Revenue Per Visitor: Metric of the Week

Welcome to the Metric of the Week. This week we’ll be discussing ‘Revenue Per Visitor.’

What is the metric?

Revenue Per Visitor (RPV) is the amount of revenue you generate per visitor to your website.

For example, if you are an e-commerce company, and generate $100 in sales per every 200 visitors, then your RPV is $0.50.

If you aren’t selling products or services on your website, you also track Leads Per Visitor (LPV). Leads can be visitors who complete forms on your website and/or call you (use call tracking systems to track this). As an example, if you receive 5 telephone calls and 7 form completions per 200 visitors, your LPV is 12 out of 200 or 6%.

Importantly, even if you aren’t selling products or services on your website, tracking RPV is helpful as there should generally be a positive correlation between website visitors and sales. And if you see RPV dropping, it tells you there’s an opportunity to improve your website to generate more leads and sales.

Why should you care?

Regardless of whether your traffic is paid (e.g. pay per click) or free (e.g., organic, referral, etc.), if you can improve your RPV or LPV, your sales will increase with no additional advertising costs (so profit goes up dramatically).

Also, if you’re able to generate a higher RPV or LPV than your competitors, you can dominate them online. For example, if all of your competitors have an RPV of $0.50 to $0.60 and your RPV is $1.00, then you can bid $0.61 on pay per click advertising. None of your competitors could match you (or they’d lose money). So you would be the #1 placed advertiser, receive the majority of the clicks, and have a nice profit on every visitor who clicked.

What does it look like?

The chart below shows RPV rising each month as the company tracks and improves this critical metric.


How can you positively affect this metric?

To improve RPV or LPV, optimize your website pages. Test the positioning of your content. Test your headlines and images. Review heatmaps to see what visitors are doing now, and test new ideas to get more of them to take the precise actions you want.

Share this Post