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E-Commerce Marketing Tip #3 – The Most Important Metric


Per visit value

Among the most significant metric that all ecommerce businesses need to focus on these days is “per visit value”. Such a value represents the ratio between the total number of website visitors and amount of sales. Let’s say you had a 100 people go to your website and you’ve made a sale worth $300, your per visit value would then be $3.

So what makes this value so important? Well ecommerce businesses made aware of such values can use it as a base line for the amount that they can afford to spend buying valuable traffic for their website.  If your per visit value is $3, this would mean that you can afford to spend a dollar acquiring traffic and net a sale of $2. Of course you also have to consider cost of goods and other expenses but that’s how it essentially works.

The simplest way to determine per visit value is through Google Analytics. Different traffic sources come with various per visit values so you need to find the source that yields the most per visit value and build your marketing strategy around them simply because that is where a bulk of your sales is going to be.

Aside from traffic sources, per visit value can also differ greatly in terms of the relevant keywords used for your ecommerce website.  It’s important to keep such a fact in mind because you may have keywords driving tons of traffic to your website but unless the keyword’s per visit value is higher; your business is going to be at a total loss. Thus you need to look deep into the keyword level of your ecommerce strategy to see if they are actually making you money.

Increasing per visit value

Looking for ways to improve your per visit value? Strategies such as up sells, split testing price points and increasing sales conversion present some of the best ways of doing just that. Just make sure that you are looking at your per visit value based on a sufficient amount of data in order to draw out an accurate conclusion. If you are only looking at a limited amount of data taken from a small number of inconsistent sales that likely won’t happen in the next couple of months, you won’t get an accurate reflection on your per visit value and draw your business to a false sense of urgency or security.

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