Your online business may be losing money and you may not even realize it. Each year about 5% of businesses lose money to fraud according to the Association of Certified Fraud Examiners (ACFE) but that is not the only way you may be leaving revenue on the table. Here are five ways you may be missing out on some cash.
1. Not Keeping Up with Analytics
Many small business owners get comfortable with how well they are doing and do not realize that they could be doing better. Evaluating analytics for your business frequently can help you to spot areas that could improve your business. Some data every online business owner should evaluate regularly include:
- Number of visitors to your e-commerce site
- The days and times that visitors visit your e-commerce site
- High conversion rate times and low conversion rate times
Data is power in the e-commerce sector. The more you know about visitors’ habits the better you can define the shopping experience and shape your marketing strategy. If you are not reviewing data weekly you are likely missing out on some revenue.
2. Not Building Relationships With Your Current Customers
If you focus too much time on attracting new customers and not enough time on developing a relationship with current customers, you may lose money. Repeat customers and referrals are two key components to any successful business. Building a relationship with your current customers is essential.
Stay in touch via emails and texts with current customers to announce sales they may be interested in. Set up a loyalty program to reward customers for being repeat customers. Make sure you are taking steps to keep your current customers happy, and they will refer new customers to you.
3. Not Making Your Checkout Process Easy and Safe
If your checkout process is difficult, you lose money. Online shoppers are all about convenience and ease. If your checkout process is complicated and requires too many steps, you will find a lot of abandoned carts. If your checkout process is not secure, you are losing money and setting your business up for failure.
According to IBIS, consumers lost about $358 and 21 hours of their time because of online crime. Your checkout process should be simple yet highly secure. Your customers trust you with their data; a data breach because of an unsecured checkout process will cost your business more than money.
4. Not Updating Your Website
If you have not updated your website in the last three years, you may be losing money. Consumers expect your website to be fast, engaging, and easy to use. Many consumers use their mobile devices to shop and search for services. If your website does not have a responsive design to deliver the same experience across all devices, you are losing out on a big part of the market.
According to Consumer Reports, the electronic industry alone was worth $301 billion in 2019. How much money are you missing out on by not updating your website?
5. Not Investing in the Services You Need
Many small online business owners are hesitant to take the next step to grow their business. For example, you may greatly limit your online business by not partnering with a distribution warehouse if you run out of storage space. Other services you may not have enlisted include professional marketing support or hiring customer care providers.
By not stepping out of your comfort and investing in the services that could expand your online business, you are stymieing your growth and potentially leaving a lot of money out of the equation.
Any online business owner should not accept losing money as part of doing business. Learn more ways you can increase and stop losing money.