The 3 Levers of Profit 💰

Hey 👋

Welcome to Neighbourhood Post issue #20 - easy to implement digital marketing ideas straight through your metaphorical letterbox.

I hope you’ve had a good week.

I can’t believe it’s nearly March. Did you know we’re already 15% of the way through 2024? 😱

We better get to it. Here are 3 levers you can pull to increase your income.

👉 By the way, if you’ve missed previous newsletters you’ll find them here.

📩 And if you’ve been forwarded this email you can subscribe here.

How to increase your income

Apologies for the sensationalised subject line.

I’m not trying to sign you up to a pyramid scheme. 🤑

“3 metrics that will help you improve your website conversions” didn’t quite have the same ring to it, so I went for the bold option.

But it’s not untrue; there are 3 key levers you can pull to help increase your income, whether that’s sales, registrations or donations.

Sometimes we’re 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.

Let’s say for a minute that your website is where people convert, purchase or donate. In 90% of cases that’s probably true.

What are the levers we can pull to make sure your website works harder and generates more income?

Well, it’s represented by a simple formula:

Income = Web Traffic x Conversion Rate x Average Order Value

That calculation will give you the income you generate.

Let’s 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

Let’s put that in a working example:

1,000 people visit your website, 10% of them convert and the average order value is £20.

1000 x 10% x £20 = £2000

The best thing about these three metrics?

They have a compounding effect.

If you improve each metric by 25%, your income doesn’t increase by 25%, it increases by 95%.

(Quick maths, excuse any errors 🤓)

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?

Here’s 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 you’re a charity, look into the Google Ad Grant to get $10,000 worth of ads for free every month. When you’re 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 “Conversion Rate Optimisation”.

#3 Average Order Value: If you’re a charity, focus on and test your giving handles. If appropriate ask if people would like to give regularly instead. If you’re 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 you…

See you next week ✌️

What we’re looking at 👀 and listening to 👂

Do you know what, for the first time in over 20 weeks, we’re 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:

#1 Steve Jobs & The Best Marketing Advice Ever

#2 The Definitie Guide to Digital and AI

#3 2024 Social Media Trends

Before you go - we’ll never use these newsletters to directly sell you our services, but we’re always here if you need any expertise or support 👍