WebsiteGear Logo Log In
New User? Sign Up
About | Contact | FAQ
  Home Content Website Promotion Advertising Friday, October 20, 2017 
Print| Email| Save| Discuss| Feeds


Value Per Visitor Performance Metric
Author: Kevin Gold
Published: Monday, November 08, 2004


The Importance of the "Value Per Visitor" Performance Metrics
Continuing on the list of performance metrics, the most important one is the "Value per Visitor" metric. It is a composite figure that consists of multiple, performance metrics including conversion rate, average value per completed action, number of unique visitors and number of completed actions.

For example, if the 1,000 unique visitors generated 2 sales worth $100 per sale or $200 in gross revenue then your “value per visitor” is $0.20.

Value per Visitor = Sales / Total Number of Visitors


The “value per visitor” indicates what you are able to spend per visitor (i.e. cost per visitor) in order to breakeven on your traffic or strategic marketing investment. If your website receives visitors at an average “cost per visitor” of $0.10 and your average “value per visitor” s $0.20 then for each new visitor you will gain $0.10 in gross profit.

Note: the “value per visitor” metric becomes more powerful for this type of analysis when you calculate it using all associated traffic costs including labor and material and net sales versus gross.

In addition to an internal, strategic decision-making tool, the “value per visitor” metric can also be used to evaluate external business opportunities.

For instance, if you were approached by a potential business partner and presented with an opportunity to receive 1,000 targeted visitors at a $150 investment, you could quickly do the math and use your average “value per visitor” metric as a baseline.

For example, 1,000 visitors for a $150 investment equates to a “cost per visitor” of $0.15. Using your average “value per visitor” of $0.20 you should earn roughly $25 per sale or $0.05 per visitor times 1,000, a total of $50.

However, depending on the size of the investment, you may suggest to your potential business partner a one-month test instead of a longer term partnering deal. Through performing a “test”, you could gather data and calculate a “value per visitor” specifically for the deal before jumping head-on into a long-term and potentially damaging engagement. By gaining measurable results you have negotiating leverage to work out an economical partnering deal or to pull the plug immediately with minimal loss.

Performance Metrics take the Risk Out of Your Decisions.

As Robert Kiyosaki stated in one of his best-selling books, “being uneducated is risky.” Adapting his advice to your online business, consider this:

“There are people who most often say, “new traffic channels, strategies, web designs, etc. are risky. For them that statement is true – but not because new traffic channels, strategies, web designs, etc. are risky. It is their lack of knowledge gained from tracking, testing and calculating their performance metrics that is risky.”

Knowing your performance metrics is advice you “need to know”.
Previous Article Five Performance Metrics
Print| Email| Save| Discuss| Feeds
RELATED ARTICLES
Nav About Website Conversion Rate
A conversion rate is a measurement of the percentage of visitors who complete a desired action. Learn more about conversion.
Nav Website Conversion Metrics Explained
Performance metrics are measurable results gathered and calculated from your business’ online systems and used to identify their aggregate and individual strengths, weaknesses and opportunities.
Nav Setting Marketing Message and Objective
The effectiveness of their internet marketing strategies should be driven by specific marketing objectives established from the end result.
Nav Optimizing PPC Campaigns For Success
Are you spending money to bring just anybody to your website or visitors ready to buy from you? Think about it.
Nav Targeting Usage Demographics to Increase Paid Search Conversions
By understanding usage demographics for the search engines, a web marketer can develop a relevant message and target an ad placement that most effectively connects and converts.
RELATED NEWS
News Post Digital Marketing Agency, fishbat, discusses 6 Ways to Boost Online Audience Engagement with Your Company
TRIBECA, N.Y., Oct. 20, 2017 /PRNewswire-iReach/ -- fishbat, a leading digital marketing agency which combines proven digital...
News Post OuterBox Grows Q3 Revenue by 83% and Projects Seven-Figure 2017 Growth
OuterBox, a nationwide leader in eCommerce web design and eCommerce SEO services continues growth.
News Post LoanCare Leveraging DocMagic's eVault Technology for Servicing
VIRGINIA BEACH, Va., Oct. 20, 2017 /PRNewswire/ -- LoanCare, a ServiceLink company, announced today that it has begun utilizi...
News Post Generali Global Assistance Promotes Identity Protection As National Cyber Security Awareness Month Partner
Company presents at National Cyber Security Alliance and Nasdaq Cybersecurity Summit
News Post Polystar Acquires P-OSS to Help Communications Service Providers Deliver and Manage Network Services and Customer Experience
STOCKHOLM, October 20, 2017 /PRNewswire/ -- Polystar [http://www.polystar.com ], a leading supplier of Customer Experience Ma...
Submit News | View More NewsView more news
RELATED CLASSIFIED ADS
Classified Ad HTML TAGGING PROJECT CONVERSION AVAILABLE
We have developed HTML Tagging Conversion software which can convert any TIFF Frech Srcipt Image to ...
Classified Ad Automated Web Advertising For Your Biz/Products
Hello, Ad Post Pro offers automated video campaigns, advertising for your business/product, automate ...
Classified Ad Top advertising agencies in India
Aquarius Promotions Pvt. Ltd. is one of the most rapidly growing advertising agency in India. With a ...
Classified Ad Outdoor Advertising Agency Dubai
http://smartbaba.aeSmart Baba is Middle East’s regional http://smartbaba.ae/services/top-outdoor-m ...
Classified Ad Affordable SEO Packages Marketing Optimization Exp
Affordable SEO Packages Marketing Optimization Expert For Small Business. We offer Affordable, cost ...
Post Free Ad | View More View more classifieds
RELATED FORUM POSTS
Forum Post Using click tracking for tracking advertiser links
You can use click tracking for recording clicks to your advertiser's websites. With the Plat ...
Forum Post HTML TAGGING PROJECT CONVERSION 100% QUALITY
We can process Image/TIF/GIF files to html format. We have developed HTML Tagging Conversion Softwa ...
Forum Post How to setup link tracking?
Here are the simple steps to create a link and test the tracking feature. Setting up links in you ...
Forum Post Myspace Bulletin & Forum Signature Tracking
Hello everyone, after working together with a programmer we have decided to recode and release the M ...
Forum Post Yahoo Search Marketing (Overture) Upgrades
Yahoo is upgrading its search marketing platform, which is used for text link ads (formerly Overture ...
Add New Post | View More View more forum posts
POPULAR ARTICLES
Nav How To Sell A Website
Nav Subdomain Configuration - How To Setup A Sub Domain
Nav Domain Configuration - How To Setup A Domain Name
Nav Website Layout - Tips & Tricks
Nav Round Robin DNS Load Balancing
Nav Introduction To Server Load Balancing
Nav Website Traffic & Revenue
Nav Tips On Using SubDomain
FEATURED NEWS | POPULAR NEWS
View More News View More News