Revenue per visitor (RPV) is a simple, yet important metric for ecommerce stores. It tells you how much revenue your website or store is generating on average for each unique visitor.
If you’re running a website or online store and want to know more about revenue per visitor or ways to boost RPV, this article has you covered.
What is Revenue Per Visitor (RPV)?
Revenue Per Visitor (RPV) is a metric that measures the average revenue generated per unique visitor to a website or online store.
This metric is used to assess the overall performance of a website or online store in terms of generating revenue and can be used to compare the performance of different websites or online stores.
How to calculate RPV for ecommerce brands?
To calculate RPV, simply divide the total revenue generated by the number of unique visitors to the website or online store.
For example, if a website or online store generated $100,000 in revenue from 1 million unique visitors, the RPV would be $100.
RPV = Total Revenue / Number of Unique Visitors
As you can see, RPV is a very simple metric to calculate. However, it’s also a very important metric because it tells you how much revenue your website or online store is generating on average for each unique visitor.
How average order value impacts your RPV
A related metric that has a direct impact on RPV is average order value (AOV). It is the average revenue generated per order across your store.
If you have 1000 orders in a month with revenue totaling $40,000, your average order value is $40.
Notice how we’re working on individual orders when calculating AOV instead of the number of customers. So 100 customers could place 10 orders each or you could have 1000 unique customers in the above case.
AOV is important because when you improve the revenue per order, the total revenue per visitor automatically goes up.
If you want an easy and automated way to increase your AOV, you may find AOVBoost useful. It is a powerful Shopify Plus app that offers rule-based upsells and cross-sells to customers and boosts your overall revenue without additional effort.
Why is RPV Important?
Revenue Per Visitor is important because it allows you to assess the performance of your website or online store in terms of generating revenue. It also allows you to compare the performance of different websites or online stores.
If you’re running a website or online store, then you need to be aware of Revenue Per Visitor and strive to increase it. The higher your RPV, the more successful your website or online store will be in terms of generating revenue.
5 tips to boost the revenue per visitor (RPV)
Raising RPV will lead to more revenue and increased profits for your business. So it makes sense to invest in ways that can help you increase your RPV. Here are seven tips to get you started.
1. Offer free shipping over a minimum cart value
Amazon made free shipping common and raised the bar for the entire ecommerce industry. 66% of people now expect brands to offer free shipping.
While offering free shipping may not be feasible at all times, you can calculate the cost of shipping and offer it free over a certain cart value.
This strategy also helps you boost your average order value which in turn can raise the overall store’s revenue per visitor.
2. Upsell and cross-sell products
Upselling and cross-selling are one of the most effective ways to boost conversion rate and sales. Over 35% of Amazon’s revenue comes from up-selling and cross-selling. This just goes to show how effective these strategies can be in boosting RPV.
For instance, if someone purchased running shoes from your online store for $100 but didn’t purchase a pair of socks with it which costs only $10, you can show them relevant offers when they are checking out or even after they have made the purchase.
You could also offer them discounts on their next purchase if they buy more items together. If you want to learn more about upselling, this article will help you how to upsell like a pro for increased profits in your business.
3. Use scarcity or fear of missing out (FOMO)
When the largest ecommerce operator, Amazon, uses scarcity to its advantage, you can certainly try it out. Amazon regularly displays items left in stock, the amount of time left for Prime Day to begin or end, and the number of deals already claimed by customers.
All of this creates a sense of urgency and encourages customers to buy before it runs out of stock.
You can use scarcity on your home page as well as product pages and category pages to drive sales and boost conversion rates. You can also offer discounts on these products which will further motivate people to make a purchase quickly.
4. Use retargeting techniques
Retargeting involves showing ads to people who have already visited your website but didn’t make a purchase. This allows you to stay top of mind and remind them of your products so that they’re more likely to come back and buy something from you eventually.
On average, retargeted ads have a 10x higher click-through rate than regular display ads. So if you’re not using retargeting as a part of your RPV strategy, you’re missing out on a lot of potential revenue.
Get started with boosting your RPV today
RPV is a very important metric for any website or online store. It helps you see how the traffic you bring to your website is impacting your bank account. If you’re running a website or online store, then you need to be aware of revenue per visitor and strive to increase it.
If you have a Shopify Plus store, boosting your RPV can be simpler with AOVBoost. AOVBoost does to your Shopify store, what supermarkets do to their checkout counters — display impulse items right before billing desks so customers can pick them up and increase their RPV.
AOVBoost is a powerful checkout upsell and cross-sell app for Shopify. It enables you to display your best offers right before the customer proceeds to pay, thus increasing the chances the conversion.