Why your website should be viewed as an investment
In this article we will help you to see your website in a new light. Your website should be a tool that is used to increase the value of your business.
The problem is that many business owners see their website as a necessary evil. Every company has a website these days, so we'd better get one too. Reluctantly, these website owners will look for a cheap solution to their problem. But the problem still remains. The only difference is that they have less money in the bank and still have a website that is not bringing any value to their business!
So let's look at this in a different way...
1. How much is a new customer worth to you?
Or to put it another way, how much are you prepared to spend to gain one new customer? If you can answer that question, then you are in a far more educated position to set a budget for your website. If an average customer order for your business is £500, then it may not seen unreasonable to spend between 5% - 10% gaining that new customer. If your business model brings the same customers back month after month, then you may be prepared to spend a little more to gain a new customer. Let's break that down a little with an example...
Kevin sells state of the art sandwich toasters. The profit he makes on each toaster is £50. What if Kevin was prepared to spend £10 gaining each new customer. His target is to attract 20 new customers per month via his website. So that would be a monthly investment of £100. He would have spent £10/toaster but gained an increase in sales of £40/toaster. So, he's increased his business by £800/month. If Kevin continues to attract those customers every month, then over a 12 month period he has spent £2,400 on his website, but increased his annual sales by £9,600. Not bad work, Kevin!
2. How much is your time worth?
Maybe you don't want to sell online, but you are spending a lot of time manning the phones to answer all of your customers sales questions. What if you could reduce those phone calls by answering all of your customers questions on your website? Let's see another example....
Laura sells hand made bespoke furniture. There are lots of different options to choose from; materials, finish, paint, design, and customers always have a lot of questions about her products! Laura would love to spend her time creating her designs and knows her time is worth a lot of money. The only problem is that Laura is spending 10 hours a week just handling customer queries. That's 10 hours where she could be making money. She has calculated that her time is worth £60/hour. That's £300/week lost to answering the same questions over and over again. That's whopping £15,600 that Laura is losing every year saying the same thing over and over again to her customers. Imagine if Laura could put all of those answers in one place online and direct all of her customers to that one place. I think Laura would be a very happy person!
Once you have clear goals for your website and have decided how much you are prepared to spend to achieve those goals, you can budget for a system that will develop your business.
3. Is your website effective?
So now that you know your goals and have budgeted for them, you will be able to see your website as an investment! To put it simply, you know what you are trying to achieve and you can now measure your investment to see if it brings in a return. With the help of a skilled team, you can put systems in place that will help you to measure the effectiveness of your website in achieving your business goals.
Isn't it about time that your website gave you a return on your investment?
If you would like to know more about Perspective Design and our development process you can read about it on our process page. To get started on your project and turn your website from a pretty brochure into something that will bring in a return on your investment, then head over to our getting started page.