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Make sure to investigate and optimize these metrics to improve your ad revenue. Average order value The average order value AOV metric indicates every dollar spent each time a customer purchases something from your website or app. AOV is a benchmark for customer behavior. Thus, its goal is to show you whether the target audience responds to your ad as you expect them to. Here’s how you calculate the average order value: average order value formula Theoretically, you want AOV to be as high as possible since it will mean more revenue and growth for your business.
There are a few additional strategies you can employ to increase your AOV: cross-selling upselling coupons and volume discounts fair return policy free shipping Also, consider tracking AOV along with other metrics, such as conversion rates and revenue per visitor RPV. This way, you philippines photo editor will have a fuller picture of how to grow ad revenue. Customer lifetime value Customer lifetime value CLV or CLTV is the total revenue a business can expect from a single customer throughout their relationship. Companies usually consider this metric in comparison.
To the predicted customer lifespan. You can calculate CLV using this formula: customer livetime value formula The customer lifetime value metric is as important as all other metrics in paid advertising since it helps you understand: the factors what you need to target your ideal customers how to reduce customer acquisition costs how to increase ad revenue how to build a stronger brand-customer relationship from the start To sum up, CLV is the metric that helps you understand how to promote your business through digital.
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