If you’re considering trying anything new for your business, you probably ask yourself a few key questions along the way.
- How much does the new thing cost?
- How much more revenue will I earn using it than I did before?
- How hard is it to set up?
- Do I have the right team in place to maintain it?
- What other choices do I have?
We’re here to focus on the second question. At Liftopia, we are often asked by prospective customers how much more revenue they can expect to earn online using Cloud Store compared to their current e-commerce solution. While the answer is partly “it depends”, we know the answer is most certainly more than they did before!
In their first year of partnership with Liftopia, new customers have earned between 1.2X-27X more revenue than they did the year prior on a different e-commerce solution.1 The median of the sample is 3.8X.
You are likely wondering, why is there such a big (crazy!) range in the numbers, and it’s a great question! There are a number of factors that can influence first year performance compared to a prior solution, but we’ll point out a few of the major factors:
- What type of pricing strategy did the customer use on their old e-commerce solution?
- What was the user experience like on the old e-commerce solution?
- How fully did the customer commit to dynamic pricing in their first year of partnership?
- What was their marketing strategy like before Cloud Store?
- How strong was the customer’s marketing when they switched to Cloud Store? Did they consistently tell their customer base to buy in advance and save, directing traffic to their site across multiple channels?
- What type of product mix was in place?
We’ve seen extraordinary growth (27X) from new partners like Arosa Lenzerheide, who committed fully to a dynamic pricing strategy across an array of products, and promoted their Cloud Store with well thought out marketing plans and website CTAs.
One thing we know for sure is that no new partner2 has ever shown a decline in online sales. While many factors can influence the exact year-over-year growth, switching to Cloud Store with dynamic pricing should be an easy decision.
1 Data taken from a sample of new customers over the past three years
2 For whom we’ve obtained prior sales data