Thursday, April 30, 2009

How I set goals for my online store

Here is how I set goals for my online store. It is my own method that I worked out during my stance as an Insurance Advisor.. I was doing road shows back then and numbers are really important to me. The more people I speak to, the more chances for closing a sale. It is what they call, a numbers game. To use this method, you would need the studio stats to track your progress.
How my system works...
First decide the number of sales that you want.
My goal this year is to have 1000 sales transactions.
A big number for me that I seeked to motivate me and a big enough number for me to dream.
It sounds impossible, but yet maybe reachable as a clear, measurable figure is stated.
I am not looking at dollar sales, as it gives me too much stress.
How I count is, 1 item sold is 1 sale. 1 admin job for 1 month is 1 sale.
I count these only when I collect payment.
Pending payment cases do not count.

Step 2: The golden rule says 3%. Going by the 3% rule;
Goal / 3 x 100 = Number of views needed
1000 / 3 x 100 = 33,333 views needed
This is the number of views that I need for my product listings to get 1000 sales.
I am selling my products, not my shop.
Plus, some visitors come and go without checking out products.
Remember to use Total Item Views.
Step 3: The golden rule still says 3%. Going by the 3% rule;
Number of views needed / 3 x 100 = Number of impressions needed
33333 / 3 x 100 = 1,111,100 impressions needed
This is the number of times that my shop url needs to be seen to get 33,333 views.
Working backwards to explain the above calculations.
1,111,100 people will need to see my url, before 3% of them actually visits.
3% means 33,333 viewings of my products.
I will need 33,333 views on my products, before 3% of them actually buys.
3% means 1000 sales for my store.
All these figures matter as these are the goals that I work towards everyday. Its not just the 1000sales. Its the views also!
This system works well for me as it distract me from the pressure of sales target.
Instead I focus on marketing my store, trying to increase visits to my store, increase the number of views each item gets, which in turn helps to bring in sales.
I hope this simple method will help you to focus on marketing your store,
instead of focusing on sales. Do you have your own method? Share it!!
All the best..


ALN Designs said...

So helpful!! Thank you. I'm so frustrated about not enough sales. This puts it all in perspective.

Creations With Heart said...

Wow. Now that's a lot of numbers! Thank you for sharing your method!