Tracking Return on Investment with your website
A simple way to evaluate the productivity of your online investments!


A hot topic for all business's when looking at investing in the online realm is the return on investment the solution will provide. Today we will briefly talk about a simple way to measure this.

Direct Return on Investment:

Direct return of investment (ROI) is when there is a direct capital gain derived off your investment, for example; You investment a dollar and receive two dollars in return, giving you a dividend of one dollar or 200% ROI. Direct ROI is much easier to measure in the sense that it usually results in increased levels of direct visable sales through your online solution.

Indirect Return on Investment:

Unfortuently it is highly unlikely that 100% of your investment will deliver a direct return which is why it is also important to measure the indirect return. Indirect ROI can occur for a number of reasons such as; A person views your new website, likes your products however still chooses to come into your shopfront to purchase their items or if they tell their friends about your business and their friends purchase goods from you.

Indirect ROI is usually measured over a larger time line and takes factures other than just your online solutions into account.

An easy way to calculate your ROI

When calculating ROI one of the best methods is to deploy an analytical engine to produce a before and after look at the transactions and traffic for your business. Tools such as Google Analytics are free and incredibly powerful.

Deploying an analytical engine a month prior to deploying your new online solutions and keeping it running after your launch can effectively track increased traffic levels, areas of interest, targeted demographics and content relavancy.

For direct ROI you can track sales transacted online including traffic levels.

When calculating indirect ROI it is also important to include reports from your accounting package dating 6 to 12 months forward and prior to the date of deploying your new web tools. Keep track of your traffic going through your website and monitor the pages most viewed. This can provide you with invaluable information about the products you sell that your customers like the most and products that might need revisions.

Through this method it can be demonstrated that nearly all online investments can provide an ROI, however it is important to realise that additions to your business's online toolkit is almost always something that will build up over time and not happen over night

Happy Trading