Conversion Value per Click ( CVPC)
Today, I wanted to spotlight an underappreciated metric: Conversion Value per Click. CVPC calculates the average value you earn from each click. Essentially, it combines your Conversion Rate and Average Order Value into a single, impactful metric. The higher your CVPC, the more room you have in your bidding strategy during auctions. Conversely, if your CVPC is very low, it becomes challenging to compete effectively or even participate in the auction.
While metrics like ACOS and ROAS incorporate costs, complicating the assessment of their effectiveness, CVPC zeroes in on the value generated, providing clearer insights for optimization.
For marketers, it’s crucial to focus on boosting your CVPC. Here are several strategies to consider:
> Elevate your AOV : Recommend complementary products at checkout. Consider testing a higher minimum order value for free shipping.
> Enhance your CVR : Streamline the checkout process, improve landing page speed, and expand payment options.
> Maximize Contribution Margin : Introduce white-label products with higher margins into your assortment and promote them to your customers.
> Segmentation : Segment pages or audiences based on their expected Conversion Value per Click (CVPC). Evaluate whether advertising to segments with a low expected CVPC is cost-effective.
#Google #GoogleAds #ppcchat #onlineadvertising #advertising
