99% Of Ecommerce Owners Dont Know This

Written by Run2.
· 4 minute read

What Is Your Average Visitor Value AKA Earnings Per Click (EPC)?

Do you know what your average visitor value is? If you do then great! But how are you using this data to your advantage?

If you don’t know your earnings per click (EPC) and/or you don’t know what to do with this data then keep reading.

The 99% figure mentioned in the title of the post might be slightly exaggerated, although that’s how it seems when we speak to new ecommerce clients, but I bet it’s not too far off! Anyway, after reading this you will no longer be in the 99% so lets crack on.

Making A Profit Online Can Be Broken Down Into A Very Simple Formula:

Most business owners start out online and just want traffic traffic traffic as their first step. Well that’s all well and good and don’t get me wrong, you really want lots of targeted traffic but the main problem is that most of the time, business owners don’t have a Traffic Worthy Site.

Traffic = Sales

The very first thing you do if you want to give your marketing campaigns and online business a fighting chance of producing an ROI, is first build a traffic worthy site! Having a traffic worthy site is your key to success and the vast majority of websites, especially ecommerce sites, are not traffic worthy.

For example if you are paying £50 per visitor to your site, yet you only monetise this traffic at £30 per visitor then you are losing £20 per visitor to your site. More traffic would only make your problem worse and add to your losses so unless you could monetise your traffic to the tune of £50 or more then you are running at a loss.

“The first question you need to ask yourself is: How much can we spend to get a customer?”

 

This can be a crucially important number for you and it is worked out as follows:

Average Visitor Value = Gross Sales / Unique Visitors

If you do not know the average visitor value then you do not know if your campaign is running at a loss. The average visitor value is basically how much your clicks are worth to you and the maximum amount you can afford to pay per visit to break even. If you are buying traffic then you need to know this.

So lets have a look at an example. Say you have 1000 visitors to your site in a month and out of those 1000 visitors you make 10 sales totalling £1000. So:

Average Visitor Value = £1000 / 1000 = £1

So basically every visit you got that month was worth £1 to your business.

Everyone thinks traffic is the most important because without traffic there are no visitors and no sales but what’s worse is:

Traffic + Conversion = Sales

1000 + 0 = 0

The above has just cost you money so more traffic does not equal more sales! Your website needs to convert traffic in order to produce an ROI for your business.

“So How Do You Build A High Converting Website?”

Well if you have been in the digital marketing game for some time, then you will know where to start as you *should* have a trained eye by now so you will understand certain fundamental conversion elements and visitor behaviour. After building the traffic worthy website based on this, the next step (which again is something most people don’t do) is to test test test.

You test different images, titles, offers, layouts, calls to action, benefits and a whole host of other things until you refine your campaign and increase your conversions. Let me show you the power of this:

Traffic + Conversion = Sales

  • 10000 @ 1% = 100 sales
  • 10000 @ 3% = 300 sales

That’s triple the sales for the same cost and same amount of traffic!!!