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Increase Revenue and Grow your Business with 3 Key Performance Indicators (KPI's)

Module 1, Lesson 2: The secret formula

Increase Revenue and Grow your Business with 3 Key Performance Indicators (KPI's)

Module 1, Lesson 2: The secret formula

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Course content (20 lessons)

Module 0: Overview

Module 0, Lesson 1: The goal of the course 0:56

Module 0, Lesson 2: Why you need to have clear KPIs to scale1:00

01 |Module 1: What Really Matters

Module 1, Lesson 1: How much does it cost to acquire customers?1:38

Module 1, Lesson 2: The secret formula1:31

Module 1, Lesson 3: The KPIs that double your revenue0:35

02 |Module 2: How to Improve KPI #1 (Average Order Value)

Module 2, Lesson 1: What is the AOV?1:09

Module 2, Lesson 2: Product page1:34

Module 2, Lesson 3: Cart page1:47

Module 2, Lesson 4: Checkout1:35

Module 2, Lesson 5: Thank you page and post-purchase2:06

Module 2, Lesson 6: AOV for single product store0:56

03 |Module 3: How to Improve KPI #2 (Frequency)

Module 3, Lesson 1: What is the Frequency (F)?0:39

Module 3, Lesson 2: Subscription business model1:01

Module 3, Lesson 3: Email and SMS Automation1:22

Module 3, Lesson 4: Loyalty program1:30

04 |Module 4: How to Improve KPI #3 (Conversion Rate)

Module 4, Lesson 1: What is the Conversion Rate (CvR)?1:35

Module 4, Lesson 2: The 6 Cialdini Principles0:50

Module 4, Lesson 4: The Fogg Behavioural Model1:27

Module 4, Lesson 5: Conclusion and Next steps1:16

Module 0: Overview

Module 0, Lesson 1: The goal of the course 0:56

Module 0, Lesson 2: Why you need to have clear KPIs to scale1:00

01 |Module 1: What Really Matters

Module 1, Lesson 1: How much does it cost to acquire customers?1:38

Module 1, Lesson 2: The secret formula1:31

Module 1, Lesson 3: The KPIs that double your revenue0:35

02 |Module 2: How to Improve KPI #1 (Average Order Value)

Module 2, Lesson 1: What is the AOV?1:09

Module 2, Lesson 2: Product page1:34

Module 2, Lesson 3: Cart page1:47

Module 2, Lesson 4: Checkout1:35

Module 2, Lesson 5: Thank you page and post-purchase2:06

Module 2, Lesson 6: AOV for single product store0:56

03 |Module 3: How to Improve KPI #2 (Frequency)

Module 3, Lesson 1: What is the Frequency (F)?0:39

Module 3, Lesson 2: Subscription business model1:01

Module 3, Lesson 3: Email and SMS Automation1:22

Module 3, Lesson 4: Loyalty program1:30

04 |Module 4: How to Improve KPI #3 (Conversion Rate)

Module 4, Lesson 1: What is the Conversion Rate (CvR)?1:35

Module 4, Lesson 2: The 6 Cialdini Principles0:50

Module 4, Lesson 4: The Fogg Behavioural Model1:27

Module 4, Lesson 5: Conclusion and Next steps1:16

In this lesson, you will learn which one is the revenue formula and which one are the KPIs that impact the bottom line of your business, the revenue.

[MUSIC PLAYING] Now, we are going to Zoom in on the revenue breakdown chart showed in the previous chapter. And we are going to see what the right formula to calculate the revenue of an e-commerce business on average. Basically, if you multiply conversion rate times frequency times average order value times traffic, that's how you calculate the revenue of an e-commerce business.
Now let's zoom in, and see what is going to happen on an average e-commerce with 1,000 visitors per month. Let's see here. Let's estimate that you have, in this case, 10,000 visits per month, a conversion rate of 2%, average order value of $100, frequency of 1, which means that basically the customer would chase only once from your store.
Your revenue per month is around $20,000. OK. Now let's do this. Let's keep the visits the same. So let's keep 10,000 visits per month. But let's increase each KPIs by 30% So conversion rate will increase to 2.6%. Average order value around the 130. Frequency is likely more so to 1.3. Well, you basically, congratulations, just doubled your revenue.
$44,000 per month. Isn't that beautiful? Basically, by optimizing by 30% each KPI you double your revenue.

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<h1>Build an online store for your business with your new skills.</h1><p>Shopify has everything you need to start selling, all in one place.</p>