How to increase revenue from current traffic by “inverting” your sales funnel

Are you trying to increase your e-commerce store revenue from your existing traffic and customer base? Then this is for you.

Today I want to talk to you about the exact process and framework that we use with every single client to increase their revenue without needing to increase traffic or customer base.

It is called the Inversion Process. The whole premise is that if you know where you want to go at the end, you can then work your way backwards by deciding what you need to change or accomplish to get there. 

So let’s take a look at how you invert the purchase funnel process to drive more revenue and profit without driving more traffic.

There are three levers you can pull to increase your store revenue:

  • Increase traffic
  • Improve conversions 
  • Improve customer lifetime value

1. In the Inversion process, the first step is to focus on increasing customer lifetime value

       There are two things which can generate higher customer lifetime value:

  • Average order value: How much a customer is purchasing from you when they buy. It can be improve through upsells or cross-sells.
  • Repeat purchase rate: Number of times a customer is coming back to buy again. It can be improve through SMS campaigns, loyalty programs or subscription programs.   

Improving these two metrics will automatically drive higher profit margins and higher revenue on the same amount of traffic & customers.

2. The second step is to improve conversion rates

         You can do this by:

  • Improving brand & product desirability by making people create an emotional connection with the brand. 
  • Removing barriers to purchase by understanding the customers and logically breaking down the barriers for them. 

To summarize, the first step of the Inversion Process is to increase customer lifetime value, and the second step is to improve conversion rates. 

Once these are done, you can then focus on increasing traffic and scaling-up.

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