you giving your website the credit it deserves?
article will be of most interest to those Matamata 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
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 example:
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
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
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 cash.