Revenue Per Visitor

As the name suggests, revenue per visitor (RPV) measures the amount of revenue generated for each visitor that comes to your site. It’s calculated by dividing total revenue by the total number of visitors to your site.

Calculating Revenue Per Visitor

Let’s say your revenue for a month was $5,000 and your site had 1,000 visitors. Your RPV would be 5,000/1,000 which is $5 per visitor.

The Importance Of RPV

RPV lets you see how your website is performing and can be a useful metric to determine how much to spend on user acquisition. Having your RPV going up can show that your website is becoming more effective at converting visitors while a decreased RPV could be an indicator that you should make changes to your site or you’re not attracting the right people.

The Downside Of Measuring RPV

RPV is a metric that doesn't necessarily track the success of your site. Let’s say you have a lot of people coming to your site compared to those making a purchase, that would negatively impact your RPV even if revenue was going up. Low traffic of qualified visitors can be better than high traffic of low quality visitors who don’t plan on making a purchase. Someone who visits your site may not convert immediately, but could sign up for your email list which could lead to a purchase down the road.

Alternatively, a metric you can use is average order value to try to increase revenue from people who are already making purchases on your site.

Increasing RPV

You can increase your RPV by increasing the number of people who convert on your site or by increasing the order size of users who make a purchase.

You can increase conversions by optimizing your site, having clear call to actions and using social proof such as highlighting some of your notable existing customers. You can increase your order size by suggesting add on’s to purchases, or offering incentives for larger purchases such as free shipping on orders over a certain amount. A/B testing is a great tool to optimize your site.

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