Benchmarks are essential for any business. We’ll discuss the benefits of conversion rate optimization shortly, but first, you need to know why you should measure conversion rates.
Imagine if you owned a buffet restaurant and you served a variety of dishes on a hot plate in the center of the restaurant and guests could help themselves to whatever dish they wanted.
If you’re not careful, your business can easily tank.
The best metrics to help you analyze conversion rate optimization
You can calculate your conversion rat cayman islands phone number librarye using the formula we described above, but that’s not the whole story. If you make all of your decisions based solely on conversion rate, you’re missing out on potential profits.
When you manage a restaurant business, for example, it is not enough to know how many people like the dishes you serve. You also need to know how much money each customer spends in your restaurant, how many drinks they drink, and other indicators.
The same is true for online businesses. If you want to maximize profits, you need to understand the big picture.
Customer Lifetime Value
How much does your average customer spend how to improve your use of twitter? on average with your business during the time they work with you? This is essentially what Customer Lifetime Value is about.
If a customer buys an item worth $99 and never returns, his or her lifetime value is $99.
If the same person buys $99 worth of product every year for ten years, his customer lifetime value becomes $990.
Ideally, you want to convert high-value customers who will stay for the long term.
You also need to track the value of each visitor.
Let’s say 1,000 people visit your website in resource data a week. 99 of them buy $30 worth of products. However, you can’t just consider these 1,000 people.
The value of each visitor is the total value of transactions during the period ($2,970) divided by the total number of site visitors (1,000). This gives a total value of $2.97 per visitor.