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How do I know the roi of my website?

January 26, 2017 Tips&Tricks
Comment connaitre le retour sur investissement de mon site internet ?

Whether you are a hairdresser, restaurateur or accountant, it is essential to anticipate the profitability of your site before embarking on the digital adventure. Will you get your starting bet back? How long will it take? How much will your site earn you (but also cost you)? How do you calculate your ROI? Here's just how to answer all these questions.

1. Quantify your goals

If you plan to have a "showcase" site to bring visibility to your activity, your goals will be measured by the number of visits and page views but also in the time spent by internet users on your site.
If you opt for a merchant site, the focus will also be on the number of sales and quote requests you will generate.

2. Assess your conversion rate

The profitability of a site is conditional on the proportion of contacts and/or requests for quotes from web media resulting in a sale or a signed quote.
If 40 contacts come from the site (contact form or email) and 10 materialize, the conversion rate will be 25% (10/ 40) x 100). In other words, 1/4 of the turnover will come from digital.

Good to know

ROI (for Return On Investment) – (Gains – Investment Costs) / Investment Costs

3. Calculate your forecast edifion

In the previous example, if each service is billed at an average of 500 euros HT, the turnover will be 5,000 euros (40 x 25) / 100 x 500).

4. Estimate the cost of creating your future site

Between its design/realization, its referencing (SEO service, Adwords campaign), content writing, maintenance and hosting costs, the expenses caused by your website will impact the profitability of your digital project. Each site has its own budget. But for a showcase site, the costs will vary between 600 and 6,500 euros on average. And from 1,750 to 50,000 euros for an e-commerce site…

5. Encrypt your Return on Investment

To calculate the return on investment (or ROI, you see…) of your web project, deduct from the turnover generated via the web the expenses related to the site, and then divide the result by those same expenses.
In our example, if 3,000 euros were spent on digital, every euro invested will yield 66 cents (5,000 – 3,000) / 3,000 – 0.66).

Good to know

Taking into account the commercial margin helps to refine the calculation of the ROI. For a gross gain of 2,000 euros and a 50% commercial margin, 1,000 euros will be released. The ROI will then fall to 0.33 (Marge/Budget "web").

Key points to remember:

  • Calculating your ROI allows you to visualize the profitability of a web project.
  • Reducing site costs and/or improving its processing rate will boost ROI.
  • Some sites do not immediately generate profits but value expertise or retain customers. It will therefore be difficult to apply the ROI to them.