Websites are an investment. Business owners and executives want to look at dollars they spend to see how many dollars it brings in. Or in other terms, ROI. If you can justify the cost based on the value that it turns into, spending the money becomes an easy decision.
For eCommerce companies, it’s easier to put a dollar value on your website. How much money does it bring in from selling your stuff is a pretty easy question to answer. That shouldn’t be the entirety of the equation, but it’s a quick and fast number to get to.
What about non-eCommerce websites? If you don’t transact on your site, how do you get to that dollar value? Since the site is not driving business online, it needs to drive business offline. If your website does neither… you might be in trouble. Tracking business growth offline that came as a result of your online marketing efforts is a tricky task, but it’s one that can be accomplished with math. Let’s look at a simplified example of how you can use your website analytics to start tracking the value of your website and digital marketing efforts.
To do this, you’re going to need to know some numbers about your business.
Doing the math
Let’s pretend you own a bicycle shop and you’ve learned over the years that about 10% of the people that walk through your door end up buying a bike. You’ve also learned that the average purchase amount for transaction is about $600. So this is our foundation: