eCommerce Revenue Levers Calculator

I’ve generated $337,000,000 for over 243 eCommerce brands.

There are 4 key ways I’ve achieved this and today:

I share with you exactly how they work.

Through a simple calculator I use…

To plan growth and success for each brand.

It visually shows you the relationship between:

AOV
Visitors
Revenue
Conversion rate
Purchase frequency

Not only that but it’s segmented by funnel stage:

Top of funnel
Middle of funnel
Bottom of funnel

Seeing this will allow you to identify:

Areas of opportunity for your brand
Where you need to focus energy
How to plan it forward

Here’s an overview of what’s to come:

The Calculator

Here’s a link to the ecommerce revenue levers calculator:

First, make a copy:

https://docs.google.com/spreadsheets/d/1uey1uEAWLn3Vm8BLHS5-y-dXO9v0rbVoBhYYnVLwKaw/copy

eCommerce Revenue Levers Calculator Overview

Second, get familiar with the calculator.

You’ll notice the calculator is divided into three core sections based on the stage of the funnel you’re looking to buy traffic from:

Bottom
Middle
Top

Being a Google Ads eCommerce agency, for this example we’ll map these respective campaigns across the funnel:

Bottom: Branded Search campaigns
Middle: Non-branded Shopping campaigns
Top: Demand Generation campaigns

The key is to retrospectively update this tool based on actual campaign performance.

For example, every 30 days update the middle section of the funnel with non-branded Shopping campaign data.

Paired with the visibility of campaign data (visitors, conversion rate, AOV) and store data (purchase frequency), you’ll have the ability to see the impact on revenue depending on which lever you decide to pull.

The calculator gives you a visual way to measure the effect one or multiple levers has on revenue.

For example:

Increasing purchase frequency through adding a subscription offering
Increasing AOV by adding a progress bar on the product pages
Increasing visitors with all other variables remaining the same
Increasing visitors with a drop in conversion rate
Increasing product prices and therefore AOV

The idea is whichever way you’re trying to increase revenue, this tool will allow you to forecast the impact the changes would have.

It gives you more structure and direction for planning marketing activity using campaign and store data alongside your hypotheses.

For example:

If we were to adjust our product pricing with an estimated AOV increase of $15 per order, how would it impact revenue and ROI?
If we were to invest $10,000 in product page CRO and improve our conversion rate by 0.5%, what impact would it have on our revenue within 60 days?
If we were to increase our Google Ads budget by $50,000/month, increasing our traffic by approximately 10,000 whilst reducing our conversion rate by roughly 1%, what impact would it have on our revenue within 90 days?

Overall a great tool to really help take your marketing plans to the next level.

Always remember:

All digital marketing components exist within the same ecosystem.

Having a holistic approach is how you’ll elevate your brand.

This tool allows you to appreciate the impact of changes across multiple components (website, Google, Meta etc.) all within one view.

Need Help With Your Google Ads Campaigns?

We’re a team of eCommerce and Google Ads pros who have a proven system for scaling DTC brands.

If you’re wanting to improve your campaigns and make more revenue, reach out, we’d be happy to help.