I’m often asked how much a web site redesign will cost for a manufacturing goods or service firm. And my response is always this: the cost of a web site must be looked at as a long term investment. And if the site is designed in a manner to attract new business online, then you really need to consider the ROI of the new web site.
The first factor when determining the ROI is the value of a new client to your firm. Whatever your company sells, as yourself how much each new client is worth. Is it $250? $500? $1500?
Once you’ve established this, you need to get a realistic idea of how many new qualified leads your new web site will bring in. This is trickier and takes some understanding of online data. It is largely determined by the demand for your particular product or service, as well as how competitive the online market is for that product/service. This data is available from the various search engines as well as other third party companies which keep this kind of data. We use sophisticated software to analyze the data and give estimates as to what an optimized web site will reasonably attract.
So let’s say that, after the traffic research, we conclude that you can reasonably expect 10 new web site visitors per day within 45 days of the redesign, and as many as 50 new visitors per day within 6 months after the site is up and has had a chance to elevate the search engine rankings for all the targeted keywords.
Then simply do the math. If you assume a conservative 2% conversion rate for the extra targeted traffic you will receive from the new web site, it’s rather simple to calculate the return. For example, if each new customer is worth $300 to you, at a 2% conversion rate, 10 extra visitors per day is worth $350 per week to your firm. If a new customer is worth $1,000 to your firm and you get 20 extra visitors per day, it is worth $2,750 per week to your firm.
Marketing with ROI in mind is how we at Industrial Marketing Advisers think, and it is why we put so much time into pre-design research and the subsequent SEO of the web site. Because when we do this right, the client is rewarded with high search engine traffic, which pays dividends month after month, year after year. Most of our clients see their investment returned in under 12 months and consider it the best investment they ever made. Understand the numbers and you will understand that the ROI of an effective web design cannot be matched by any other advertising medium.