{"id":410,"date":"2025-06-17T07:41:32","date_gmt":"2025-06-17T07:41:32","guid":{"rendered":"https:\/\/asteroi.co\/en\/?p=410"},"modified":"2025-06-19T16:07:16","modified_gmt":"2025-06-19T16:07:16","slug":"https-jcgiusto-com-the-formula-you-need-to-unlock-your-ecom-growth","status":"publish","type":"post","link":"https:\/\/asteroi.co\/en\/https-jcgiusto-com-the-formula-you-need-to-unlock-your-ecom-growth\/","title":{"rendered":"The Formula You Need to Unlock Your eCom Growth"},"content":{"rendered":"\n
I have studied hundreds of the best eCommerce businesses.<\/p>\n\n\n\n
Worked with dozens that generate millions in revenue every year.<\/p>\n\n\n\n
And this is the formula I found to scale them<\/strong>, fast and profitably.\u2063<\/p>\n\n\n\n<\/figure>\n\n\n\n
As growth specialists, founders, and CEOs, we can improve each of these variables.<\/p>\n\n\n\n
Not just by brute force – like increasing traffic by doubling spend on Facebook.<\/p>\n\n\n\n
But also by experimenting our way to success.<\/p>\n\n\n\n
Because, after running hundreds of experiments, I’ve realized no strategy fits all.<\/p>\n\n\n\n
What increases AOV in one eCommerce, can decrease it in another.<\/p>\n\n\n\n
And a tactic that improves conversion rate in one, can destroy it in another.<\/p>\n\n\n\n
That’s why experimentation is key<\/strong>.<\/p>\n\n\n\n
So we can be certain the changes we implement have a positive impact.<\/p>\n\n\n\n
Let’s explore the levers we can move through experimentation in each component.<\/p>\n\n\n\n
Traffic<\/h2>\n\n\n\n<\/figure>\n\n\n\n
Part of the success of any eCommerce depends on the number of visitors it receives.<\/p>\n\n\n\n
Some say traffic is a vanity metric<\/strong>.<\/p>\n\n\n\n
In some way, I agree.<\/p>\n\n\n\n
But I also believe that, without traffic, your business is dead<\/strong>.<\/p>\n\n\n\n
So why not keep an eye on it without letting this metric guide your strategy?<\/p>\n\n\n\n
Apart from that, you are paying for half of it, so it’s something you should consider.<\/p>\n\n\n\n
There are three factors to take into account<\/strong>:<\/p>\n\n\n\n\n
CPM: It measures the cost per thousand impressions.<\/li>\n\n\n\n
CTR: It measures the click-through rate of your ad. Multiplied by CPM, you’ll have CPC, or Cost per Click.<\/li>\n\n\n\n
Incrementality: It measures the true impact of your marketing, regardless of what the ad platform reports.<\/li>\n<\/ol>\n\n\n\n
The biggest lever in traffic is your creative. An outstanding video, image, or ad copy can reduce CPMs and increase CTRs, resulting in lower CPC.<\/p>\n\n\n\n
Key questions to consider:<\/p>\n\n\n\n
\n
Do you know which audience resonates the most with your product?<\/li>\n\n\n\n
Which sales angle produces the most results?<\/li>\n\n\n\n
What has a better cost-to-result ratio, images or videos?<\/li>\n<\/ul>\n\n\n\n
These are all questions you should consider, dig into your data, and experiment around.<\/p>\n\n\n\n
Conversion Rate<\/h2>\n\n\n\n<\/figure>\n\n\n\n
Huge amounts of traffic are of no use if they don’t end up buying<\/strong>.<\/p>\n\n\n\n
That’s why conversion rate is a crucial metric in our eCommerce Growth Formula.<\/p>\n\n\n\n
Calculating it is easy: divide Total Buyers by Total Users.<\/p>\n\n\n\n
But be careful, don’t make the mistake of comparing yours with benchmarks you see on the web.<\/p>\n\n\n\n
Each industry and business is different, and conversion rates vary a lot between them.<\/p>\n\n\n\n
Improving this metric can be a complex process with dozens of research methods.<\/p>\n\n\n\n
If you need help with it, I can give you a hand.<\/p>\n\n\n\n
Nevertheless, here are some key factors I detected if you want to work on your conversion rate:<\/p>\n\n\n\n
Funnel Conversion Rate<\/h3>\n\n\n\n
Start tracking the performance of the funnel’s steps, from Session Started to Purchase.<\/p>\n\n\n\n
You need to identify at which stages most users drop off <\/strong>and identify why it’s happening.<\/p>\n\n\n\n
There might be issues in checkout, or lack of motivation on the product page.<\/p>\n\n\n\n
Link Between Ad and Landing<\/h3>\n\n\n\n
Inconsistencies between the ad and the landing page kill your conversion rate.<\/p>\n\n\n\n
Make sure that whatever a person sees in the ad – words, images, colors, angles – are replicated on the landing page.<\/p>\n\n\n\n
In this way, the person is assured they are in the right place and can continue their journey to purchase.<\/p>\n\n\n\n
Segment Analysis<\/h3>\n\n\n\n
Run reports to detect which segments are converting poorly compared to other segments. Perhaps mobile is doing worse than desktop, so there’s an opportunity to improve.<\/p>\n\n\n\n
Or maybe your Canada customers have a worse conversion rate than the US ones.<\/p>\n\n\n\n
Your job is to identify which are underperforming, detect why, and work to improve it.<\/p>\n\n\n\n
AOV<\/h2>\n\n\n\n<\/figure>\n\n\n\n
AOV – Average Order Value – indicates how much, on average, a customer spends each time they place an order in your store<\/strong>.<\/p>\n\n\n\n
Even though most Conversion Rate Optimizers ignore this metric, it’s extremely important.<\/p>\n\n\n\n
All things being equal, a 10% increase in AOV has the same effect as the same increase in Conversion Rate.<\/p>\n\n\n\n
And sometimes, it’s way easier to improve the former with an upsell & cross-sell strategy.<\/p>\n\n\n\n
Improving AOV enables you to bid more for your customers and increase your ad spend.<\/p>\n\n\n\n
At the end of the day, the business who can pay more for the customer wins<\/strong>.<\/p>\n\n\n\n
These are some of the strategies you can experiment around:<\/p>\n\n\n\n
In SaaS, aiming for a 3:1 LTV to CAC ratio is common practice, but this same concept would bankrupt lots of eCommerce businesses.<\/p>\n\n\n\n
But forgetting about LTV altogether is also a mistake.<\/p>\n\n\n\n
We can unlock huge growth by taking this factor into our strategy.<\/p>\n\n\n\n
That’s why 60-Day LTV is the sweet spot between both views<\/strong>.<\/p>\n\n\n\n
This metric reflects how much, on average, a customer spends in the first 60 days post-purchase.<\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
\n
We acquire a cohort of users in August 2024 and their AOV is $50<\/li>\n\n\n\n
By October their average LTV is $75<\/li>\n\n\n\n
Then our 60-Day LTV Multiplier is 50%<\/li>\n<\/ul>\n\n\n\n
Depending on your business, you might also want to track 90-Day, 120-Day, 1-Year, and 2-Year LTV, but 60-Day is a good start.<\/p>\n\n\n\n
It’s also the easiest to measure and improve since users are more receptive to changes. Here are some elements you can play with:<\/p>\n\n\n\n
\n
Offering subscriptions<\/li>\n\n\n\n
Optimizing your Post-Purchase flows<\/li>\n\n\n\n
Creating new flows after 30 to 45 days<\/li>\n\n\n\n
Introducing new ways of communicating like Apps, SMS, etc.<\/li>\n\n\n\n
Developing membership or affiliate programs<\/li>\n<\/ul>\n\n\n\n
Some businesses will have a naturally higher LTV Multiplier than others<\/strong>.<\/p>\n\n\n\n
Think brands selling coffee vs jewelry.<\/p>\n\n\n\n
But that doesn’t mean we shouldn’t put the effort to improve it.<\/p>\n\n\n\n
I’ve seen huge uplifts in different industries, so let’s get the experiments rolling.<\/p>\n\n\n\n
Variable Costs<\/h2>\n\n\n\n
This component includes every cost that increases proportionally to your sales:<\/p>\n\n\n\n
\n
Cost of Goods Sold<\/li>\n\n\n\n
Payment processing fees<\/li>\n\n\n\n
Shipping<\/li>\n\n\n\n
Returns<\/li>\n<\/ul>\n\n\n\n
As Growth and Experimentation specialists, we tend to think about how we can increase our revenue.<\/p>\n\n\n\n
But we are forgetting the other side of the equation – reducing costs.<\/strong><\/p>\n\n\n\n
A 2% decrease in variable costs has the same effect as a 2% increase in ARPU.<\/p>\n\n\n\n
And even though it seems there’s no room for experimentation, it is a huge and often overlooked lever.<\/p>\n\n\n\n
Hexclad tested reducing the number of cookware sold in their bundle, from 13 to 12 without changing its price.<\/p>\n\n\n\n
ARPU didn’t drop but the gross margin increased due to a decreased COGS<\/strong>.<\/p>\n\n\n\n
If you detect that returns are a big cost in your P&L, an improved sizing guide could decrease it.<\/p>\n\n\n\n
Or if you see that Afterpay is eating a percentage of your profits, you could try removing it and check if ARPU decreases.<\/p>\n\n\n\n
Don’t sleep on variable costs – there’s a huge opportunity here.<\/p>\n\n\n\n
Fixed Costs<\/h2>\n\n\n\n
These are all the costs that don’t increase as your sales increase – at least proportionally.<\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
\n
Customer service<\/li>\n\n\n\n
Rent<\/li>\n\n\n\n
Marketing personnel<\/li>\n\n\n\n
Marketing apps<\/li>\n\n\n\n
etc.<\/li>\n<\/ul>\n\n\n\n
One of the ways to reduce the percentage that these costs represent in your P&L is to increase revenue.<\/p>\n\n\n\n
But often, this is a hard thing to do.<\/p>\n\n\n\n
Another option is to think outside the box and build experiments that aim to reduce them<\/strong>:<\/p>\n\n\n\n
\n
A\/B test offering AI support <\/strong>instead of humans and checking for efficiency and quality<\/li>\n\n\n\n
Improve your FAQs <\/strong>and determine if that decreases the number of tickets created<\/li>\n\n\n\n
Investigate if your affiliate or SMS apps generate incremental revenue or not.<\/strong> If they aren’t, delete them<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Learn the formula that will help you scale faster than you ever imagined.<\/p>\n","protected":false},"author":1,"featured_media":553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_oxygen_hide_in_design_set":false,"_oxygen_tags":"","footnotes":""},"categories":[28],"tags":[],"class_list":["post-410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"\n
The Formula You Need to Unlock Your eCom Growth<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/asteroi.co\/en\/https-jcgiusto-com-the-formula-you-need-to-unlock-your-ecom-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Formula You Need to Unlock Your eCom Growth\" \/>\n<meta property=\"og:description\" content=\"Learn the formula that will help you scale faster than you ever imagined.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/asteroi.co\/en\/https-jcgiusto-com-the-formula-you-need-to-unlock-your-ecom-growth\/\" \/>\n<meta property=\"og:site_name\" content=\"ASTEROI\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-17T07:41:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-19T16:07:16+00:00\" \/>\n<meta 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