Jim realized Mike J. would not invest without a winning profitable strategy. Charging more, maybe for shipping, was vital to being profitable.
Dollar sales were steady and rising but charging for shipping turned off buyers – shopping cart abandonment increased. First-time customers used a discount. Repeat purchases dropped. There were many complaints on social media about how a repeat buy was pricey. The campaign to improve prospecting via social media didn’t visibly increase sales. The product selling didn’t increase customer counts by much. Jim had put more money in this month.
What else they could do for profit and increase new customer sales – Jim’s team repeated some earlier suggestions. He decided to keep charging for shipping. He killed the social media campaign for the moment.
Jim told the team he was asking what else would lower costs and raise revenue. “If we can find a tactic, there might be money from an investor.”, he said. The number in Jim’s head was for more revenue. He didn’t ask Mike J.’s question on customer acquisition costs.
Jim’s Decision — Keep charging for shipping Choice removed Wait
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