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- The 3 Levers of Profit đ°
The 3 Levers of Profit đ°
How to boost your income / donations
Hey đ
Welcome to Neighbourhood Post issue #20 - easy to implement digital marketing ideas straight through your metaphorical letterbox.
I hope youâve had a good week.
I canât believe itâs nearly March. Did you know weâre already 15% of the way through 2024? đ±
We better get to it. Here are 3 levers you can pull to increase your income.
đ By the way, if youâve missed previous newsletters youâll find them here.
đ© And if youâve been forwarded this email you can subscribe here.
How to increase your income
Apologies for the sensationalised subject line.
Iâm not trying to sign you up to a pyramid scheme. đ€
â3 metrics that will help you improve your website conversionsâ didnât quite have the same ring to it, so I went for the bold option.
But itâs not untrue; there are 3 key levers you can pull to help increase your income, whether thatâs sales, registrations or donations.
Sometimes weâre drawn to the slightly more attractive digital channels - organic & paid social, content, email, influencers etc.
But all of it is meaningless if you send them to an ineffective website.
Letâs say for a minute that your website is where people convert, purchase or donate. In 90% of cases thatâs probably true.
What are the levers we can pull to make sure your website works harder and generates more income?
Well, itâs represented by a simple formula:
Income = Web Traffic x Conversion Rate x Average Order Value
That calculation will give you the income you generate.
Letâs break that down:
Website traffic: The number of people who visit your website
Conversion rate: The % of website traffic that sign up / purchase / donate
Average order value: The average value of transactions or donations
Letâs put that in a working example:
1,000 people visit your website, 10% of them convert and the average order value is ÂŁ20.
1000 x 10% x ÂŁ20 = ÂŁ2000
The best thing about these three metrics?
They have a compounding effect.
If you improve each metric by 25%, your income doesnât increase by 25%, it increases by 95%.
(Quick maths, excuse any errors đ€)
So question number one - do you know what those three figures are for your charity or business?
And question number two - do you have a plan to improve them?
Hereâs a starter for ten:
#1 Web Traffic: Look at either paid social campaigns or your email activity. Organic social can play a part but its harder to move the needle with organic social content. Leverage partnerships with other organisations to send more people to your site. If youâre a charity, look into the Google Ad Grant to get $10,000 worth of ads for free every month. When youâre planning to increase traffic, remember you want quality, targeted traffic.
#2 Conversion Rate: Look into ways to improve the User Experience (UX) of your website. Try building a specific landing page to send traffic to, rather than your home page. Clearly explain the benefits/values of what you offer with words and images. Build trust using reviews, quotes and testimonials. Have one clear call to action rather than several competing ones. If you want to learn more, Google âConversion Rate Optimisationâ.
#3 Average Order Value: If youâre a charity, focus on and test your giving handles. If appropriate ask if people would like to give regularly instead. If youâre selling something, upsell during the checkout process to cross sell products or add ons.
So do you know what the benchmark is for your figures?
And what would it look like for you to draw up a plan to improve each one of them over the next 6 months?
Over to youâŠ
See you next week âïž
What weâre looking at đ and listening to đ
Do you know what, for the first time in over 20 weeks, weâre not reading, listening to or reading anything new.
So in the absence of new things, here are 3 of my favourite previous editions of the Newsletter for you to peruse:
Before you go - weâll never use these newsletters to directly sell you our services, but weâre always here if you need any expertise or support đ