“Why should I care about my visitor value?”
Let’s be honest, did this question run through your head when you read the title of this blog? If it did, don’t worry. You’re not alone. Many companies and brands do not understand the true importance of calculating their visitor value. Here’s a brief breakdown of why it’s important, and what to do once you’ve determined your website’s visitor value.
How to Calculate Your Visitor Value
Visitor value is exactly as it sounds: calculating the monetary value of each visitor to your webpage. Once calculated, this number can determine what marketing channels make sense for your campaign objective, help you optimize your advertisements and, eventually, increase your visitor value and overall sales. Calculating visitor value boils down to one simple formula:
Revenue / Total Web Visitors = Visitor Value
Now before you pull out your trusty calculator and begin crunching the numbers, make sure that the revenue generated and web visitors you’re looking at are all for the same amount of time, for example 6 months or 1 year.
What It Means
Interpreting your calculated visitor value breaks down into two simple categories:
- High web traffic with low conversions
- Low web traffic with high conversions
High Traffic With Low Conversions
What this means is that although your website has high impressions (the number of people physically seeing your page), not many users are purchasing your products or services. This could be due to your ads or other marketing efforts being served to unqualified audiences — people not actually interested in what you’re offering.
Low Traffic With High Conversions
I know what you’re thinking, “Why would I want lower traffic?” While it may seem frightening to lower your overall traffic, this can actually be a good thing. Serving advertisements to a smaller, more targeted audience, one that is interested in your product or service, means that if a user ends up on your site, he or she is more likely to make a purchase. This will increase your visitor value and your overall online sales.
The Next Steps
As mentioned before, calculating your visitor value can help you better market your products or services. Now this will require some additional steps, whether on an ad platform or a web traffic tracking program. Here are a few suggestions on how you can optimize your marketing based on your visitor value:
- Eliminate poor performing keywords – Increase your visitor value, and overall revenue by eliminating any keywords you find that are underperforming. This can be done by adding negative keywords or deleting poor performing keywords from your digital advertising platforms.
- Focus on successful sources – By analyzing the source of your web traffic, you can determine where users are accessing your website. These insights can include everything from location and time of day to specific sources, such as Facebook or Google Adwords. Once you’ve found a few successful sources, you can reinforce these by increasing budget or creating ads catered toward these platforms.
Whether your visitor value is low, high or somewhere in between, there is always room for improvement. By committing to some time, effort and many phases of trial and error, you can effectively increase your visitor value and overall sales generated on the web.