Your website is an investment in your business and as such, you would want a return on that investment. We’ll look at website ROI in this article and why it is good business sense to invest time and money into your website.
First, let’s look at ROI (return on investment).
This is a pretty standard accounting term used in business. ROI is a difference between how much you invest, the return produced on your investment or how much you gain from the investment.
So we take the potential increase in sales and deduct the cost of the investment. This gives you the net gained. Now, divide the net gain by how much you invested. This calculates the ROI (return on investment).
List all the investments you want to make into your business (including investing in your website) with the projected ROI on each investment. Sort the list with the items with the most ROI at the top of the list.
Factors to keep in mind while creating your list are that fixing up or creating, a website is a distinct initial investment to improve sales while hiring a salesperson and/or buying link traffic will be re occurring expenses.
Now don’t economise on the budget for the website. This is a vital investment in your business and just as with everything else for your business; you want to make a good first impression which will help land the sale. Focus on adding features and information that boost the website, not just glitz and glamour, to improve the website ROI.
Your website is a 24/7 access to your information and has much more potential of attracting clients than a shop assistant who you provide commission or a salary to.
The old KISS principal applies here - improved ROI can be achieved by keeping things simple and making small changes in your website plan or your existing website.
There are a few things that can reduce your website ROI:
There are some particular areas to look at to increase website ROI:
To measure the success of your investment you need to compare what the website is now doing for you with what the goals were when you started.
As you can see from the points above, taking a serious look at your new or existing website then making the required changes and tweaks to match target audience you are going after is a smart investment in your business. Listening to feedback from visitors, analyizing the website stats and sales stats then tweaking the website can only improve your website ROI.