An interesting KPI for retailers proposed by a reader

Francois Lane sent me this idea for a key performance indicator:

Here it is:Price of the Product x Conversion Rate of the Page = Average Revenue per Page View

This metric is interesting for e-commerce with large offering, like Amazon for example. It gives, in dollars, the revenue generated (on average) each time the product page is displayed. Then, a way to increase revenue of the store could be to promote on frontpage the highest RPPV products, then on product category pages, etc.

Or you could replace the price value with the “gross profit” of the product to maximise profit instead of revenue.

I love it! This kind of indicator would be slotted into the special category of “list” KPIs and would likely sort out the top ten revenue generating pages, allowing retailers to watch for gainers and losers.

Excellent suggestion, Francois! Are any of the rest of you reading this blog using this kind of KPI? If so, how has it been working for you?