When it comes to increasing revenue, we don’t believe in guessing. That’s why we pay close attention to our key performance indicators (KPI’s). By understanding our KPI’s, we sold over $1.5 million dollars worth of sports tickets in twelve months.
1. We Knew the Value of Each Visitor:
Consider these numbers:
- Revenue per visitor: $0.10
- Revenue Goal: $100,000 in new revenue
- Traffic Needed: 1,000,000 visitors (100,000/.10)
Knowing the positive correlations between these rates helped us project what we needed to do in order to meet our revenue goals. The question was no longer “how do we sell an additional $100,000 online next year.” Instead, we asked “how do we drive an additional 1 million visitors to the website next year” which—when answered—answered our original question.
2. We Knew the Value of Each Visitor From a Specific Marketing Channel:
In addition to enabling us to calculate revenue per visitor, knowing our KPI’s allowed us to test our partner channels to see where we monetized the traffic. Through analytics we could tell how much traffic we sent to partner sites and the number of sales and revenue we made from those partners. We were able to track the revenue in order to compare different traffic sources (organic, social, referral) to determine which channel proved the most profitable. We quickly realized that having a partner with the highest commission rate was not as important as a partner with a high conversion rate.
With KPI’s on our side, we tested, planned, and executed a strategy that enabled us to sell over $1.5 million worth of sports tickets worldwide in one year.
Do you know your KPI’s? Do you know the value of a visitor to your website? Ready to find out?