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What is Website ROI Anyway?

June 7, 2009 by info@hitechsol.net

The return on investment (ROI) of a website is the ratio of money gained or lost on your website versus the amount of money you have spent on the website project in whatever way you did.

How To Measure A Website ROI?

The ROI of a website can be measured in several ways and for several factors. A very abstract description of the factors involved in the ROI of a website is as follows.

  • Investment in the website

The question to ask here is where it is that you are spending money. In the case of a website, the following factors could be counted as the money spent on

  • Your search engine marketing initiatives including pay-per-click campaigns etc.
  • search engine optimization efforts whether they be in-house or outsourced
  • Direct marketing
  • web site development costs
  • Email Marketing
  • Affiliate Programs
  • or any other investment you have made to promote your website in one way or the other
  • Return from your website

The outputs or outcomes of your investments on the website project could be as follows.

  • Conversion
  • Revenue generation
  • leads
  • Customer satisfaction
  • Problem resolution rate etc.

Once you have calculated both the investment and outcomes of your website, you can calculate the ROI of your website by dividing the outcomes by the investment. Calculating the ROI seems to be a simple task.  However, the hardest part of the equation is to help your customers identify the outcome they want to see by investing in your web properties. Once that part is determined, it will be an easy shot to calculate the costs involved in the project.

How To Improve Your Website ROI?

There could be so many ways of improving the ROI of a website. However, the first and foremost important step in this regard is to gather data of the visitors who visit your website via any free or paid web analytics tool such as Google Analytics, brutally analyze what the data says, and then make recommendations on how to improve your website so that you can achieve your goals from it.

Category: Website ROI

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