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Website ROI (Return On Investment)

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).

 

What is 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).

 

Choosing to Invest in Your Website

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.

 

What Can Ruin Your Website ROI

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:

  1. Prioritise elements and features that give the best ROI. Don’t just focus on the visual elements of the website. You need information and features your new potential clients are looking for.
  2. Check your preferences at the door. The site needs to be constructed for your focus audience if you want it to make money for you. Just because you like something, doesn’t mean your prospective clients does. Involve others in what you have developed and be open to the feedback.
  3. Just because your competition is doing something, doesn’t mean you have to duplicate them. Being unique, being different that’s what people will take notice of.
  4. Don’t let your web designer’s take over. You should know YOUR business and a good web designer will be more concerned about what works for your prospective clients than forcing what’s in at the moment.
  5. Be sure to be clear on what you want in your website design when asking for a quote. The more research you do before, the better price you will get and the less chance for poor communications between you and your web designer.

 

Areas that could improve your website ROI

There are some particular areas to look at to increase website ROI:

  • Usability – if the website is easy to use then your visitors will be happy, stay longer and recommend your business to others.
  • Informative – providing all the information a potential customer needs to make the decision to buy can be the crux of making a sale.
  • Know your prospective clients –  Are you getting the idea that researching and knowing your target is very important yet?
  • Know your aims for the website. Is it to
  • Increase sales?
  • Reduce staffing costs?
  • Be a source of information for your clients?

 

So How Measure 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.

  • Are you getting the targeted traffic you set out to get?
  • Have your sales and/or leads increased?
  • Are you getting any feedback from visitors on what is working and what is not then taking the negative feedback and making the necessary changes?
  • When you look at your website stats, is the increase in website traffic converting to an increase in sales? More traffic isn’t any help if it’s not increasing your sales and/or leads.
  • If you have an e-commerce website, how’s your checkout rate? Are people completing the sale or abandoning the shopping cart?

 

Website ROI – It is Important

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.

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