CRA Business Marketing Explored

By Dean Currall

The compound effect is a secret weapon for e-commerce marketing and are achieved when all the e-commerce tools are implemented and working together.


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From UX and site design to conversion rates, search functionality, cross-selling opportunities and social advertisements, many factors contribute to e-commerce success. When all of these tools are implemented and work together, this is known as the compound effect. And it’s one of many things not enough people know about when it comes to e-commerce marketing.


What Is The Compound Effect?

The compound effect is the strategy of reaping huge rewards from a group of small actions. I’m sure you’ve heard the story about why you should choose a single penny that doubles each day for 30 days over $10,000 today because in 30 days you’ll have over $5 million. This is because of compounding, and it’s the perfect analogy for compound marketing.

A big “blow-the-budget” marketing campaign may bring an influx of increased revenue but once that campaign is over, this will likely fade to nothing. Or worse, it won’t have the impact you hoped. By making informed decisions surrounding your marketing processes, you can continually optimize and improve. These small changes then generate bigger and better results for your business in the long run.


Compound Marketing For E-Commerce Businesses

The best part about the compound effect is that it is the culmination of many incremental changes, not a huge campaign into which you pump a large portion of your marketing budget. This is one of the reasons it’s a great option for smaller e-commerce businesses: you don’t need a huge budget to get started.

Making smart choices and maintaining consistency is the key to successful compound marketing. As long as it adds value or improves on a process or function and is applied consistently over time, then even the most minimal of changes will have a huge long-term effect.

Most businesses want a quick, one-size-fits-all approach. But there is no magic solution that will grow your business overnight. And investing all your money into one approach is dangerous, because what happens if you wake up tomorrow and it no longer works?



We’ve seen an example of this recently with the iOS 14 update that meant Apple users could opt-out of data sharing on every app. Advertisers are so reliant on this data to personalize ads and reach their target audience that this update had a major impact on businesses that relied on social ad campaigns.

Investing a smaller amount of time and budget into a range of different strategies and approaches means you can make a lot of small changes and learn as you grow. This method helps ensure you aren’t reliant on a single revenue source.

If you don’t take the time to review the data and constantly analyze and improve, you could end up throwing your marketing budget down the drain. Focus on fixing smaller issues first — this can help you generate more without spending more.


Compound Marketing Works

I know the compound effect works because it’s a strategy I have utilized many times for my clients to great success. A perfect example is a client who set me the goal of increasing revenue through their site by 50% in 12 months. By implementing the compound effect, I actually managed to increase their revenue by 250% in the first year.

When I looked at their site analytics, I saw they were already getting a lot of traffic but their conversion rate was low. So instead of spending more on ads, I focused first on making vital improvements to their website, improving the UX, increasing site speed, adding better search functionality and an easier checkout process. This improved the conversion rate, which increased revenue significantly without spending extra money on promotion.

I then implemented cross-selling strategies across the site to increase the average order value, getting people who were already buying to spend more. This increased revenue further, still without extra spending. Only then did I focus on promotion, developing thriving social media channels and increasing their following, building paid ads on Google and Facebook and implementing affiliate marketing. All of these strategies together contributed to not only a 250% increase in sales in the first year but a further 361% increase the following year as I continued to monitor the data and make small improvements.

The results of these small approaches add up. And if it turns out one tactic doesn’t really work for your business, you’re not losing much. Compound marketing allows you to take small risks and learn as you grow. Over time, you’ll have built up a network of different factors that all work together to generate increased revenue.


Main Image: Getty



Article Credit to Forbes.


Have you thought of using e-commerce in your business to sell augmented products to your current clients? Do you think having an e-commerce site can create another income stream for your business? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.



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