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Understand the 80/20 Principle and 2x Your Revenue By the End of the Month

Understand the 80/20-Principle-Revenue

Most e-commerce owners don’t realize that approximately 80% of their revenue comes from 20% of their customers. Therefore, instead of concentrating on all of the clients, most owners should start taking more care of their top customers. However, how is it possible to identify these top customers?

The best way to do this is to answer these simple questions:

What are my best customers’ behaviors?

1. What pages do they visit?

2. How often do they buy?

3. What items do they buy?

4. What is their average order size?

5. What time of day do they shop and on which days?

What are the characteristics of my best customers?

1. What sources were they acquired from? Was it an ad, a promotional email customer base or some other place?

2. What devices do they use?

3. What is their demographic background, including age, income and more?

4. Where do they live?

5. What other products do they use?

What events cause users to abandon the cart?

1. What screens have the highest exit rates?

2. How are the products priced relative to other services?

3. What actions don’t they take that user who purchases do?

4. What is their path through the website, and how much time do they spend on the website before they abandon it?

By using this data, you can now start advertising on Facebook more precisely, segmenting your audience by the time they’ve spent on your store, by the amount of money they spent, by the frequency they buy. All of these functions are easily available on Facebook and are fundamental to the success of your store. Take the time to understand the 80/20 principle so that you will be on your way to scaling your campaigns AND your revenue. 

Want more tips on successfully running ads for your business? Click here.

 

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