Day 179: Strong Profit, but Drop in Average Order Value

Today’s update is a quick snapshot covering the last couple of days and how the funnel has been performing overall.

While there haven’t been any major changes made recently, the numbers still reveal some useful insights.

One of the interesting patterns emerging right now is that although daily profit remains strong, the average order value has unexpectedly dropped. That shift is worth watching carefully.

Key Takeaways

Sales over the last two days averaged roughly 900 dollars per day.


Profit is currently running at around 450 dollars per day, which is close to the target range.


Average order value has dropped from around 45 dollars to 36 dollars.


The current landing page split test is surprisingly performing worse than expected.

Sales Performance Over the Last Two Days

Looking at the 24th and 25th combined, total sales came in at 1,963 dollars. That puts the daily average at roughly 900 dollars.

Over those same two days, ad spend totalled 794 pounds, which translated to about 1,072 dollars.

That leaves approximately 894 dollars in profit across the two days. When averaged out, that’s roughly 450 dollars per day in profit.

Those numbers sit comfortably within the overall target range for the funnel. Maintaining profits at that level keeps the business moving toward the yearly goal.

A Good Run of Sales Days

Looking at the broader trend over the past week, there has been a fairly consistent run of strong sales days.

Several days have been landing around the 900 to 1,000 dollar range, with one recent day reaching 1,060 dollars in revenue.

This kind of stability is encouraging because it suggests the funnel is currently operating in a reliable performance band.

When revenue consistently stays within that range, it creates predictable margins and makes scaling decisions easier.

The Unexpected Drop in Average Order Value

One surprising development is the drop in average order value.

Previously the funnel had been maintaining an average order value of around 45 dollars. Recently that number has fallen to roughly 36 dollars.

That shift is significant because average order value plays a major role in determining how profitable the funnel can be.

Even small changes in this metric can dramatically affect overall margins.

Why Average Order Value Fluctuates

The drop doesn’t appear to be caused by any major funnel changes. Instead it seems to be linked to the type of customers currently coming through the system.

In particular, the uptake on both the order bump and the upsell offers has been noticeably lower over the last couple of days.

Although the funnel is still generating plenty of purchases, fewer buyers are choosing the additional offers. That naturally brings down the overall order value.

This is often related to audience quality rather than funnel structure.

Current Split Test on the Landing Page

Another interesting point is the current split test running on the landing page.

The test is extremely small in terms of changes.

The only difference between the two pages is that the new version reinforces the bonuses within the two-step order form.

The idea behind this was simple. Reminding customers about the value of the bonuses at the point of checkout might encourage them to complete the purchase.

However, the early results are actually showing the opposite effect.

Early Results Are Counterintuitive

So far, the variation that highlights the bonuses is performing slightly worse than the original version.

That result goes against what would normally be expected. Reinforcing value near the purchase point often helps conversions rather than hurting them.

However, the data set is still small. Only a limited number of sales have gone through the test so far.

Because of that, it would be far too early to draw any meaningful conclusions.

Why Patience Is Important in Split Testing

Situations like this are a good reminder that early split test data can be misleading.

A test can look like a clear winner during the first few days and then reverse once more traffic flows through the pages.

For that reason, this test will continue running for longer before any decision is made.

Only after enough sales have occurred will it be possible to determine whether the change actually affects conversions.

Today's Early Performance

Today’s sales are currently sitting at around 168 dollars as of midday. That’s relatively low compared to the previous few days.

At this pace the day may end up producing a weaker result overall.

However, daily fluctuations like this are normal in online sales funnels. What matters far more is the trend across longer time periods.

Where the Focus Will Shift Next

At the moment most attention has been directed toward another project rather than actively optimising the funnel.

Because of that, the funnel has largely been running on autopilot over the past few days.

That situation will likely change soon. If ad creatives are not refreshed periodically, performance can eventually decline as audiences become saturated.

When that happens, the next priority will be creating new ad creatives and revisiting strategies to increase average order value and lifetime value.

The Upcoming Six-Month Milestone

The funnel is now approaching day 179, which brings it very close to the six-month mark in this twelve-month journey.

That milestone will provide a valuable opportunity to step back and review the overall progress.

At that point the numbers will reveal how close things are to the goal of reaching 240,000 dollars in revenue for the year.

Closing Reflection

For now the funnel continues to generate strong profits even without daily intervention. That stability is a positive sign.

However, maintaining long-term performance will eventually require renewed attention to optimisation and testing.

The next few weeks will likely involve shifting focus back toward the funnel to ensure momentum continues during the second half of the year.

jonathanhowkins.com

I want to help Course Creators succeed in predictably and profitably generating more leads and sales using Facebook Advertising.