you giving your website the credit it deserves?
article will be of most interest to those Morrinsville
advertisers who also have their own domain name websites)
same old story … an underperforming website … a desire
to make the site more effective and a small budget.
question: What is meant by "more effective"? We have
learnt that most clients tend to focus on just a fraction
of their website’s value.
you are struggling to justify your website’s effectiveness
and haven’t yet identified and quantified your website’s
value in dollars, it’s maybe time you did.
comes in two flavours: additional revenue and reduced
typically look at two types of value behaviours: direct
on the direct ones:
How much revenue does the site generate through direct
sales? Try looking at your gross online margin. How
does it compare to offline sales?
Next, estimate the lifetime value of new customers
finding you via the Internet. Maybe they began their
relationship your business with a small purchase,
but understanding and quantifying what that may lead
to is a key exercise.
Generating leads, not sales, may be your site's primary
goal. Rather than just look at the raw number of leads,
try to quantify their value, too. Solid offline tracking
can show you close rates as well as average sales
values of the online leads. If your site generates
an average 100 leads per month and 20 of them end
up in sales averaging $500 each, a website’s lead
value can be calculated at $100: (average leads
closed divided by total leads x average revenue per
sale = lead value)
Be sure to give credit for that.
service. Your website can be an effective way
to service customers at a much lower cost than offline
options. If you want to calculate the impact of your
website on overall customer service costs, firstly,
you have to know your baseline costs. For example
average per-call call centre costs, can range from
$3.50 to well over $10, where as answering an email
can cost $1.50 to $3.50 or more. The cost of a site-based
service transaction is usually well under $1.
So do the maths and understand the volume of each
correspondence type and the related cost. Then you
can determine the efficiencies of your website. For
centre: 1,000 calls x $5.00 per call = $5,000
500 email messages x $3.00 per email = $1,500
800 help visits x $0.30 per visit = $240
support costs: $6,740
cost per touch: $2.93 (total costs divided by
total support touches)
are examples of direct values that are fairly easy
to quantify for many sites. They are also quick exercises
to provide the ammunition you may need to justify
your website‘s effectiveness.
forget that equally important are indirect value measurements,
such as your website’s value as a research/reference
tool, as a promotional and awareness tool, enhancing
customer satisfaction, and much more.
should, of course, consider all the different ways
your website impacts on your bottom line, but a good
place to start is to calculate that impact in hard