How to calculate Roi from making a new website to be seen as a tangible number.

"Do a million websites ... and is it really worth it?" Open the new ROI calculation formula that business owners must know! (Modeling version)

Every business owner! Have you ever felt like this? We throw a large sum of money. Including design fees for the development of the new website, beautiful, elegant ... but when someone asked "And is it worth it?" We can only be stunned, just answered, "The website is pretty good" or "more people" ... But if asked as a "number" that it made how much money back to the business? We can't reply! Feeling like pounding this river Will not happen anymore, because today I will reveal the "secret formula" that will change your website from "cost" to become a "money making machine" that can actually measure the ROI calculation than you think!

The real problem in life

The classic problem that almost all business owners encounter is "Measurement of website making". We invested hundreds of thousands or maybe a million baht. We only see the "cost" that is paid in the account number. But we have never seen the "return" back as a clear number once. Finally, the website became just "Beautiful online brochure" that is for customers to see But I don't know if it really helps the business to grow or not. The question that is always unresolved is "The money paid How much can it change to sales? "This is not clear, so we do not dare to invest in online marketing. And causing us to miss the business opportunities unfortunately

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Why did that problem occur?

This problem is not because the website is not good, but caused by "lack of planning to measure" from the beginning. We tend to see that making a website as a "design" project or "IT" that focuses on just the beauty and function. But we forgot to look at the angle of the "businessman" that has to set the Measurable Goals to the website. We do not specify that What is the "KPIS" indicator of this website? We need "increased sales", "New customers (Leads)", or "booking service queue"? When there is no clear goal There is no correct data collection. And when there is no information Cannot calculate the value Making the website become just assets that "Unable to assess" in business

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If left, how will it affect?

Letting the website just "black box" that cannot be measured Will negatively affect the business in the long run rather than you think. 1. Misunderstanding: You will not know if the digital marketing strategy is effective or not. Which way to increase the advertising budget? Or should improve the content on the website Every decision is based on "feelings" not "real information". 2. Cannot expand investment: You will not be able to present the plan of additional marketing budgets from the board or accounting department. Because there is no number to confirm that the previous investment created the return. 3. Lose the opportunity for competitors: while you are still "mam" in the dark. Your competitors that measure the results are May be spending money with the most profitable channel And leave you far away. Finally, your website investment may be "wasted" because you can't prove your own value.

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Is there any solution? And where should it start?

The solution to this problem is straightforward and powerful. That is "calculating the return of investment" or "Return on Investment (Roi)". Its heart is easy. Is comparison "The profit from the website" and "money investing with the website" with the following basic formulas

$$ roi (\%) = \ FRAC {(net income from all websites -costs of the website)}} {all the costs of the website} \ Times 100 $$

Where did you start?

• 1. "All costs of the website (Cost of Investment): List out. Whether it is the design and web development, annual hosting, domain, maintenance, plug -in or tools, and most importantly, "marketing budget" that is used to promote the website as well.
• 2. Specify "Gain from Investment": This part may be slightly more complicated. But it's possible
  • If it is an e-commerce website: is the "sales" that occur directly through the website.
  • If it is a service business website/B2B: is "the value of new customers (Leads)" from the web, such as people who fill out the form, call in, or chat. Which we have to assess the value of each Lead into money
  • Indirect income: such as reducing customer service costs through the FAQ page, creating a brand Awareness that affects the store sales. (This part may be more difficult to measure. But can be assessed)

When you have all these numbers Just put in the formula You will see the value of the website as a tangible number immediately. Study from a reliable source of information like Moz is another way to understand this.

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Examples from the real thing that used to be successful

In order to be clearer Take a look at this hypothesis: "A beauty clinic" decided to invest. Make a new website ready to do SEO and shoot advertisements.

Total costs (Total Cost):

• Website making fee: 250,000 baht
• Annual care and hosting: 20,000 baht
• Google ADS advertising budget: 120,000 baht
• Wages to make content and SEO per year: 110,000 baht
• Total costs in the first year: 500,000 baht

Total Gain:

• The new website created Leads (new patients who greet in to reserve a queue) average 25 people/month or 300 people/year.
• Closing rate (People who say hello to the actual service): 20%
• Therefore, the clinic has a new patient from the website = 300 x 20% = 60 people/year.
• Average value per patient (Average Patient Value): 20,000 baht
• Total revenue caused by the website in the first year = 60 people x 20,000 baht = 1,200,000 baht

Calculate Roi:

$$ roi = \ Frac {(1,200,000 - 500,000)}}} \ Times 100 = \ Frac {700,000} {500,000} \ times 100 = 140 \% $$

The result is Roi 140%! Means that every 1 baht that invests on the website This can be returned to 1.40 baht. This is a clear number that can be presented to executives for the budget comfortably. This type of case actually occurs, such as the case study of the clinic that can increase the reservation of up to 300% after creating a new website.

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If wanting to follow, what to do? (Can be used immediately)

It's your eyes! Try to follow the checklist 4 this step to calculate your website's ROI.

Step 1: Collect all "costs".
Open the Excel file and list all the costs related to your website in the past 1 year. Do not drop even one item.

Step 2: Follow up and measure the "income" from the
Google Analytics 4 tool installation website to see which web people are in the web and set the conversion tracking to track every important action, such as pressing the call button, sending form, adding lines or ordering products.

Step 3: Specify "value" to every conversion.
If your website is not an e-commerce, try to calculate "value of 1 led" by looking at the past statistics, such as having 10 people filling out the sale, which will close 1 person, which 1 customer generates income for 50,000 baht. Therefore, the value of 1 Lead is 50,000 / 10 = 5,000 baht.

Step 4: Bring all numbers "Calculating the Roi" formula.
Once all the costs and income numbers Can be put in the ROI formula provided above! Systematic planning according to Roadmap. Creating a new website. Will help this step easier and more accurate

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Questions that people tend to wonder And the answers that are cleared

Q1: How does the company (Corporate Website) that do not sell directly? Calculate Roi?
A: Of course! Although the organization website is important And does not focus on direct sales But we can measure the results of the "Leads" value (such as people filling out the quotation form) or "reducing costs" (such as the use of FAQ pages to reduce questions that must be answered via Call Center) or even "the value of the Brand" which is increased from a reliable image. Which can be assessed as money as well

Q2: How long should you start the ROI temple after the web?
A: In general, there should be accumulated information at least 6-12 months in order to see clear results and eliminate short-term fluctuations. Especially if you have a SEO, which takes time to climb

Q3: What tools are there for free to help track data?
A: Powerful and free tools are Google Analytics 4 (GA4) for viewing traffic and user behavior, Google Tag Manager (GTM) for installing various conversion codes, and Google Search Console to see the effectiveness of the Google website.

Summary to be easy to understand + want to try to do

Creating a website without knowing how to measure results Is like driving without a dial telling speed or oil You have no way to know if you are driving in the right direction and can reach the goal or not. The calculation of Roi will change your website from "beautiful things" that cannot be as "powerful assets" that are powerful and prove their own value as well.

Do not waste your investment anymore. It's time to pick up the calculator. And start calculating the value of your website from today!

If you want to change the organization website into a real money making machine But don't know how to start Consult a specialist in our organization website! We are ready to help you plan and create a website that creates the most return for your business.

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