In order for your site to become profitable, you need to know the metrics that help make the right decisions. Starting with the ROI.
The ROI, what is it?
The acronym ROI comes from the English term “return on investment”, literally the “return on investment”. In web marketing, the ROI quite simply determines the profitability of your website over a given period..
The calculation method appears clear: you take your profit, that is to say your turnover deducted from your costs, which you divide by the total amount of your investments. Multiply the result by one hundred to turn this ratio into a percentage.
ROI = [(chiffre d’affaires — coût d’investissement)/coût de l’investissement] x 100.
The three types of website costs
We classify the investment costs of a site, a blog or an e-commerce store in three sectors:
- Creation costs. They include the hosting and rental of the domain name;
- maintenance and operating expenses;
- optimization costs. These include in particular the SEO strategy.
As a web entrepreneur, you necessarily invest in these three categories. However, some find it difficult to monetize their website because the focus is not necessarily where it should be.
The impact of SEO on ROI
Real sinews of war, the SEO referencing method directly influences the profitability of your activity. The more a site is optimized, the more it appears in the top choices of Google.
The rest, you know it: traffic increases, customers increase. And your sales are exploding!
This is why a quality SEO strategy is essential. Patience, the results take a few months to take shape: draw up an initial assessment after a year.
Measure the return on investment of a website
Now is the time to measure your website’s ROI. Rest assured, the mathematical formula remains identical to that stated above. However, you are required to target a few indicators.
The ROI on a commercial site
Focus on completed transactions and total revenue. Other tools, which you will find on Google Analytics, help to decipher the reading of your ROI:
- The conversion rate. It is the proportion between the customers acquired and the number of people contacted (newsletter, emailing, etc.);
- the conversion rate is the percentage of sales versus visits. The higher it is, the more the return on investment swells;
- the average cost of an order.
The ROI on a showcase site
Showcase sites present a product without however offering it for sale. As a result, the ROI approach is different.
The primary objective remains to generate as many leads (contacts) as possible. Using, for example, a form to be completed on the site. Thus, a real estate agency takes its leads into account to calculate the ROI of its website. Here’s how to do it:
- Total the number of leads;
- then define the conversion rate, or the proportion of leads who subscribe to a sale;
- determine the average value invested by a client;
- multiply the number of leads by the conversion rate, then by the average value spent by a customer. You thus obtain your forecast turnover.
To finalize the ROI, subtract the investment costs then divide the result by the costs of the website.
ROI optimization in 4 steps
Is your ROI sailing by sight? Do not panic ! Thanks to these few proven techniques, your site will quickly find its true place: in front of your competitors.
Review your marketing strategy
Are your online sales plummeting? This is probably because of a deficit of new visitors. A good ROI depends on the ability to attract new users, so dust off your marketing strategy!
Among the multitude of solutions, consider a promotional campaign, a sponsorship proposal and increased dynamism on social networks.
Improve Your Site’s Organic Traffic With SEO
Appearing in position 0 of Google’s SERP seems impossible to you? Natural referencing, if it is based on a solid strategy, can however help you move towards this objective.
To achieve this, offer quality editorial content and SEO optimized. Do not hesitate to choose long tail queries, rather than stagnating on overly competitive subjects.
Finally, establish an active internal mesh on each of your pages. If the user is interested in your article, the chances of them clicking on one of your links increase.
Google considers sites with low bounce rates to be relevant.
Reduce the bounce rate by optimizing the user experience
Like a barometer, the bounce rate measures the percentage of visitors who do not stay on your website after browsing a single page. In addition to providing your site with qualitative content, pay attention to its ergonomics. The interface must provide a smooth and pleasant experience for the user.
Keep up to date with the latest web design trends. But above all, make your site responsive! More than two-thirds of Google searches are done on smartphones. If your support is not suitable for all screen resolutions, so many potential customers are going elsewhere.
Develop your notoriety with relevant netlinking
Another way to optimize your SEO is to place quality backlinks on blogs or friends sites, which deal with the same topic.
Do not hesitate to contact other web-entrepreneurs to offer them to write a guest article, in which you will include a backlink. Make sure your host has a solid reputation just like you. Your backlink will come out stronger, and your site will gain credibility.
Google’s algorithm remains very sensitive to this technique. This one can really take you a step further when it comes to organic traffic. Now is the time to roll up your sleeves; or contact us!