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How to Increase Average Revenue Per Visitor (ARPV).

When was the last time you visited a new website and made a purchase? What struck you about the website…

How to Increase Average Revenue Per Visitor (ARPV)

12th December 2022

When was the last time you visited a new website and made a purchase? What struck you about the website that led you to buy something?

We think we know why.

We’re willing to bet the website was engaging, relatable, and offered products that helped you solve a problem.

We’re willing to bet that you had a smooth user experience and that you saw unique value in the products the website offered. In fact, you might’ve even felt like the products were designed specifically with you in mind.

In other words, personalisation was the spark that pushed you to make a purchase — and you can use that lesson to boost your own website’s Average Revenue Per Visitor rate, too.

If you’re ready to keep new visitors on your site longer and create solutions that’ll increase their average value, we’re here to help.

In today’s article, you’ll learn more about what Average Revenue Per Visitor means and why it matters. You’ll also learn how to increase your Average Revenue Per Visitor rate in just a few simple steps.

Ready to learn more?

Let’s begin.

What does Average Revenue Per Visitor mean and why does it matter?

Average Revenue Per Visitor, sometimes called ARPV or ARPU, is a rate that measures the amount of money your business generates from each new site visitor.

ARPV differs from conversion rate in that it tracks the actual value of each new visitor instead of the number of users that convert.

Brands use ARPV rates to track their marketing and website health.

A low ARPV rate may indicate that your marketing and website efforts aren’t tailored enough to your target audience. A high ARPV rate, on the other hand, means you’re onto something — your marketing leaves new visitors feeling engaged and eager to buy.

Understanding your ARPV rate is crucial to taking advantage of low-hanging fruit you could easily miss. While your repeat customers may be the bread and butter of your business, they’re not the only opportunity you have to boost revenue.

Let’s take a look at how to calculate ARPV and understand how much each new visitor contributes to your bottom line.

How to calculate ARPV

To calculate ARPV, you need to divide the total revenue earned during a specific time frame by the total number of visitors during that same period.

Here’s the formula:

So, if your site generated $150,000 during the Spring quarter, and 5,000 people visited your site during that time, then your ARPV would be $30.

Here’s how that breaks down:

150,000 / 5,000 = $30 per visitor

In other words, you earned $30 for every new user during the Spring quarter. By comparing this number against your ARPV goals, you can learn how to better tailor your product offers and marketing strategy to your target audience and boost revenue.

How to increase Average Revenue Per Visitor in 4 simple steps:

Now that we’ve laid the groundwork, let’s take a look at how to increase your ARPV in four simple steps.

1. Outline your goals

You can’t plan solutions without a long-term vision.

In this step, get clear on your goals and priorities.

What specific ARPV would you like to aim for and why? How can hitting this number help you grow your business?

Here are some other questions to ask yourself:

How do I want visitors to engage with my website?

What key products do new visitors flock to?

How can I personalise my website to serve new visitors?

2. Identify your current ARPV challenges

Use the formula we’ve provided to check your current ARPV rate.

How does your current rate stack up against your goals? Is your rate severely low, average, or does it almost hit the mark?

Lastly, what challenges can you identify that are negatively affecting your ARPV? For instance, does your site load too slowly? Are your site’s featured products geared more toward repeat customers versus new customers?

Be sure to list every challenge and possible roadblock you can identify.

3. Brainstorm solutions to solve ARPV challenges

In this step, brainstorm solutions for every ARPV challenge you listed. Next, create a strategic plan geared toward hitting your goals and solving every challenge on your list.

To give you a leg up, here are some potential solutions you can use to solve ARPV challenges:

1. Use content, guides, and walkthroughs to boost understanding

Sometimes visitors don’t purchase your products simply because they don’t know how to use them.

You could have the best products in the world, but if your customers don’t know how to use them or how they add value, then you’ll struggle to sell them.

The solution? Guides, informative content and walkthroughs, like this guide on DVIRs.

You can also use FAQ pages to help visitors get all of their questions answered without having to leave your site.

For example, this FAQ page on Colocation Data Center is extensive and explains who needs this data center facility, why they need it, and how it’s useful. FAQ pages are especially important if you sell complex products.

You can also create tutorials, blog posts, and a knowledge base section so new visitors can fully understand your products before making a purchase. You can also design engaging infographics using design templates for those who prefer visual aids.

2. Encourage more purchases with discounts

A simple way to encourage more purchases is to offer discounts for first-time customers, like this mannequin online store does, here:

If you choose to take advantage of this tip, make sure the discount is easy to spot and includes a field to collect visitor contact information.

This way, you not only get a sale, but you also get the opportunity to continue to market to them via email and other channels.

3. Highlight products new customers love

If you’ve seen a proven track record of products that new customers love, but you’re still offering other products, what gives?

Focus on highlighting products you know new customers will buy again and again.

4. Target customers carefully

When using paid ads, such as Facebook or Google Ads, be sure to target your most valuable customers.

You can segment your audience by customer type, where they are in the funnel, or by pain point solutions.

Be sure to also get clear on your target audience’s messaging preferences and tailor your ad copy accordingly.

A customer data platform like Segment or its alternatives will enable you to analyze user behavior and personalize your communication accordingly to increase upsells and cross-sells.

5. Use social proof to build trust

How many times have you asked for a restaurant recommendation, movie recommendation, or tips on where to stay for your next vacation?

There’s a good reason for that.

It’s easier to invest if you know other people have had good experiences making the same investment.

To use social proof to build trust, we recommend collecting testimonials, customer feedback, and, if possible, customer videos.

Use these elements on your website and social media channels to decrease the barrier to entry and promote more visitor sales.

6. Perfect user experience

Visitor-centric products? Check. Tailored messaging? Check. Targeted ads? Check.

But if your user experience is poor, you can still expect a low ARPV.

And the reason is simple.

Do you feel tempted to stay on a website page that’s having trouble loading?

Are you willing to be patient enough to wait for a chatbot to respond to an important question you have?

Probably not.

When you visit a new site, you expect it to load perfectly and quickly. You expect to be able to navigate throughout the page and tabs with ease. And you definitely expect to be able to get ahold of someone if you have an important question.

When working to improve your site’s user experience, put yourself in your customers’ shoes and ask yourself, what user experience issues would hinder you from making a purchase?

4. Use a visitor relationship management platform

And finally, did you know you can use a visitor relationship management platform to increase your ARPV? A bit of research will tell you that Admiral Visitor Relationship Management (VRM) platform is one of the best solutions to date.

With AI and machine learning, and their astute Customer Love team, they help publishers create journeys that walk visitors along multiple touchpoints to build relationships and revenue.

From checking if a visitor is using an adblocker (and giving them an incentive to turn it off) to growing your email subscribers to offering site memberships, their solutions can help maximize your ARPV.

With their platform, we help you engage the right visitors with the right offer, at the right time.

Wrap up

And that’s it!

We hope this article has inspired you to learn how new site visitors contribute to your bottom line and how to create solutions to boost your ARPV rate.

Are you ready to increase your Average Revenue Per Visitor?

With a plan, the right tools, and consistent action, you’ll be on your way to becoming a revenue making machine.

Categories: Articles, Franchise

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