Your web ROI can be calculated by determining your potential sales increase minus the cost of investment, to figure out your net gain. Next, take the net gain and divide by the cost of investment to reach your ROI. Depending on your type of business, calculating your ROI may vary slightly from this equation. E-commerce sites are easier and more straightforward in the calculation. Increased sales can be figured directly by products sold through your website and could generate millions from direct revenue.
Web ROI for non e-commerce websites is a bit trickier to calculate in that you need to identify your key performance indicators (or KPIs) first. To do this, consider the ways your website contributes to your business (e.g., sales, leads, time saved, etc.), and then quantify that contribution. Maybe sales are made off-line but were directly affected by someone visiting your site. For example, they filled out a form on a landing page to request a sales call or downloaded an e-book. Your website can help you qualify leads, bring in and identify prospective clients, and increase your sales closing rate. Each of these tasks helps grow your business and can be assigned a dollar value to better calculate your ROI. Anders Hoff for Smashing Magazine created a helpful Google spreadsheet calculating tool.
Looking over lots of data points can be overwhelming for many business owners, especially since you’re wearing so many hats already. To help you better assess your website’s ROI, we’ve boiled it down to five factors you should identify and understand when determining your web ROI:
The best way to measure web ROI and analyze how well your website is achieving its goal is by using an analytic tool. Google Analytics is a free, comprehensive tool to measure a wide variety of statistics. It gives you valuable information about the needs and interests of the visitors to your site. You can create a custom dashboard that tracks whatever metrics are most important you and your business. It’s a good idea to filter out your own traffic and your employees’ traffic or your numbers will be skewed.
Using the right tools and the most important metrics will help you to better calculate the return on investment for your new website. It’s important for business leaders to go beyond having a “pretty” website to understanding how your web presence is working for you and what aspects can be improved to help you maximize performance.
If you have questions on calculating the ROI for your website, please contact us for more information.