Finding Your ROI on Your Website
We've celebrated Independence Day with parades, fireworks, and barbecues. Now it's vacation time and the office is a little quieter. Clients are out of town too, giving you a little time to track, compile, and analyze data related to your website. Measuring your website's return on investment (ROI) is the key to assessing the effectiveness of your Internet marketing efforts.
Google Analytics, which is free, can be incredibly useful for tracking your site's traffic. It can tell you how many people visit, how they get there, how long they stay, where they live, and how many fill out the contact form. This information can help you find under-performing site content and help determine your ROI.
In order to get a clear picture, we have to enter the world of numbers. Experts recommend using the following categories:
- Visitors: Track the number of visitors to your website during a specific period of time. Use longer periods for more accurate results.
- Conversion rate: Conversions are when a client completes the contact form or makes an appointment. Calculate the conversion rate by dividing the number of conversions by the total number of site visits.
- Leads: Visitors multiplied by the conversion rate equals leads. For example: 4,500 visitors multiplied by a 2% conversion rate equals 90 leads. This figure can help you determine whether what you're doing is effective.
- Closing rate: Divide the number of people who buy your service by the number of visitors. For example, 100 sales divided by 5,000 visitors equals a 2% closing rate. Experts say 1-3% is a good rate.
- Lifetime value: Lifetime value is the money a client brings in over time. Clients needing frequent legal services are worth more.
- Delivery costs: That's the cost of your website. It is a rough figure which includes development costs (if this is a new site and that cost has not already been accounted for) and monthly costs of operating the website, which includes hosting and any monthly fees for third-party tools you use.
Calculating the ROI of Your Website
We're seeking the number of consumers who became clients solely because of the website. This means they scanned your site, filled out a contact form, or set up an appointment using the appointment scheduler available through the SBM Member Directory.
Once the information is collected, you can calculate your website's return on investment. The formula below will give you a rough idea:
ROI = (Sales – Cost)/Cost
ROI is typically expressed as a percentage, so multiply your result by 100.
Calculating the ROI of your website helps you to make educated decisions, keeping the things that work and reworking the areas that don't produce as well. Small changes can make a big difference in your results.
Roberta Gubbins has served as the editor of the Ingham County Legal News. Since leaving the paper, she provides services as a ghostwriter editing articles, blogs, and e-blasts for lawyers and law firms. She is the editor of Briefs, the Ingham County Bar Association e-newsletter, and The Mentor, SBM Master Lawyers Section newsletter.
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