Why Should We Use RPV?
Managing an online business also means measuring and analyzing immense amounts of data. Conversion rates, bounce rates, AOV, and dozens of other metrics are tracked by retailers around the world, but not all of these strategies are necessary for each individual business. If you feel overwhelmed by the number of KPIs to choose from for your own online store, RPV is a great option for all merchants to take into account.
What is RPV?
Revenue per visitor (RPV) is fairly simple to calculate: just divide the total revenue earned by the total number of visitors within a certain time period. For example, if you earned $10,000 in September and had a total of 1,000 visitors, your RPV would be $10.
RPV actually combines AOV (average order value) or CR (conversion rate) alone into one single metric, so it can offer more insights regarding the overall performance of your site. If you look at each of these elements individually, you can begin to see how each metric affects the others to start improving your metrics across the board. For instance, your RPV can help you figure out how much you should spend on attracting new customers and how well your current marketing efforts are working.
Why RPV is Important
When tracked individually, CR and AOV have their limitations. Measuring your conversion rate will show you how many visitors to your website end up making a purchase, but this metric leaves out the amount people spend per order. On the other hand, the average order value will show you exactly that: the average amount customers spend on your site. However, since this doesn’t track conversions from each visitor, it can give you misleading results about the performance of your site.
RPV is typically the best indicator to review when you make a change on your site. If your RPV steadily increases, it means that you’re attracting more visitors and earning more sales. If you notice your RPV decrease, you may need to try optimizing your checkout, simplifying your mobile site, or speeding up your site.
How to Improve RPV
If you’re seeking ways to improve your website before the holiday season is upon us, join the Mobile eCommerce Optimization Initiative for the latest information and insights. With over 120 experiments to date, retailers just like you have been able to find the best practices for boosting mobile conversions, reducing cart abandonment rates, and much more.
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