Visitor value is too low

Does too low mean you cannot make any money? Try and answer the following questions.

Check your pricing? Can you charge more?  Have you carried out a competitor analysis ?

Check shipping rate structure?

Check your analytics – are you losing people on checkout?  If so, see ways to improve conversion rates.

Check fulfilment efficiency? Can your costs be lowered? Can your service be enhanced?

We would recommend to people at this stage to evaluate your business model. Take this example.

Widget Sales Ltd.

• 10,000 visitors
• 2% conversion rate
• 34 euro is the average sale
• 15% gross margin
• Total sales per month : €200
• Total Revenue per month: €6,800
• Total Gross  Profit per month: €1,020
• Value per visitor: 10 cent

So what’s wrong with this model?

• Lots of traffic (Is it the right traffic?)
• Conversion rate is low (Can this be improved – how?)
• Average sale is low (Can this be improved – how?)
• Gross margin is low (Can this be improved – how?)

These are the key figures you need to consider, how can you you influence any of these? Focus on these elements and then focus on tactics like successful email marketing, social media, search engine optimisation and other elements.

Have you got a Question?