What's the ROI for your website?
Unfortunately, there isn’t an app for that (yet). And since all websites have unique goals, there is no cookie cutter method that provides an accurate ROI across all industries and for every type of organization. But, that doesn’t mean it isn’t a worthwhile exercise to evaluate the ROI you’re receiving from your website. Analytics are helpful for really examining behavior of visitors on your site and providing feedback over time. Combined with your sales stats, you got great information at your fingertips. Even if the numbers aren’t what you had hoped, by regularly measuring your ROI via a few select metrics, you’ll get a handle on what is and isn’t working and will be able to make the necessary adjustments. First, calculate your ROI. Then, examine your initial goals and progress. Lastly, take a look at the finer points and your feedback/response process.
1. ROI = (Gain from investment- Cost of investment)/Cost of Investment
In other words, what you’ve gained, less what you spent on your website, divided by that same cost figure. You’ll need to know what your average sale or average contract price is and how many you’ve closed since your site launched or the last upgrade.
2. Goals/Progress: Certainly, you had goals for your site before you even built it. One place to start is to see if you’re accomplishing those goals. List them out and see where you stand. Below are some examples:
- How is traffic?
- How are sales/leads/donations now? This is even more pertinent than just pure traffic numbers. If you have more traffic but fewer sales/conversions, you’re still not getting the return that you want.
3. Finer points/feedback: While the sales and traffic numbers are important, they don’t tell the whole story. Make sure you take a look at these factors, too:
- If you’re in e-commerce, checkout rates are a valuable metric. You’ll want an explanation and a fix if your abandoned cart rate is increasing.
- How are you collecting feedback? What is being done about it? Negative feedback can be the biggest opportunity to convert and impress.
By now, you should be armed with information to fine tune your online operation. Use those sales stats and analytics to really grow your business!