Making money from e-commerce is not easy, but once you understand what turns your effort into sales, you will be good to go (and grow).
ROI, or return on investment, is a must-do measurement for every business. It’s like a compass that navigates you through the market opportunities and helps you to edge you out of the market.
For eCommerce companies, including live and on-demand video broadcasters, there are two key factors that impact their ROI:
- Conversion rates,
- and refund rates.
If you wish to maximize your growth, you will need to skyrocket your conversions while keeping the refunds to the minimum.
Boosting the ROI is easy, if you stick to those 3 steps:
1. Invest in quality
Sounds like a no-brainer, but we've seen many failed events (examples: AWS Summit or the Oscars ceremony) utilizing a low-quality pay-per-view solutions. Obviously, the quality solutions come at a certain price, yet over time, they always benefit you.
Smart eCommerce business owners invest in quality to permanently improve their sales and cost per sale, and thus their ROI of their Live pay-per-view events.
Simply compare the gains and losses if you decide to go for a cheaper solution that won't guarantee you the best quality. Let's say you have sold your event to 10K viewers, charging $10 per ticket:
How to tell a good monetization solution from a bad one? Here’s a checklist that will help you decide on the outset:
- Does the solution work with the major OVP platforms to guarantee your viewers a seamless broadcast experience?
- From a usability standpoint - will your customers be able to buy within a click? Or, they will rather be dragged through a tiring purchase process?
- Is the payment flow and choice of methods optimized?
- Can you sell globally, without worrying about the tax differences between the countries?
- Will your customers receive professional and timely support?
2. Keep your customers happy - they will tell others
If you want a share of the already crowded eCommerce market, you need to build it around loyal customers who are likely to recommend you further. This is especially true for Live pay-per-view events where time is of the essence.
The ephemeral nature of Live events, together with the strong emotions linked to them, require a real-time support for your customers. Don’t make the mistake of under-investing in your support teams, especially when you’re first starting out.
3. Scale up with different business models
There is a thing called Customer Lifetime Value. Winning new customers is a fantastic investment only if you know that a healthy percentage of these customers will buy again and stick to your offer.
You can easily make your customers stick not only through a great UX experience during the purchase and accessing your event, but also through a wider offer. Become more flexible by combining different online video business models: pay-per-view, rental, bundle and subscription.
The time to claim your space on the OTT market is now.
Don’t settle for “good enough", go for Cleeng!