Quartile’s New Study Reveals the Valuation Multiplier Formula for Online Sellers
Every company would like to increase its brand valuation. Conventional wisdom will tell you that it takes the right product, being in the right place at the right time, a lot of hard work, and a little bit of luck. But what if there was a formula for increasing brand valuation?
Quartile, the world’s largest e-commerce cross-channel advertising platform, discovered that such a formula does exist. Based on the results of a study recently conducted by Quartile, e-commerce sellers can increase brand valuation by an incredible 130% when they follow the formula.
Want to find out what the formula is? And do you want to find out how you can replicate it in your company? Read on for the answers.
The First of Its Kind
Quartile conducted research with the biggest aggregators to understand what makes a company attractive to them. This study, the first of its kind, uncovered an interesting answer: it involves having a cross-channel strategy and building a strong brand online. This was a pleasant surprise for Quartile because that’s exactly what they do.
Quartile’s e-commerce cross-channel advertising platform is built on six patented machine learning technologies; the platform automates and optimizes advertising across the most popular e-commerce platforms — including Google, Facebook, Amazon, Instacart, and Walmart.
For years, thousands of sellers worldwide have used Quartile’s full-funnel optimization approach to unlock the full potential of their selling and advertising across multiple channels. These sellers will tell you that this cross-channel approach works. But in their dedication to their sellers, Quartile undertook the study to find the secrets of what makes a business more attractive to buyers and what the top aggregators are paying attention to.
Quartile’s research found that 93% of Amazon sellers who are also selling on their own website (as opposed to the marketplace only) received a significant valuation multiplier boost.
The result was pretty astonishing: brand valuation can be increased by 130% when sellers diversify their channels. With these incredible results, Quartile went to work to find the key variables in the buyer-seller equation.
Brand valuation can increase 130% when brands sell on marketplaces and direct-to-consumer
The Brand Valuation Formula
Quartile’s research uncovered the formula that gave such an increase in brand valuation to those sellers who diversified their channels: more than 20% of total online sales must come from a direct-to-consumer website, and that must count for over $1 million in sales.
The results of the study confirm that diversifying sales channels is one of the most effective strategies that any company can do to promote its brand. And if their sales profile fits th e above formula, they too will unlock the secret to increasing brand valuation.
The reason behind with game-changing result is more straightforward than expected. A brand with its own website has a valuable asset on its hands: customer data.
Customer data offers a deeper understanding and knowledge of client behavior and preferences, better audience segmentation for new campaigns, and more effective, low-cost strategies like email marketing.
Getting to know their customers, building a closer relationship with them, and selling via multiple channels had many positive impacts for these companies. Launching new products and collections was more successful. They also gathered more constructive feedback and suggestions for improvement.
It also shows that they are not just selling products. They are, in fact, building a brand.
All this helps when targeting new customers. By building lookalike audiences, these companies were able to extend their reach again and again.
"It's a flywheel effect: the more data you gather from customers, the better your marketing accuracy, the greater your reach, the more customers you get, and the more data you gather from customers again," said Quartile CEO Daniel Knijnik.
Fighting the Challenges of E-Commerce
Some of the biggest challenges facing e-commerce sellers today involve the processes of finding and retaining customers.
In particular, targeting the right customers, converting visitors, and creating customer loyalty are three of the biggest problems in e-commerce. But for those sellers who have managed to learn from their customer data and successfully apply the multichannel sales approach, it’s been easier to unlock the formula for success.
The flywheel effect
“The more data you gather from customers, the better your marketing accuracy, the greater your reach, the more customers you get”
Of course, finding the right partner for your online selling strategies is essential. That’s where Quartile comes in.
Quartile Is Your E-Commerce Partner
Quartile's patented machine learning technologies automate and optimize e-commerce advertising on the most popular platforms in the world. Brands that work with Quartile see increased sales due to the platform's ability to cut through the noise of today's competitive digital marketplace.
To unlock the formula for brand valuation and rapid revenue growth, schedule a free consultation and demo with our strategy team. We’ll analyze your entire catalog, align on key goals, and uncover new sales opportunities that can expand your customer base and improve company ROI. Quartile maximizes sales on Amazon, Google, Facebook, Instacart, Walmart, and more
Schedule your free demo, and learn more about Quartile’s award-winning solution.