Let’s talk about my favorite topic- analyzing numbers! Even if you don’t like numbers, I think I’m going to change your mind in this episode.
In this episode of Empowered Business, I’m diving into why the numbers are such an important tool and 4 levers that you can pull for explosive results in your digital product shop. You’ll learn what these levers are and how they can significantly impact the amount of money you make in your shop.
I regularly use these levers in my shop and it has helped me stay on top of what’s working and what isn’t, and increase my income whenever needed. It all starts with looking at what the numbers are telling me.
If your sales aren’t what you want or need them to be, there’s always something you can do. You can boost your shop just like I am by utilizing the power of data and taking action by doing the things I share in this episode.
As you can see, I really love numbers and the stories that numbers tell us. I think it’s one of my superpowers to be able to break down an overwhelming amount of data and make it digestible and more important, usable.
If you want to work with me on your digital product shop, I would love for you to join me the week of March 20th inside of Digital Shop Accelerator™. This free, week-long event is a combination of short and impactful audio drops and interactive live training with me. You can sign up here!
Head over to http://monicafroese.com/listen to listen to this episode and previous episodes on your favorite podcast platform!
You are listening to. The Empowered Business. Podcast. I’m your host, Monica Froese, and. If you’re like. Me, you want. To grow a. Business you love that gives you financial freedom and. Fits your. Lifestyle. Every week you’ll get strategy and. Unfiltered opinions from me and other successful business owners that will inspire you. To make big moves in your business. When we work together, we not only grow faster, we. Also amplify each other’s voices. Are you ready to build. Your business on your terms? Let’s jump in. Hello. Hello. I am excited to be. Back for the third episode in our four part. Series. All about creating a profitable digital product shop. Today we’re going. To be talking about one of my favorite topics because it involves analyzing numbers, which I know. You may have just groaned and you’re. Thinking, That sounds absolutely. Terrible. Monica. But I promise. Even if. You don’t like numbers. I think I’m going to change your mind. I have a saying that I use with my clients all the time, and it goes something like this. Numbers are not. Emotional. They simply tell a story. What matters. Is what you choose to do. With the story that they are telling. You. I have found that the people. I work with tend to get pretty upset when the numbers aren’t showing in their favor, or they decide to completely ignore the numbers and act like they can make strategic. Changes without looking at them. And the truth is. If. The numbers are not. Reflecting what you had hoped, you actually don’t have to get upset. Because there is a story being told to you. The numbers are. Basically looking back at you in the mirror saying, Hey, look at me, something isn’t. Working. What is it? And then once. You figure out. What it is, go and fix it. Not convinced yet. That’s okay. You’ll get there. So let’s get to the point of this episode. The four levers. That you can. Pull to create explosive results in your digital product shop.
So let me cover what these four. Levers that you can pull. Are, and then we’re going to break. Them down and discuss how each of them can impact significantly the amount of money that you. Make in your digital product shop. The first one is people. How many people actually come to your shop? The second. Is orders. How many orders are. Placed inside of. Your shop? The third is average order value or aof. For short, this is the dollar amount of. What each order in your shop is worth. And the fourth lever you. Have is products. What products are. People actually buying? So you have people. The orders, they. Place, the money they spend. And products. So kind of sounds deceptively easy, doesn’t it? I mean. People orders money. Products. Okay, that makes sense. But you know. What the real key is here? Understanding what the numbers are telling you. So you know which. Lever. Is the. Best one for you to pull. At any given time. And how do you do that? Well, I’m going to tell you. Here are the must track numbers you need to be tracking for your digital product shop so you can determine which of these four. Levers is best for you to focus on. Right now. So the first number that. You need to have a pulse on is. The number of. People who come to your shop. The second. Number you’re going to track is the number of orders that are placed. With. This. You’re also going to track the conversion rate for your overall shop. Which Shopify Analytics tells you all of this. They’ll tell you how many people came to your shop. It will tell you how many orders were placed and it will tell you. The conversion rate. So the number of people who convert it. Into an actual. Order. The next thing you’re going to track. Is. What your average order. Value is. So that is easily tracked in Shopify as well. Average order.
Value is the sum of all. Of the orders that were. Placed divided by. The number of orders that gives you your average order. Value. That tells you basically. What a person coming into your shop is. Worth on average. The other thing. You’re going to want to track. Is how. Well your marketing. Enhancements. Are working order pumps. Upsells. Upgrades, bundles. In the last episode, I talked about how we use an app called Honeycomb to have order bumps, upgrades, upsells, and then we. Use frequently bought together. To have bundles. If you are using those marketing levers in your business, those are numbers that you’re going to want to track because those numbers will help inform what lever you should be. Pulling to make more money. And finally, you will want to. Know which. Products sell the most by volume and profit, because. Of course. You want to. Sell more of what works. I use an app called. Data Export, which I’ll. Link to in the show notes to pull. A report called Sales by Product. It’s one of the reports. I live and. Breathe. By, and so I highly suggest using that app. It’s only $10 a month. So now once you have these numbers, you need to address the options you have in terms of making changes. In your shop for each of these levers. So remember, we have four levers that. We can pull. So if we decide. To pull the first lever. Which is people, what does that mean? That means you need. More people. To. Get to your. Shop. How do you do that? Well, you can send more emails to your email list, so you could focus on growing your email list with additional new leads. Or you could work on. Sending. More offers, more specific. Flash sales and things like that to your email list. To get more people to click over. You can focus on building. Out your. Shop SEO, which is search engine optimization. How do you get found. On search engines better?
And one. Of my favorite way to get more. People into our shop is by. Using our. Affiliate network. That’s when you have a network of people who recommend. Your shop products to their. Audience and they get a commission for it. I talked in the last episode about how we use. Go F Pro. Which is a Shopify app to execute on that. So that’s the people lever. If you determine based. On the numbers that you simply need more. People. Into your shop to hit your goals, you need to figure out we’re going to go get those people from. Now the second lever is orders. So let’s say you decide that the issue is actually that. You’re getting the. People to your site. But the problem is, is that they’re not converting. So you have a lower conversion rate. So they’re coming, but they’re not buying. What do you have to do? Well, in that case, you. Would want to work on updating your. Product listing because something is preventing them from taking action. So are the descriptions accurate? Are they compelling? Is the call to. Action very clear? Are you giving enough information? Are you giving too much information and images? Images matter a lot. So if you determine that the issue is the conversion. Rate and you need more orders, so you’re. Getting enough people but not. Enough orders, then you need to work on making your product. Listings better. The third lever. Is. Money, right? So dollar amount. If you determine that. The lever that you should. Be pulling is to actually make. Each order worth. More. In other words, you want to work on increasing your average order value. Then you have to work on all of those marketing enhancements that you’ve built. Into your shop. Like. Better order bumps, better. Upsells, offering upgrades. Bundling products together. And then that fourth. Lover. Is products. So this is where if you determine that, hey, everything’s going great, we’re getting a lot of people. To our shop.
They are converting, so we’re getting enough orders and our average order value. We’ve worked on super hard. Let’s say, and at this point you don’t feel like you can do much to move the needle. For your average order. Value, then. Sell more of what. Works. Maybe when you. Look at your sales by product report from data export, you determine. That, Hey my audience. This is a great example. My audience loves spreadsheets. Every time I launch a new spreadsheet, I get a huge uptick in sales. So maybe you could. Create another spreadsheet. That month to. Increase your sales. So those are the four levers we’re working with. Now is the time. Where I take these numbers. And plug them into a shop. Calculator that I’ve created to figure out what number will. Get me the fastest to my goal. Sounds pretty cool, right? So you’re going to. Really see how this comes together. Now I’m going to. Walk you through a. Real example of how I do this. There’s two separate. Lines of math that I do. The first one is the number. Of people who come to my shop times. The conversion rate. These are numbers that you pull from Shopify. So number of people who came to your shop, what they converted at equals the number of orders. That’s the equation. But all. Of those numbers are actually. Given to you by Shopify. But I use a calculator in a spreadsheet so I can play with. These numbers and determine what the. Best lever is. So once I have my. Number of orders. Then I take my. Average order. Value and I timed that by that. Number of orders that. I’ve just figured out, and that’s going to equal my total. Revenue. So if you’re. Lost, I’m going to break this down for you and actually pull up my spreadsheet and walk you through these numbers. So the first thing I’m going to do. These are actual numbers from. One month in my shop. So in this scenario.
I had 8900 people come to my shop. That’s what Shopify told me. Shopify told me that those 8900. People convert it. At 6.12%. So in my fancy calculator, I plug in 8900 times. 6.12%. And it tells me that I got 545 orders. I compared that that is accurate math. That’s exactly what. Shopify reported. Back to me. Now I am going to. Take my average order value. So this I did this in a month container for that month. What was my average order value again, that’s given to you in Shopify Analytics And in this case my. Average order value was. $39. So I timed that by. The number of orders that. I got, which was 545, and I made $21,255. That. Month. So the question I now pose to myself, this is how we use these levers in real time. The question I’m posing to myself is what is the thing that I should work on next month to hit the next revenue goal that I want to get to? So let’s just say that my revenue goal I made 21,255. Let’s say that I’m saying I would like to get to 26,000 the next month. What’s the quickest way for me to get to 26,000 based on these facts? So if I do. Everything. The same, if I keep my same type of. Marketing. I. Treat my store. The same. I’m pretty sure I’m going to end up right around. Where I ended up this month. But I want. To grow next. Month. So what do we do? Well, the very first thing I’m going. To do is I’m going to play with the numbers. And the first number that I like. To play with is. The number of. People I personally find. Getting more people. Depending on the levers that you have to pull in your individual business. I find in my business, it’s one of the easiest things for me to do, mainly because I have a pretty strong affiliate. Network and so I can reach out. To a few affiliates of mine and have them promote me on special campaigns to.
Their. Audience. And that essentially will. Bring more. People to my shop that month. And I also have other avenues like this podcast. If I put more, if I decide to do like a. Limited time series like. This, I’m likely going to get. More people. To visit my shop. Or I could. There’s a. Lot of I. Find personally. Again, that it can be a. Lot easier to get more people, but. Let’s just do the math. Let’s see what the math tells us. So in this scenario, I had 8900 people and I want to say, okay, I think I can get 11,000 people this month. Now let’s just say I get 11,000 people. I’m plugging this into my spreadsheet and I’m not going to change anything about the product listings. I’m not going to try to work on the conversion rate. I’m just going to leave the conversion rate. The same, which is. 6.12%. Well, the math tells me because. The spreadsheet. Calculates it for me, people times conversion. Rate. Equals. 673 orders. So now I’m going to plug in on the next line, 673. Orders and. I’m going to leave. My average order. Value the same. Which was $39. So $39 average order. Value times 673. Orders. Equals. 26,247 oh OC. More people can definitely get me to that goal. But you know, let’s do my due diligence here and let’s go and put 8904 people back into that column and let’s just say, Hey, maybe if I work on enhancing the product listings of the products I’m going to send them to, Maybe I can. Get my conversion rate up to 7%. Well, that would mean I got 623 orders. And so when I go to 623 times 39, $24,287. So I’m thinking. You know, increasing your conversion rate is. Honestly, in my opinion, a lot. Harder of. A thing to do than. Getting more people. Now, I think everything here works. Hand in hand and at different points. You should have focuses on different levers. But I’m looking for the most immediate one that I can impact right now based on numbers to get to my goal.
So the very last thing then we have. To figure. Out is. Right now I’m leaning towards. People, but let’s go in with. 8900 people, go back to the original conversion rate of. 6.12%, which puts us back to 545 orders. And I’m going to say, well, what if I can increase. My average order value to $45? I mean, I could come up with. A better. Upsell. I could raise the price of one of my products. Like there’s a lot of things you can do to try to encourage people to. Place more in their cart. In essence, increasing. Your average order value. When I plugged that in a bump of $6, so $45 times 545, it brings me to 24,525 people. So what I’m telling you is, based on this math, the math I’m working for me, it would make most. Sense for me to. Focus on trying. To get more. People to my shop next month and. Not worry as. Much about. The conversion rate or keeping what they’re spending. The same. That would get me to my $26,000 goal easier. So now that I’ve determined that the main. Lever that I’m going to work on. For my next month, what do I do now? Well, now it’s time to build. The marketing calendar for the next. Month. This is where I’m going to determine exactly what sales. I’m going to run to my email list, what affiliates I’m going to engage, and what enhancements I need to make to my. Shop for success. So the very first. Thing I do, which I just did already, was I plug my. Numbers into our lever. Calculator, did that. Then I choose what. Lever to work. On. I’ve determined that people is the number one thing I should be. Working on. Right now. The next thing I’m going to ask myself is what sold well last month? And I use that sales. Buy product report that. I pulled from. Data export. To determine that because I want. If something performed really well. You obviously want to leverage what’s working well.
So then I ask myself what sells well that I have not sold in a while. So I leverage that same sales buy product report, but I. Pull it going back 12 months because what I want to look at is what. Works really. Well that I. Haven’t promoted. In a while. The next thing I do is can I create a new product based on what I. See is already. Performing well? So I’d mentioned that about spreadsheets. So if I’m trying to. Hit a bigger goal. Any time you can get something. New in front. Of people now, it’s always feasible. To create something new every. Month. And I don’t even recommend that. But that is a question. You should be asking yourself. If you’re seeing a trend in your shop, you’re seeing a certain type of product. That is getting a lot of momentum. You should. Consider what other product opportunities. Are around that. Now, the next thing I ask myself is how did the landing pages convert? So I want. To make sure that if I am proactively promoting a. Product that I’ve done my due diligence to. Make sure the product. Listing is as good as possible. So even though I know going into the next month that I’ve determined that my number one objective is to get more people to my shop. And I know that the way I’m going to do that is I’m. Going to leverage my affiliate network. The following month. I still. Want to make sure. That the products I’m sending. People to are converting. Well. So there is a report which I’m actually going to pull up here and give you real numbers. There is a report you can get. From Shopify and it’s called Sales by Landing Page. I love this report. So let’s just use this as an example. Let’s say that I am looking at my sales. Buy product report. And I notice, Hey, the Empowered Business Box, that’s a collection of six of our best tool boxes that has made us a lot of money. And I have not promoted it in a while.
So, you know, that. Is a really great product. To put in front of my affiliates to meet. My number one lever. Right, to get more people to my shop. But when I pull. Up this report, I. See that the. Overall. Page, so the product listing itself. Converts. It 5.69%. So what does that mean? The people who land out of the people who land on that product listing only 5.6, 9% of them go on. To place an order. But as I’m looking at. Other products on this report, I see that some of my products are converting upwards of 15%. So that tells me if I’m going to be sending. More. People to my shop, I want to give them the best. Opportunity to convert at the highest rate. Possible. Why not? So at that point, I would pull up the. Empowered business. Box listing and I would look at it objectively. I would ask myself, Is it clear? Is the transformation clear? Is there information that’s missing? Do I have too much information? There Are. The product images. Clear and crisp. Are they engaging? Do I have testimonials on this listing? And the other thing I would do is I use a. Software called Hotjar. It’s a user behavior software. It’s installed on my shop, and you can actually watch videos of people who are using specific pages on your shop. So I would actually watch people. Who are on the empowered business. Box listing and I would try to get a feel. For what was. Confusing them and make that listing better. So the next thing I do after that is I look at how the emails that I’ve already sent for that. Product convert it. So I’m a big. Believer. In. Work smarter, not harder, and we certainly repurpose a lot of our emails. However, if the emails. We’ve already sent on this product didn’t have a great conversion. Rate, I’m not. Going to repurpose. Emails that didn’t do well. So I’m always going to be looking at how well.
Did the previous emails convert. What can I take. And repurpose. And what can I. Improve on? Then I also look at how my different. Marketing triggers worked, such. As honeycomb. So that. Is order. Bumps, upgrades and upsells. I want to see let’s take the. Empowered business box for example. I am going to go see if. The order. Bump and the upsell that I have attached to that. Convert. It. Because if it didn’t, that tells me I picked the wrong product for the order bomb or the wrong product from the upsell, and I’m going to change that out. Before I run. Another flash sale to. It or before I drive more affiliates. To it. I also look. At how the Frequently bought together app performs. That’s the app that is product bundles at the bottom of my product listing. So essentially tells people, Hey. If you’re going to buy. This, you might be interested in buying these two things too. And if you click. Add to Cart, it adds all three of them to the cart. And then once I have determined all of this and I have systematically. Worked my way through the different levers that I. Have to pull in my business and I have developed my marketing campaign, I do two things. One, we keep our email. Marketing calendar via. Google, so we have. A separate calendar. That our whole team can see, and it’s called our promo calendar, and it. Gives us a really nice. Holistic view of what’s going on that month, what emails need to be sent. The other thing we do I would. Do from there. Is I would take what I’ve decided to execute that month and I would put it in Asana. So we use Asana. That’s our project management system and I use a. Card and I break it down. By week and I essentially call out on every single day exactly what emails are going to be sent. And if we’re running affiliate promotions. I mark that down. So we have this holistic view of what is going on in our business in terms of marketing.
So as you can see. I really love numbers and the stories that numbers. Tell us. I think it’s one. Of my superpowers to be able to break. Down. An overwhelming. Amount of data and make it digestible and more important, usable. So if you. Want to work with me on your digital product shop. I would. Love for you to join. Me. The week of March. 20th Inside of the Digital Shop. Accelerator. Simplify your sales for more profit. This is. A free. Week long event and it’s a combination of a short and impactful audio drops and an interactive live training with me. You can sign up at digital shop Experience. Forward slash. Training, and this link will also be in the show notes. Of course, Easy Access. Now, during this weeklong. Free event, we’re going to. Be diving into things like how to make the mindset shift from free to paid. Or content creator to ecommerce shop owner who. Provides value through selling. So we’re going to talk a lot about how selling is actually serving. Then we’re going to talk about the real power of. Having a centralized call to action in your business. That would be your shop. And the transformation that you will see when you make this shift in your own business. I’ll show you how one. Low price product can turn into. A multi. $100 sale. That’s right. $9 turn into $100. I think anyone would take that any day of the week. And then we’ll do a live interactive demonstration on how you. Can leverage all of your hard work over the years. At scale using a digital shop model. So if you’re in head on over to digital shop experience for training and sign up. Tune in again. Next week for a very special. Episode with a client of mine who use my shop strategies to. Start and grow her own digital product shop. It’s really going to. Be a good one. And I think you’re. Going to enjoy it. So I’ll see you back here next week.
Thanks for tuning in to another episode. Of The Empowered Business Podcast. I just. Launched a brand new subscribers only. Podcast called Monica Soapbox. It’s a nice supplement to. What I share with you each week here. Monica Soapbox is more laid back where. You’ll get unscripted behind the scenes updates on my business and. The industry. Head on over to empowered business. That. Co forward slash. Soapbox to sign up. See you here again next week.