Hiblendr became popular by introducing "Starbucks-like" portable blenders.
In our conversation, Andrew shared how they built the brand to 40,000+ customers, through creating a dream target list. And giving away blenders to influencers.
Today, I'm going to break down their E-Commerce strategy and reveal how they grow revenue.
3 ways to grow revenue
At the end of the day, it comes down to math. Here are the three revenue multipliers:
- Increase # of customers – What MOST people focus on.
- Increase average order value (AOV) – Increase basket size.
- Increase purchase frequency – Get customers to buy more.
Most people focus on trying to increase customers. But true growth comes when you're able to increase AOV and purchase frequency.
Let's dissect how Hiblendr does this.
A portable blender is RM239. Assuming a 1,000 customers.
- # of customers: 1,000
- AOV: RM249
- Purchase frequency: 2 blenders a year
Annual revenue: RM498,000
What if he increases each by 30%? Here's what happens:
- # of customers: 1,300
- AOV: RM323
- Purchase frequency: 2.6 blenders a year
Annual revenue: RM1,091,740
With just a 30% increase, revenue more than doubled. I'm being unrealistic here with 2.6 blenders, so let's see how Hiblendr grows their revenue in real life.
1/ Increase Average Order Value (AOV)
You can't just increase your prices for no reason. Instead, think about ways to add value to your customer and increase the price with it.
Hiblendr creates bundles to increase their average order value:
Price is never the objection.
2/ Optimize purchase frequency
In reality, once a customer purchases a blender, they don't buy another blender – unless they have to replace it.
To create buyer frequency, Hiblendr launched a meal replacement product and created a subscription model.
Their customers loved it.
To figure out a way to increase purchase frequency, ask, "What is my customer's recurring need?"
What is my customer's recurring need?
3/ Increase # of customers
Apart from running ads, how does Hiblendr continue to increase the number of customers?
They focused on reactivating past clients, offering new products – like the Hello Mat.
With a little creativity, most businesses can implement the three revenue multipliers.
It won't happen overnight. But you can always focus on taking the first step.
Double or triple your E-commerce revenue
We've just landed a new workshop made for E-commerce stores. This workshop will be co-hosted with User Experience (UX) experts and marketing optimization platform, Mida
The workshop will help E-Commerce brands double or triple their revenue – with no additional ad spend.
But it's not for everyone. To join, you must have a minimum of 20,000 monthly website visits to your e-commerce site.
