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Just like you, we’re looking forward to the beginning of another year. As a tribute to one of the most enduring traditions around this time, we asked online optimization experts this question: “Which website optimization effort/s businesses should focus their skills and resources on next year to improve conversions (and the bottomline)?” We’re publishing their answers the entire month in the countdown to 2013 so stay tuned for more resolution must-haves in our upcoming posts 😉
Today’s CRO resolution must-have is from Nik Rajpal, VP of Client Services at Exclusive Concepts:
Measuring the value of your decisions using the metric revenue per visit. Each change you make to your site, no matter how genius (or stupid) it may appear to you, has a finite positive or negative value against your current revenue per visit.
How does it work? Say your current revenue is $100mm – and you have 200mm visits to your site – then, your revenue per visit is $0.50. When you test a change on your site and the revenue per visit of the test variation is $0.75, then you have just netted a +$0.25 revenue per visit. In other words, your business has just grown by 50%!
Why revenue per visit and not conversion rate? Well, if your margins are set to a fixed %, then more revenue per visit is always going to make you more profit. Sometimes that will come as a result of a decrease in conversion rate – but a significant counter-increase in AOV.
Measure this against all changes on your site throughout 2013, and only rely on results that have at least a 99% confidence level. When your additional revenue per visit of a change is -$.01 or less, don’t hardcode it – if it’s $.01 or more, then hardcode it. After 12 months of only committing to changes that increase your revenue per visit, you will come out the other end of 2013 with a site that generates much higher revenue from existing traffic.
As a result, you will be able to invest more competitively in SEO, PPC and email. You will know more about your audience than your competitors, baking key findings back into all of your marketing initiatives.
Most importantly, you’ll be putting your trust in the only thing that you can count on in the conversion optimization world these days – statistically significant data.
More about Nik
As the VP of Client Services, Nik has been building the retainer marketing business of Exclusive Concepts since 2008, achieving Inc 5000 level growth each year since. He manages a team of 30 that cater to an ecommerce clientele of over 150.
Mr. Rajpal is instrumental in developing, managing and marketing services that cover 4 key areas of his expertise: SEO, PPC, conversion and email marketing. Nik is a noted speaker and public figure in the ecommerce space, primarily regarding his expertise in SEO and consumer behavior.
Prior to Exclusive Concepts, Nik was the SEO Manager at a top 5 poker site, president of a hip hop record label, and digital marketer in the non-profit sector. He enjoys making music, weight training and cooking.
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