Revenue Per Visitor (RPV)
When referring specifically to personalization, Revenue Per Visitor (RPV) reports the average amount of money generated by visitors that saw an experience. It is a composite metric that combines Conversion Rate and Average Order Value.
How do you calculate revenue per visitor (RPV)?
You calculate RPV by dividing the total revenue by the total number of unique visitors.
total revenue ÷ total unique visitors
Why is revenue per visitor important?
RPV is widely regarded as the most important metric for reporting the health of your online brand presence. Taken together with other business metrics, such as Revenue Per Converter and Conversion Rate, RPV provides a good overall insight into what is working and not working in your online store.
How can you improve revenue per visitor?
There is no one-size-fits-all method for improving RPV; what works for one brand might not have the same impact for another.
Tried and tested techniques include upselling, product recommendations, and reward programs—in their own way, each is designed to increase the amount of money each of your visitors spends on your products or services.
To improve RPV, you need to focus efforts on increasing your Conversion Rate (CR) and on increasing the amount of money spent by each visitor to your site, better known as Average Order Value (AOV).
Working with some of the leading brands across retails, gaming and travel sectors, Qubit has proven that implementing best-practice personalization tactics is an effective way of increasing your CR and AOV. Commonly-used tactics include:
- Social proof - provides confidence in the purchasing cycle by badging an item with the number of visitors that are looking at it or the number of times it’s been purchased within a certain time period.
- Low-stock pointers - create a sense of urgency by displaying the stock level of a currently viewed item.
- Product recommendations - help customers to explore further and deeper into your product catalog by surfacing product recommendations based on their viewing and purchasing preferences. Surface cross-sell and up-sell recommendations, delivered at the most impactful point in the customer journey.
- Loyalty programs - tiered loyalty programs are effective at driving engagement and adding value for your most loyal customers. By segmenting your higher-spending customers and frequent shoppers as VIPs, for example, you can deliver targeted messaging and make loyalty aspirational.
- Time-limited offers - creating a sense of urgency has been shown to reap rewards. Our analysis shows it can deliver an average uplift of 1.5%. This is achieved by imposing time limits within which customers must complete their purchase. This taps into scarcity economics and social proof techniques to push conversions; visitors don’t want to miss out on an item or a limited-time discount.
As mentioned, however, there is no simple off-the-shelf solution for improving RPV. The most successful brands employ a robust A/B testing strategy to measure the impact of your personalization efforts, find out what works and what has the greatest impact across your range of experiences.