June 18, 2023

You're losing revenues if you're not A/B testing checkout

Revenue is the #1 topic that comes up in my conversations with eComm brands from every industry. Founders want to know how they can balance increasing profitability with managing rev ops and cutting costs anywhere they can. I tell all of them the same thing: many brands overlook their ability to leverage checkout, shipping and delivery as a revenue growth engine. They’re scared of change, because they don’t realize how easy it can be to implement new technology. When I show them how much money we can make them, a lightbulb goes off. The numbers speak for themselves. 

Transform your shipping process into an immediate revenue-earning machine

If you want your shipping to be profitable, you need data. You need to understand why some customers spend enough to earn free shipping, and why some don’t. Why no one is choosing expedited shipping. Is the pricing too high? Why aren’t local customers returning? Are you providing shipping incentives that really resonate? Why do people on one side of the country love your products, while people on the other side rarely purchase, despite advertising to everyone? Is your carrier mix providing compelling options to every type of customer? Are you meeting customer expectations?

You can’t increase your average order size, shipping profits, and ultimately customer conversion & retention without these details. So if you’re not A/B testing your free shipping thresholds, shipping pricing, and carrier options in checkout, you need to start ASAP. This will give you real-time data on how to better accommodate your customers. The question isn’t how to get more people to your website. It’s how to get the people already on your website to spend more.

Automations will take your business to the next level

No two customers are created equal, which is why running several A/B tests at once is crucial. Once you understand each customer’s unique expectations and how to meet them, you can provide a tailored experience to everyone, ultimately enhancing their relationship with your brand and significantly increasing profits. 

But how can you do this? Customer segmentation is completely automated, all you have to do is set the rules. For example, you can decide that local customers within a certain mile radius of your warehouse are entitled to free shipping, and a free sample after their 3rd order. Or that customers on the West coast will see a rush shipping option that customers on the East coast will not see, to account for the longer route time. Maybe you realize through running A/B tests that your free shipping threshold can actually be making you $10 more per order, as more customers are willing to spend just $10 more when they don’t have to pay for shipping. Or maybe you realize that showing precise ‘arrives by’ dates like Amazon leads to higher conversions. The bottom line is that the ability to continuously test and optimize the customer experience is a valuable tool in your revenue arsenal that will transform your business. 

Preventing shipping errors are just as valuable to revenues as a new sale

Communication is another gateway into improving the customer experience, and in turn your revenues. If there’s one thing we can all learn from Amazon, it’s how to set expectations. Customers care more about getting an item on time than they do about speed. So use checkout as a launch pad to positively catapult a customer’s view of your brand. Start simply by meeting customer expectations with clear arrival dates in line with your fulfillment capacity, and deliver on your promise. Set up your shipping process to get ahead of these mistakes before they cause damage. For example, if a carrier encounters a delay and the order is running late, you can set automations to notify your team immediately to give you time to reach out to the customer and let them know. The mistakes you can prevent are just as valuable to your revenues as a new sale, because you want existing customers to purchase again. 

Lean in to where you perform well. Offer shipping incentives and promotions to repeat customers. Don’t overlook the value of shipping on your sales and marketing efforts, and on customer retention. Leverage this vital piece of the customer journey to take your brand further. Within the checkout-to-delivery process, there are no shortage of moments to test, communicate, build trust, and wow customers. You just need to invest in the right tools. 

Shipping revenues are a high priority for eComm brands in every industry. Understanding what will persuade customers to spend more (and then shifting accordingly) is key to increasing your profits. If you ever feel like you’re struggling to protect your revenues from the damage an underutilized checkout-to-delivery strategy can do, reach out to me at avi@prettydamnquick.com so I can show you all the ways PrettyDamnQuick is increasing revenues for our brands. 

Ready to get sh*p done?

Sign up to make your eCommerce delivery profitable
Latest POSTS