Mathew at FastPivot, an eCommerce company in NC (USA), wrote a post similar to what I have been saying in my posts on the process of selling win online: Traffic – Conversion – Administration – Repeat Business.
Which is not surprising as it’s a well known process amongst internet marketing and eCommerce professionals
However his spin on this process is worth repeating below,
There are areas of consistent focus where we have spent the last decade helping to grow businesses online. Ultimately every tactic should fall under the what I call the “Big Five Fundamentals of E-commerce.” In relative order of importance they are:
* average sale
* repeat purchases.
Brilliant huh? Sorry to provide something so obvious. Unfortunately, the obvious fundamentals get buried by the latest and greatest widget or trend.
Ultimately, without traffic, e-commerce is just a lonely hobby. Without conversion it is just an information site. Without some sort of consistent average transaction it isn’t a business. Without engagement (engaging design and compelling user interface), visitors just bounce away in seconds. Without a repeat purchase strategy, costs of customer acquisition dilute profits.
First a point about internet marketing. Much, if not all, is based on the 100 year old Direct Marketing field (Claude Hopkins) – despite many internet marketers saying there is a new marketing era.
Back to the post,
I think everyone agrees with traffic + conversion = sale
Some of us, including me, add repeat purchases.
But I’d include in conversion
- compelling content
- up front shipping costs
So engagement is just a subset of conversion.
Average sale is certainly worth measuring and is a key financial measure but it’s not really a step – more a measure of how successful your content is in driving purchase.
Perhaps I am getting too pedantic or argumentative… it’s the use of fundamentals that I think is wrong despite being a very good post.
Hmmmn… what do you think? Or am I becoming too academic by far!
BTW I love the phrase, “Ultimately, without traffic, e-commerce is just a lonely hobby”. Nice.