Sample Revenue Model - Web Analytics Demystified - Michele Kiss

	A	B	C	D	E
1	Sample Revenue Model		Legend:
2	All numbers are dummy data, for example purposes		Black	Current data
3			Blue	Assumption - can be adjusted and estimates will update
4			Purple	Calculation based on current values and assumptions (do not touch)
5	PROJECT: Add videos to product page
6					Notes:
7	[Current]	Website traffic	1,000,000	visits/month	This is our current average traffic
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9	Getting to the product page
10	[Current]	Conversion to product page	15%	of site visits	Users won't see the videos until they are on the product page, so we assume no change in the number of users going to the product page
11	[Current]	Visits to product page	150,000	visits/month
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13	Viewing photos
14	[Current]	Percent of product page visits that click a photo	25%	of product page visits	This is the current rate at which users click to view photo details
15	[Current]	Conversion rate from product page to cart, where the user clicked a photo	55%	of product page visits	This is the current conversion for those users
16	[Current]	(Note: Conversion rate from product page to cart, overall)	40%	of product page visits	Note: The conversion to cart for those who click photos (55%) is higher than the rate overall (40%.) This is not being actively used in calculations, but is just for stakeholder information. However, we could have chosen to just use this generic conversion to cart and adjusted this.
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18	Viewing Videos
19	[Assumed]	Percent of incremental product page visits that will view the video	5%	of product page visits	We assume that a percentage of users will view video, that would NOT have clicked photo details. These are the new incremental conversions we'll get. This doesn't include the 25% that already viewed photos, that will also view videos, and will convert at a higher rate. (Those are counted below)
20	[Calculated]	Number of incremental product page visits that will view the video	7,500	visits/month
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22	Conversion to Cart
23	[Assumed]	New conversion rate from product to cart, for users who clicked a photo or viewed a video	57%	of product page visits	We also assume that for those already clicking photo details, plus those that view the video, conversion to cart will be slightly higher due to the videos adding additional persuasion
24	[Calculated]	Number of incremental video viewers who will convert to cart	4,275
25	[Calculated]	Additional conversions of photo+video viewers to cart from higher conversion	750		These are the additional conversions from users who were alrealdy clicking photos, but now convert to cart at a slightly higher rate
26	[Calculated]	Total additional users to the cart	5,025
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28	Conversion from Cart to Purchase
29	[Current]	Conversion from cart to purchase	60%	of cart visits convert to purchase	We are NOT assuming any increases once the users are in the cart, though there is a placeholder to add that if needed
30	[Assumed]	Increased conversion from cart to purchase due to videos	0%	increase
31	[Calculated]	Number of incremental purchases from video viewers	3,015	purchases/month	This is the total new incremental purchases, based on both 1) Users who view the video that weren't viewing photos and 2) The increased conversion for users who were already seeing the photos
32	[Current]	Average Order Value (AOV)	$50
33	[Assumed]	Increased AOV	0%	increase	We are NOT assuming any increase in AOV, though there is a placeholder to add that assumption
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36		Additional revenue per month due to videos	$150,750	(incremental)
37		Additional revenue per year due to videos	$1,809,000	(incremental)
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