Constructing a well-designed and informative website is critical for all businesses. No longer is a website simply about having an online presence - it needs to stand out in its design, content and navigation. It must function well and be attractive to users.
Importantly, your business needs a website that brings you results and success, therefore measuring your Return on Investment (ROI) assists in assessing the investment you have made in your website.
ROI is calculated as the profit made from your website, compared with what you have invested. Understanding how to measure and analyse your ROI can help ensure your website is performing as the best online sales and marketing tool possible.
Why Do You Need to Measure Website ROI?
ROI should be taken into account right at the beginning of building your website. Or, if you are going to redesign, factor in the best system to measure your ROI you can have. You are spending your hard-earned money on a website, so it needs to generate results and profit.
Being able to obtain information on where your website is functioning well, and where it isn’t, allows you to amend things as needed to get on the path to success. Being in business means putting money into things that will pay you back.
Simply put, having an effective process in place regarding your ROI can really impact your success.
How to Measure Website ROI
A common calculation for determining your ROI is your profit less your costs and is usually described as a percentage or a ratio. Once you have calculated your website ROI you can make adjustments to your site, so it begins to perform better - that is money well spent.
To measure the ROI of your website you will firstly need to know your website costs such as development, domain name and hosting, and any maintenance upkeep costs. There are many platforms available for measuring your ROI and one of the most popular is Google Analytics because it is accurate, effective and free to use.
Google Analytics gives you detailed data on the traffic to your website including how they found you and their behaviour once they clicked through to your site. Are they subscribing, purchasing a product or service, or contacting you? Did they come via social media or Google searches?
Stats also show which of your web pages are visited the most and which are least viewed, so you know where to focus your changes.
The Web Force 5 team have proven methods to assist you in creating the most effective website for your business. We offer options that provide elite website content management systems, branded marketing, SEO and in-built analytics reporting.
Measuring Website ROI Through Sources
With a focus on where your website visitors have found you, whether that is directly, organically or from referrals, gives insight you can use to maximise both new and returning website traffic.
You can improve your organic traffic by working on your website content and improving your SEO techniques. Increase the number of referrals by using engaging content and using other companies’ social media, so people talk about you and share your brand.
E-commerce Solutions for High ROI
E-commerce ROI is the profit you make from a particular channel or marketing campaign. Simply monitoring your revenue isn’t enough - you want to make sure your marketing costs are worthwhile.
Measuring ROI for e-commerce sites is essential to be able to identify your best customers and use specific strategies to increase sales. You want to measure your ROI on the number of customers but also on the quality of your customers.
You may be focusing on promoting a new product, so you will have the figures you are spending on social media ads, blog posts and other promotions. You can use analytics to find out how many new customers you had from the advertising, and how many you had via other channels. Using these numbers will calculate your ROI for each channel and it will show which areas are performing and where you need to invest.
However, that will only show a customer’s first purchase. When calculating ROI, you want to know the full value of the customer relationship. Your Customer Lifetime Value (CLV) is how much a customer will spend over time.
To improve your e-commerce ROI, take steps to increase traffic as well as exploring new campaigns and channels. Monitor any new campaigns or channels and use the results to progress your marketing.
Getting reports on your ROI on a monthly basis is generally a good frequency to allow you to stay on top of things and adjust your website regularly. Also, if the results are good, then you have the confidence to continue to invest in that area.
Let Web Force 5 help develop and grow your business and assist with your ROI systems. Our team specialises in professional website design and provides expert feedback and guidance to improve website performances and achieve your company’s goals.
Give the team at Web Force 5 a call and speak to a specialist consultant for a free, no obligation chat.