The best metrics to help you analyze conversion rate optimization

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The best metrics to help you analyze conversion rate optimization

You can use the equation we described above to calculate your conversion rate, but that’s not the whole story. If you base all your decisions solely on conversion rate, you’re missing out on potential profits.

When you run a restaurant business, for example, it’s not enough to know how many people convert to the dishes you offer. You also need to know how much each customer spends in your restaurant, how many drinks they consume, and other metrics.

The same goes for online business. You gmx email list need to know the big picture if you want to maximize profits.

The value of customers' lives
How much money does your average customer spend with your business over the course of their relationship with you? That's essentially what Customer Lifetime Value is about.

If a customer buys one $99 item and never returns, their lifetime value is $99.

If that same person buys a $99 product every year for ten years, his customer lifetime value would be $990.

Ideally, you want to convert valuable customers who will stay with you for the long term.

You also need to track the value of each visitor.

Let's say you have 1,000 people visiting your site per week. Thirty of them buy $99 products. However, you can't just take those 30 people into account.

Your value per visitor is the total transaction value for that period ($2,970) divided by the total number of site visitors (1,000). So your total value per visitor is $2.97.