Worse than just not knowing that these two numbers are important is the fact that even fewer website owners know what the CPV and VPV are for their *own* websites. And yet, they are critical to their success in marketing their businesses.
So, how do you measure your own CPV? It's the sum of what you spend in a given time period promoting your website, perhaps through Pay Per Click marketing, Search Engine Optimization, or other related expenses. Divide that by the number of visitors you get during that same time period, and you will have your CPV.
It's that simple.
An easy way to find your VPV is to take the total value of the sales you receive during a certain time period (gross), and divide that figure by the number of visitors on your website during the same time period. That number is your VPV.
Knowing the value of both your CPV and VPV let’s you determine the progress of your success. The greater the difference between these two numbers for your website - with the CPV lower than the VPV - the more money you make will be making!
In other words, let's say you've calculated that you can get a new visitor to your website for 10 cents (your CPV). And let's say you calculate that of 100 visitors during the same time period, you make 2 sales, each worth about $10. That means your VPV is 20 cents.
For every 10 cents you invest in your website's marketing, you get back 20 cents. For each dollar you invest, you get two back. For every hundred bucks, you get two hundred back.
You are doubling your money!
That's good, but don't stop there. You can always do better.
That's because, so long as you measure and test your performance, you’ve got nowhere to go but up!
Your job is now to drive those numbers as far apart as possible. By raising your VPV, and dropping your CPV, you are increasing your profit margin.
You can reduce your CPV by measuring and tuning your advertising, possibly through improving your Adwords performance by testing your ads and reducing your cost per click.
Or, you can increase your VPV by using the tools that a 1ShoppingCart powered system gives you.
For example, you could use Ad Trackers to track every unique marketing campaign you are running so you always know exactly where your buyers come from. Once you have mastered the Ad Trackers, you could also use Autoresponders to capture the name and email address of visitors who don't buy on their first visit. A good autoresponder sequence will get visitors to know, like, and trust you, and eventually come back to buy again and again, and thus increasing your VPV.
Want a real motivator to tip those fence-sitters to buy from your site? Consider delivering a 1ShoppingCart Coupon a week after their first visit!
After you've had some traffic, go back and look at your Ad Trackers. If you are sending your traffic through them, then the Ad Trackers will tell you your exact VPV without your having to calculate a thing! It's all right there, ready any time you want to take a look.
And, if you use these tools (ones that you already have!), you'll find that you almost can't help but increase your profit margins almost every day.
You may start by putting in a dollar and getting a dollar out. But if all goes well, you'll eventually discover that for each dollar you put in you get ten dollars out. And you won't be able to help but ask yourself, "How fast can I spend a Million Dollars?!?!"
Mark Widawer is a seasoned Internet Marketer and Google Adwords Qualified Professional. Mark's been working on the Net with electronic commerce since 1995, when he was with the Los Angeles Times. Perry Marshall, Alex Mandossian, and David Garfinkel all refer clients to Mark and his team to manage their Google Adwords campaigns. You can learn more about converting more of your visitors to buyers with Mark's new ebook, the Landing Page Cash Machine. |
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