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Monday, 10 December 2018

How to Calculate the Real Cost of Your Online Sales Problems?

Reading time: 2min

How to Calculate the Real Cost of Your Online Sales Problems?



If you stop accepting excuses, every exiting online visitor who did not complete the purchase process is your sales problem. There is always a good reason why that visitor did not buy from you and that is why you bleed sales.

You can, of course, hide behind excuses, that is very common in sales.”

For example, if you want to know which weekday is not good for selling, you only need to ask a few salespeople to realize that every single day is a bad day for selling.

There is always a good excuse why not to sell.”

Or you can stop accepting excuses and just decide and make sure that every day is a great day for selling.


HOW TO CALCULATE THE REAL COST OF ONLINE SALES PROBLEM?

This is very easy:
  1. What was the value of lost sales for a visitor who exited your online store or company website without completing the purchase process?
  2. How many visitors to your online store or company website suffer from that same sales problem every day?


A few examples:

1) A single sales problem causes a loss of $50

1.1) If only 3 visitors per day have this same sales problem,

$50 times 3 visitors/day times 365 days/year
= lost sales $54,750 annually and $164,250 in three years


1.2) If only 15 visitors per day have this same sales problem,

$50 times 15 visitors/day times 365 days/year
= lost sales $273,750 annually and $821,250 in three years


1.3) If only 30 visitors per day have this same sales problem,

$50 times 30 visitors/day times 365 days/year
= lost sales $547,500 annually and $1,642,500 in three years



2) A single sales problem causes a loss of $250

2.1) If only 3 visitors per day have this same sales problem,

$250 times 3 visitors/day times 365 days/year
= lost sales $273,750 annually and $821,250 in three years


2.2) If only 15 visitors per day have this same sales problem,

$250 times 15 visitors/day times 365 days/year
= lost sales $1,368,750 annually and $4,106,250 in three years


2.3) If only 30 visitors per day have this same sales problem,

$250 times 30 visitors/day times 365 days/year
= lost sales $2,737,500 annually and $8,212,500 in three years



3) A single sales problem causes a loss of $500

3.1) If only 3 visitors per day have this same sales problem,

$500 times 3 visitors/day times 365 days/year
= lost sales $547,500 annually and $1,642,500 in three years


3.2) If only 15 visitors per day have this same sales problem,

$500 times 15 visitors/day times 365 days/year
= lost sales $2,737,500 annually and $8,212,500 in three years


3.3) If only 30 visitors per day have this same sales problem,

$500 times 30 visitors/day times 365 days/year
= lost sales $5,475,000 annually and $16,425,000 in three years



So, that is how you calculate how much a single online sales problem really costs you.”


Very easy to check; just count the number of lost sales from your log files by using the sales problem details we will provide you. Be ready to get mad or desperate when you look back one, two, three years.

All online stores and company websites have many problems, and if you keep on believing the excuses why you cannot have higher sales conversion, just forget about this article right now. The content I will later publish on this matter might be too disturbing for you.