This episode clarifies that Revenue Per Visitor (RPV), not just conversion rate, is the crucial metric for ecommerce growth. It breaks down RPV into its core components—conversion rate and average order value (AOV)—and argues for prioritizing AOV optimizations as a faster, more effective path to increasing RPV and ultimately, ROAS. The discussion emphasizes that optimizing for existing customer behavior (e.g., multi-buys) is often easier than solely focusing on conversion for new visitors.
Key takeaways
Prioritize Revenue Per Visitor (RPV) over isolated metrics like conversion rate, as RPV directly impacts ROAS.
Focus on increasing Average Order Value (AOV) as a primary lever for RPV growth, as it's often more straightforward to optimize than conversion rate.
Analyze customer purchase data to identify frequently bought together products (e.g., multi-buys of the same item for menswear) and implement strategies to facilitate these purchases.
Don't assume bundled product recommendations; instead, deeply analyze purchase patterns to discover natural buying behaviors and optimize for them.
Conduct regular website audits for conversion rate and AOV, as sites tend to 'drift' and un-optimize over time, revealing easy 'low-hanging fruit' improvements.
This week on the podcast, we’re breaking down one of the biggest reasons ecommerce brands struggle to scale with ads.
It’s not always a traffic problem.
It’s usually a revenue per visitor problem.
Most store owners focus on traffic or conversion rate, but revenue per visitor is the metric that really drives ROAS, profitability, and growth. In this episode: What revenue per visitor actually means How it directly impacts your ROAS and ad performance Why is the conversion rate alone is misleading The relationship between AOV, conversion rate, and revenue per visitor Why your ads might not be the real problem The easiest lever to improve revenue per visitor quickly Real examples of how improving this metric changes everything Why most ecommerce stores are under-optimised Fix this one number, and your entire store performs differently. P.S. Whenever you’re ready... here are 3 ways Ian and I can help you grow your ecommerce business: 1. Talk to us. Book a call with us and let's talk about accelerating your growth - https://go.hammersleybrothers.com/scheduleuk-ant 2. Grab a copy of our book - https://gohigh.hammersleybrothers.com/get-the-book
3. Join the Ultimate Guide To Ecommerce Facebook group and connect with e-commerce owners who are scaling too - https://www.facebook.com/groups/924567391291786
What does this episode say about conversion & cro?
Prioritize Revenue Per Visitor (RPV) over isolated metrics like conversion rate, as RPV directly impacts ROAS.
What does this episode say about paid acquisition?
Focus on increasing Average Order Value (AOV) as a primary lever for RPV growth, as it's often more straightforward to optimize than conversion rate.
What does this episode say about analytics & attribution?
Analyze customer purchase data to identify frequently bought together products (e.g., multi-buys of the same item for menswear) and implement strategies to facilitate these purchases.
What does this episode say about conversion & cro?
Don't assume bundled product recommendations; instead, deeply analyze purchase patterns to discover natural buying behaviors and optimize for them.
What does this episode say about conversion & cro?
Conduct regular website audits for conversion rate and AOV, as sites tend to 'drift' and un-optimize over time, revealing easy 'low-hanging fruit' improvements.
