In marketing, there are approximately one Brazillion metrics you can track.
- Views
- Likes
- Follows
- Comments
- Tags
- Pageviews
- Bounce Rate
- Conversion Rate
- etc.
I could go on and on but you get the idea.
I suggest that if you could only choose ONE “north star” metric to optimize for, you should strongly consider Revenue Per Visitor (RPV).
How is RPV calculated?
RPV is determined by dividing total revenue by the number of visitors in a period of time.
Why is RPV such a good metric?
RPV is an amazing metrics because it takes into account both “Conversion Rate” and “Average Order Value”.
If Conversion Rate goes up, then RPV goes up (generally).
If AOV goes up, then RPV goes up (generally).
But if raising your average order value hurts your conversion rate too much, you’d see that reflected in your RPV going down.
Or if, in order to get your conversion rate up, you had to lower your AOV, you’d see that reflected in your RPV going down.
Can’t I Just Get More Traffic?
More traffic is (nearly) always good. But the longer you’re in business, the harder it is to get increasing amounts of traffic over time. That traffic will become more-and-more expensive and less-and-less qualified.
BUT if you can improve RPV by improving your conversion rate and AOV, then you’ll be able to afford getting more and more traffic.