Do you even know what the average value of each visitor to your site is?

As usual I am faintly appalled by anyone who thinks that the single, overwhelmingly important issue about your site is what position in Google it is.  For a start – do you know whether it is at number one for the keywords your customers and target market actually type into Google to find this kind of site? – or is it at number one for the keywords that you yourself would search for it under?

Secondly do you know what the conversion rate of your site is, in terms of numbers of visitors converted into profitable action takers?  If you don’t know this then why expend huge time and effort pouring people into the top of the sales funnel if they all escape it before they get to the bucket at the end labelled “profitable transaction”?

And finally, do you know the “AVOV” of your site? – AVOV is another self-coined TLA (“Three Letter Acronym”) which stands for “Average Value of Visitor”.  I am willing to bet that the vast majority of sites have no earthly idea what their AVOV is, as to get to it they must also know the conversion rate of their site and the average profit of each transaction on their site, which quite frankly most people do not know exist, let alone why they are so important.

However – if you do know these two figures then AVOV is easy to work out; total number of visitors divided by the conversion rate of your site times the average profit of your site.

So; if you get 100 visitors a day at a conversion rate of 1% and each sale is worth £10 in profit then the value of each visitor is 10 pence.  Don’t forget – we are talking about the average value of each visitor – not each sale.

This will mean you can spend 9 pence per visitor getting them to your site, on whatever works: typically PPC, preferably PCA, perhaps banners or offline advertising.  However the minute you spend 10 pence or more you will be losing money.

Ask yourself this: for whatever size site you run: do you know the average value of each visitor? – if not why are you spending more on one part of the equation (that is getting more people to visit the site) without improving the other critical element – that is the conversion rate of the site?