Improving your bottomline can be a complex process the higher level you are looking at it from.
We want to increase our revenue by 2x this year — wow where do you even start?!
We want to increase our revenue by 2x this year, by improving our conversion rate from 1.3% to 2.6% — better but still, where do you even start?!
We need to get 1.5x more product page views, and get 1.1x more add to carts with 1.3x more checkouts to 2x our revenue this year — here we go, now we can have a clear path forward.
But first to be clear, how is that better?
- Getting more revenue on it’s own can depend on so many factors, it leaves a lot of room for error by going after the wrong things
- Targeting a specific conversion rate improvement is better, but still not clear on where the improvements will be needed
- Having specific KPIs with targets is best because then we can start implementing strategies around it and we know what to test for
Basically, you want to minimise wasted time and effort on the wrong things and focus efforts on the levers that will give you most bang for your buck.
And how do you that?
The eCommerce goal map tree helps breakdown your goal into smaller KPIs, making it easier to know what to improve and by how much.
What’s going on here is we have a goal on top of the tree, and then it branches out into the metrics that we can use to achieve that goal.
For example, conversion rate would depend on:
- Add to carts
- Cart to checkout rate
We can go on level deeper here and say that add to carts depend on:
- Product page views
- Product page bounce/exit rate
When you do this what you want to do is start with the top level goal in mind, example: revenue.
And then work your way down the metrics, which could be the same for most eCommerce businesses but you can change it depending on your specific use case.
Once you have all the metrics (without numbers yet), I recommend you start with your current numbers.
And then you can create a new map with the targeted numbers, starting form top (revenue) and fill in the blanks for the lower levels using a calculator to make sense of it.
Now go ahead and create your goal map trees, it helps you visualise your goals and makes it more achievable — go get them!