Definition:
Profit per visitor (PPV) measures how much profit is generated on average from each visitor after accounting for product costs.
Why It Matters:
- Connects pricing decisions directly to profitability.
- Helps merchants evaluate marketing efficiency and advertising ROI.
- Useful for identifying price points that maximize profit rather than just revenue.
Example:
A product page receives 1,000 visitors and generates $2,000 in profit. The profit per visitor is $2.