What is Revenue Per Visitor (RPV)?
Revenue per visitor (RPV) is a key metric for retailers and brands to monitor the total amount of revenue generated per unique visitor to your eCommerce site.
RPV is a critical key performance indicator (KPI) for eCommerce brands and retailers. It should be measured alongside other key metrics such as Conversion Rate, Average Order Value, Cost Per Acquisition, and Cart Abandonment Rates (amongst others).
How is Revenue Per Visitor calculated?
RPV is calculated by dividing total revenue by visitors over a given time period. This can be measured at any time interval, whether this be daily, weekly, monthly, quarterly, yearly or for specific time periods (such as retail’s Black Friday) where you want to isolate the data for more in-depth analysis.
Revenue Per Visitor (RPV) = Total Revenue / Total Visitors
For example, if your eCommerce web sales for a given month totalled $250,000 and you had 20,000 total visitors, your RPVs would be as follows:
Revenue per all visitors/visits = $12.50
Key watchout: These visitors are unique visitors only. Be mindful of choosing enough data to be statistically significant and consider whether one-off larger orders may be skewing results.
Why is Revenue Per Visitor important?
As with other performance metrics, RPV can provide valuable context and insight for eCommerce retailers. Understanding how much an average customer spends helps retailers shape not only their marketing efforts, such as campaigns, and up-sell/cross-sell tactics, but also future product strategy and resources.
For example, if running a discounted offer on a specific product but with the intention of cross-selling other items, does the RPV indicate that customers only purchased that product, or did they add other non-discounted products to basket?
To find out more, read our guide to increasing Revenue Per Visitor.
Why choose Taggstar to increase your Revenue Per Visitor?
Taggstar enhances Revenue Per Visitor by leveraging real-time social proof. Powered by machine learning, the Taggstar platform offers scalable real-time social proof solutions, including social proof messaging, social proof recommendations, and eXtended Messaging.
Join the growing list of leading global brands & retailers that trust Taggstar to elevate their shopping experiences and drive significant sales lift.