Average Revenue Per Visitor (ARPV), also known as Revenue Per Visitor (RPV), measures the average amount of revenue generated from each visitor. It’s a metric for understanding the overall effectiveness of your site in generating revenue from its traffic, as it captures both conversion rate and average order value in a single metric.
How ARPV is Calculated
The formula to calculate ARPV is:
ARPV = Total Revenue / Total Visitors
Total Revenue: The total revenue generated over a specific period (e.g., daily, weekly, monthly).
Total Visitors: The total number of unique visitors to the site during the same period.
For example, if your site generated $10,000 in revenue from 2,000 visitors in a month, the ARPV would be:
ARPV = $10,000 / 2,000 = $5
This means that, on average, each visitor generated $5 in revenue.
Why ARPV Matters
ARPV gives an insight of how effectively the site is converting traffic into revenue. By measuring the revenue per visitor, you can get an overall assessment of how both conversion rate and order value are impacting revenue.
Factors Affecting ARPV:
Conversion Rate: Higher conversion rates increase ARPV because more visitors are making purchases.
Average Order Value (AOV): Higher AOV increases ARPV because customers are spending more per transaction.
Thus, ARPV is a holistic metric that shows the combined impact of both metrics on overall revenue per visitor.
Limitations of Using ARPV Alone
While ARPV is a valuable metric, it’s often best used in combination with other metrics:
Doesn’t Provide Detailed Insights into Conversion or AOV Separately: ARPV alone won’t reveal if an increase is due to higher conversion or AOV, so it’s best paired with conversion rate and AOV metrics to understand the underlying cause.
May Be Affected by Outliers: Like other averages, ARPV can be skewed by extreme values. Monitoring median revenue per visitor can sometimes provide additional context.
Significance calculation for ARPV
Symplify Conversion use a t-test with the Welch-Satterthwaite equation to do the significance calculation of the difference for ARPV.