Your company’s website is the online face of your business. It can leave a great first impression that converts consistently. However, if your website design is less than optimal, it can result in a loss of business. Before you consider a complete redesign of your website, it’s important to understand how to calculate the return on investment. Here are the steps you should follow to calculate website ROI.
The first part of your calculation is cost. Website design costs can vary widely. You have options from hiring a freelancer, a digital agency, or attempting the work yourself with DIY tools. The price you pay will be based on experience, the time required, design, and CMS platform. Cost is only one part of the ROI equation. You need to determine your expected results before you can know at what price point design services are worth it.
The exact results your website is targeting will vary based on your industry. Consider the primary purpose of your website. If you have a product-based business, it can be a direct increase in sales. If you have a service-based business, your desired result can be lead generation. Frame your desired results as an increased conversion rate due to the new website. A good equation to use is website traffic multiplied by conversion rate to equal results. This way you will have a number to put on the other side of your ROI equation.
Another consideration when designing a website is the lifespan of the project. The longer the site can continue producing results for your business, the better ROI you will have. Building a site that cannot stand the test of time, thus requiring multiple redesigns every few years will dramatically decrease your ROI. This means creating a responsive design that supports mobile use, for the devices of now and the devices of the future. You should strive to create a website that is simple to navigate, keeping your customer’s needs in mind at all times.
Once you know the results your website is targeting, you’ll be better able to categorize the price quotes you’ve received. Freelancers and digital agencies should be able to estimate the increased conversion rate to expect with their design. Use that conversion rate to calculate your increased profits from the new website. Then you have all the numbers needed to use a basic ROI equation.
Nailing your website design can result in huge returns for your business. Use these steps to help calculate the ROI for your website.