Monday, March 09, 2009

Increasing your Internet ROI

Last Thursday I was asked to be on a panel discussion at the BMA luncheon meeting talking about how to increase ROI from your Website. It was a great presentation and I had a lot of fun doing it. Members from the association said that it was one of the best events that they had in some time. I’m still getting emails and calls from the luncheon asking for additional information, so I thought we would address some topics on our BLOG.

First, let’s talk about what ROI actually means. It seems like lately it’s a term that a lot of people are tossing around lately without knowing the definition. Many people just use the term to mean a generally that their projects or Website is successful. But measuring success is critical.

This is an area that separates a lot of marketing professionals, especially those involved with Internet marketing. We discuss this issue with our clients and they’re well aware of ROI and what it means. Also, keep in mind if you’re talking to a financial person the term and calculation is a bit different compared to marketers.

ROI is Return on Investment. It is the return over time that you will receive on your initial investment.

We tell our clients that they should expect a 3:1 ROI ratio with our projects. What does that mean? It means that for every dollar they spend with us that they receive three dollars in return in profit. Most receive a return much higher than that. However, that means AFTER they get their initial investment back. You also have to keep in mind that the investment should yield profit over time.

For what ever project you undertake you need to look at the return to see if it’s worth doing or if you would be better off investing the money is another way.

Some of the discussion talked about ROI on an ecommerce site VS a lead generation sites. You can and should measure ROI for both types of Web projects. Our next post will discuss how to measure ROI for a lead generation Website.

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