What is the next bottleneck that I should attack?

What is the next bottleneck that I should attack?

Focusing on overall business performance is generally a productive path. Since DigMyData is about optimizing your business, this is where DigMyData can help you best.












To know what your next bottleneck is:

1. Set up your Traffic line in Settings

2. Set up your Orders line in Settings

3. Set up your Ad Cost line in Settings

4. Add a calculation line called Total Revenue








On the example above, during the second month of business (May), the margins at the beginning were not very good. Together with the paid traffic, this was actually causing the business to lose money.









Looking at the chart above, it is very obvious that the traffic was too expensive. Something needs to be done with traffic. Turning off AdWords Ad Cost can be a possible solution.









After turning off AdWords Ad Cost, notice that the Traffic line started to slowly ease up and Revenue is picking up as well. This solution fixed the expensive traffic problem.

The next step to work on is the Conversion Rate. In the example below, the numbers were not very good at the onset when AdWords Ad Cost was still active.









For example, during August, Conversion Rate went as high as 5%. This means that 5% of every visitor bought a product from the website. Everyone who deals in e-commerce would love to have a conversion rate like that. In general, most people consider a 2% or 3% Conversion Rate pretty good for an e-commerce business.

There might be times that your traffic fluctuates and the Conversion Rate would be bouncy as well. You can check on the instances where you are stuck at less than 1%. You can then add some story points there and keep trying different things to see if you can get that Conversion Rate to go higher.









Making your Conversion Rate better can positively impact your business. At the very least, you should aim to be at par with the industry standard level so you can make some profit. You can have your business go through some diagnostic process by looking at the lines in this example. You will see that the biggest problem is the Conversion Rate.









You can try to increase the Conversion Rate by working on the following:

· Know the cost data for what these products cost you

· See what your profit margin looks like

· Take a hard look at traffic and see how you can improve it


DigMyData can let you focus on those important variables that make up your business and make managing them a bit easier.