Some online businesses thrive (and keep on thriving), whilst others are stuck in the weeds. Why?
A quick perspective on the 1% vs the 99%…
Getting left behind
What I see is this: the top 1% of online businesses CRUSHING it, and 99% getting further and further behind.
Why is this happening?
An analogy: a few months ago my daughter (a toddler) was crawling. Meanwhile, some of her peers had started to walk.
As any parent will tell you, once they walk, it’s not long before they RUN.
If you hang out with parents of young children, you’ll see all these mini-humans running riot around the house, whilst others are pretty sedentary.
That’s how it is in life. Once you figure something out, it becomes MUCH easier to take it to the next level. That’s the power of compound learning.
In an ecommerce context, this explains why we see inferior website experiences (things like slow loading webpages, pages errors, broken links, poor checkout processes and site navigation. BASIC stuff!), whilst some companies are doing stuff like regression analysis and multivariate testing to truly refine a customer-centric website.
Frighteningly, because of the nature of compound learning, the gap between the 1% and the 99% is getting bigger. It’s creating a huge disparity in profitable returns.
Because you either have the right talent, processes and tools, or you don’t.
In ecommerce, there are so many moving pieces: retail operations, web traffic, web analytics, user research, copywriting, UX design, web development, statistical application, etc.
Chances are that you have a limiting constraint. Since your processes are in some way DEPENDENT on each other, a limiting constraint can contribute to sub-optimal revenue performance. To crack the code, find your limiting constraint, and optimise it.