order Value Increase of $37
Average Order Value Increase of $53
Backend Upsells
Average Order Value Increase of $185
Strategic Partnerships
Retention Rates Increase by 4x Cost Per Acquisition Dropped by 90%
Value Creation
Increase in conversion rate: 12.5% Increase in average order size: 32% BONUS We raised the prices on the site by 10% as a test and conversion rates remained the same
Customized Shopping Experiences Conversion Rate: 2% Average Order: $2435
Conversion Rate: 22% Average Order: $2592
Conversion Rate: 62% Average Order: $2803
Conversion Rate: 68% Average Order: $2829 20x more likely to buy granite or appliances
Loyalty Program
37% Higher Retention Rate 13% Higher Order Frequency Higher LTV Per Customer
Landed Cost Ranges from $3.50 - $8 Free Shipping Offer: $1-2 Ballpark COGS: $4.50 - $10
Amazon Price Range: $12.99 - $20.99
Upsell # 1
Upsell # 2
Upsell #3
Upsell #4
Upsell #5
Finally!!!
Which Model Would You Choose? Amazon (Order Value – COGS)
$29.99 - $10 = $19.99
Profit Of Each Order (Order Value – COGS)
$56 - $10 = $46
Monetized Funnel (Profit + Upsells) $56 + $15-$172= $71-228
Private Room
Ridiculous Features
Really???? Dog Massages?
What’s So Special About An Overpriced Dog Spa? On the phone: Gather my info Cost For Family Room with TV per night: $100 Extra Play Time: $10 Email & remarketing campaign When I get there: Cost of the Bone He Stole: $8 Bath Before They Leave: $40 Two Treats a Day: $5 After I leave: Obedience Training: $500
Total Cost To Stay There: A year’s tuition at Harvard
For a copy of the presentation go to: https://www.rtacabinetstore.com/Vegas90days
