Return on investment for non-ecommerce websites

Calculating the return on investment of marketing has always been traditionally hard to do. Back before modern technology and everything was paper based, the only way you could measure it was by putting a call to action onto the paper, and hoping that somebody did that call to action, so you could measure the response.

However as technology has improved so has tracking and now with the help of software such as google analytics, we can measure when somebody has gone onto our website, how they found us, as well as so much more.

This has enabled us to very easily track the return on investment of marketing on e-commerce websites as we can track where they came from, to all the way after they have purchased the product.

I recently got asked how do you measure your return on investment on a Non-Ecommerce website. Bearing in mind there is no money being passed for us to track, how can we see how much money our marketing is generating us? The truth is it’s virtually the same way as if you had an e-commerce website.

So how do we do it?

Every company can calculate what the average value of their customer is. Let’s say I’m a plumber and I have a Non-Ecommerce website and I know the average value of my customer is £100. Through creating a page with the specific call to action of contacting you directly you can create another landing page that your customer will only access through doing a specific action. Such as thanking them for getting in touch.

Through doing this you can now use Google analytics to set up goals on your website (need to find out more about creating goals please click here!). By measuring the link between how many people get in touch with you through that direct call to action and how many people it takes to get a sale you can now monetise that goal. For example if I have ten people complete my call to action and from that I get 1 sale I now know that the average value of each customer who complete that call to action is £10. Because the average value of my customer is £100 and it takes 10 potential customers for me to make 1 sale that means each of those potential customers has a goal value of £10.

Obviously, this needs to be monitored as you will find this value will increase and decrease, however you’ll find over time you will have a more precise value for you to use. Google will now automatically track that goal for you, and we can measure that against  how much money you spend on marketing. For example if I spend £1000 on various marketing platforms and that generates 1000 potential customers through my call to action I know that I have actually generated £10,000 worth of sales therefore my return on investment is 10x what I spent on marketing.

I hope this all helps you and let me know any other questions you would like me to answer!

In an ever increasingly competitive world where companies are struggling to stay open, should they use their limited resources on designing and implementing strategic business plans?