Finding the ROI on Your Website and What it Means
You've redesigned your website and it's been up since the first of the year so now is the time to track, compile and analyze its data. Measuring your website's Return on Investment (ROI) is the key to assessing the effectiveness of your Internet marketing efforts.
Google Analytics, which is free, can be incredibly useful to track the behavior of the traffic to your site. It can tell you how many people visit, how they get there, how long they stay, where they live and how many fill out the contact me form. With this information, you can find the under-performing site content and it can help you determine your ROI.
In order to get a clear picture, we have to enter the world of numbers. Experts recommend using the following categories of information:
Number of Visitors: Track the volume of visitors to your website within a set period of time. Use a longer period of time for more accurate results.
Conversion Rate: A conversion happens when a client completes the contact form or sets up an appointment. Calculate the conversion rate by dividing the number of conversions by the total number of site visits.
Leads: Visitors times Conversion Rate = Leads. Knowing this figure can help you determine whether what you're doing is effective or not. (Example: 4500 visitors x 2% = 90 leads)
Closing Rate: Divide the number of people who buy your service by the number of visitors. Example: 100 sales divided by 5000 visitors equals a 2% closing rate. Experts say 1 to 3% is good.
Lifetime Value: Lifetime value is how much money the client brings in over the course of time. The client who needs frequent legal services is worth more.
Delivery Costs: That figure is the cost of your website. It is a rough figure which includes the total development costs, if this is a new site and that cost has not already been accounted for, and the monthly costs of operating the website, which includes costs like hosting and any monthly fees for 3rd-party tools you use.
Calculate the ROI of Your Website:
The number we're seeking is the number of consumers that became clients solely through the website. This means they scanned your site, sent a contact me form or set up an appointment.
Once the information is collected you can calculate your website's ROI. Using the formula below will give you a rough idea:
ROI = (Sales - Cost)/Cost)
It's typically expressed as a percentage, so multiple your result by 100.
Figuring the ROI on your website helps you to make educated website decisions; keeping the things that work and reworking the areas that don't produce as well. Often small changes can make a big difference in your results.