Revenue Optimisation
Growing revenue per customer rather than customer count: pricing, basket size, repeat purchase and the offers that raise value without training people to wait for a discount.
Overview
Acquisition gets the attention because it is visible and easy to spend money on. Revenue per customer is where most stores have more room and less competition: basket size, repeat rate and price are all levers that do not require winning a new customer at all.
Pricing in particular is under-examined. Most businesses set prices once, adjust for cost, and never test what the market would actually bear. It is usually the fastest available improvement to margin and the one people are most reluctant to touch.
Who this is for
- Companies whose acquisition cost has passed what a first order returns
- Retailers with a low repeat purchase rate
- Businesses that have never systematically examined their pricing
How we approach revenue optimisation
The specific pieces of work a typical engagement covers. Scope is agreed up front — nothing here is a surprise line item later.
Pricing analysis
What the market will bear, tested where possible rather than assumed from cost plus a margin.
Basket size
Bundles, thresholds and recommendations that raise order value without feeling like a upsell at the till.
Repeat purchase
Why customers do or do not come back, and the interventions that change it. Usually worth more than any acquisition improvement.
Subscription and replenishment
Where the product suits it, recurring purchase changes the economics completely and is often available without much work.
Promotion policy
Rules on discounting, because an unmanaged promotional habit permanently resets what customers will pay.
Lifetime value modelling
What a customer is worth over time, by segment, which determines how much acquisition can afford to spend.
From first call to measured result
The same sequence every time, so you always know what happens next.
Model
Build lifetime value and margin by segment so the size of each opportunity is visible.
Prioritise
Rank the levers: price, basket, frequency or retention, by achievable gain against effort.
Test
Trial changes on a segment or region before rolling out, since pricing mistakes are hard to reverse.
Roll out
Implement what worked, then re-model, because the economics change once the first lever moves.
Outcomes, not deliverables
A pile of artefacts isn't progress. These are the changes the work is meant to produce — and what we report against.
Margin without more traffic
Price and basket improvements apply to existing demand, so they reach the bottom line directly.
Room to outbid on acquisition
A higher customer value lets you pay more per customer than competitors can, which is a durable advantage.
Retention that compounds
Repeat purchase improvements change the growth model in a way single-order gains do not.
Discounting under control
A promotion policy stops customers learning to wait, which is a slow and expensive habit to reverse.
Common questions about Revenue Optimisation
The things people ask before they get in touch. If yours is not here, ask us directly.
Is raising prices risky?
Less than most businesses assume, and it should still be tested rather than assumed. A modest increase on a segment or in one market shows the elasticity quickly, and price is usually the fastest available improvement to margin.
How do we increase average order value without irritating customers?
Relevant recommendations and sensible thresholds work; aggressive upsell at checkout does not, and it costs completed orders. The test is whether the suggestion would genuinely help the person buying.
Should we run fewer promotions?
Usually. Frequent discounting teaches customers to wait, and once that is learned full-price sales fall permanently. A policy with defined promotional periods protects margin considerably better than opportunistic discounting.
How is this different from e-commerce strategy?
Strategy decides where growth comes from across the whole business including channels and range. This is the focused work on revenue per customer. Clients often do the strategy first and find this is where the constraint sits.
Thinking about Revenue Optimisation?
Tell us what you are trying to change. If we are not the right fit we will say so, and point you somewhere better.
Looking at the wider picture?
Revenue Optimisation usually sits alongside other work in E-commerce & Revenue Enablement. Browse the full area to see what it connects to.