When we say cross-sell and upsell strategies, we refer to key selling tactics, methods, and techniques that will lead a business to generate more profits, regardless of what they do. In fact, it’s safe to say that these strategies fit businesses of all sizes.
If we take you back about 12 years, you’ll remember the Amazon case and how they used such strategies to generate 35% of its total revenue. Online retailers saw a chance, an opportunity in this and, hence, these strategies are now more popular in e-commerce than ever.
Cross-sell and upsell strategies are an invaluable marketing toolkit for every online retailer, looking for a good way to multiply their revenue.
What Are Upsell & Cross-Sell?
Each time a customer makes a purchase, online retailers use upsell and cross-sell strategies to recommend other items that might fit their preferences. These recommendations come with varying degrees of profitability and in different ways.
Upselling refers to when a retailer knows what you prefer and how much money you have at the moment of your purchase so they try to sell a higher-end version of what you wanted to buy by offering a better and more costly version of a product.
If you want to buy a basic model of a smartphone, your retailer will try to sell you a more luxurious model of the same phone at a higher price.
On the other hand, cross-selling refers to when a retailer tries to sell additional items that they predict you might need and that fit well with the item you planned on buying. Usually, these items are offered at such cheap prices that customers simply can’t resist.
The Effectiveness of Upselling and Cross-Selling
Despite the fact that these selling tactics are so simple, they give proven results and benefit those who know how to properly apply these tactics in their business. In fact, if well-executed and applied in smart ways, online retailers can witness an incredible revenue increase. This is due to two undeniable facts:
Current customers are easier to reach than new ones – it’s a higher probability that you’ll sell more items to an existing customer than a new one simply because your current shoppers are already interested in your offer.
Loyal customers buy more – due to the trust between a retailer and a customer, current customers become loyal customers in time. Loyal customers are easier to reach which guarantees a strong relationship. That means that each time a retailer offers them added-value items, they’ll get more value while paying less. This results in customer satisfaction and happiness and everybody wins.
The 4 Most Effective Upsell & Cross-sell Strategies
1. Bundle Up Only the Most Relevant Items
The first and main rule of upselling and cross-selling is: only create the most relevant deals. That means that you put together only those items that really go well together. If a person is looking to buy a cooker, a cooker cleaner would be an item that follows nicely. Remember, your customers have already chosen their item of interest, so use your reasoning to find out the next best thing according to their preferences.
2. Be Wise With Your Discounts
The total order must not go up by more than 25% of the total amount. That means that you need to think about your discount but in a way that won’t exceed the initial budget of your customers. Driving up the total payment too much won’t get you anywhere, but if you get your customers interested and you give them a good discount to spice things up a bit, they will be willing to pay more.
The only exclusion from this rule is the situation when a customer really needs some additional items urgently as that is the situation when you can get them to over-cross their initial budget limit. Other than this, a quarter of the full amount should always be your limit.
3. Make Your Deals Scarce but Urgent
Special deals, last minute offers, and other scarce but urgent deals are always a good way to engage your customers and increase revenue. With that in mind, even though this strategy may be intuitive, don’t overdo it. It’s absolutely true that unlimited supply surges demand but overdone messages may cause annoyance and confusion to customers rather than increase their interest.
Choose a more psychological approach to increase your chances to sell more. Even if your customers can’t make up their mind, give them a chance to at least think about it before they decide to buy. If they don’t want to buy, make your special offers easily elusive with a promise of the next one coming really soon.
4. Upsell only After the Checkout
With upsell and cross-sell tactics, it’s all about hitting the right moment. If you offer the right thing at the right time, your chances of selling greatly increase. However, if you’re looking to sell more no matter the time and place, you’ll get nothing done. So, recommending the right items based on the purchase at the right moment is the only way to ensure success instead of a distraction.
Therefore, the right moment or your best moment to make a recommendation is at the moment of checkout or when your customers are at the payment gateway. This is because of two reasons:
After your customer’s checkout, you have a clear insight into their preferences so it’s easier to guess what might go well with their current interests and, by recommending the right items, you greatly increase the chances of getting them to buy more.
It’s much easier to sell more to a customer who is already making a purchase than a new one. By simply offering a discount or recommending related items, you can get your customers to buy more.
These two strategies are the main pillars of every online store on the internet and these are the best tools online retailers can rely on to increase revenue. Still, the only thing that matters is applying these strategies in a smart and mild way to ensure maximum effect.
If applied timely and wisely, it will help any e-commerce generate maximum revenue. Therefore, it should be part of every e-commerce website design or at least for those websites looking to improve performance.
The big 4 of eCommerce platforms are Shopify, BigCommerce, Magento, and WooCommerce. There aren’t clear figures that show which one is on top, but these 4 solutions are the most popular ones today. In this post, we are going to be talking about WooCommerce and Magento.
Although they are equally popular and have a similar number of features, they are a lot different. It can be difficult to choose one over the other, especially if you don’t know much about eCommerce platforms. Luckily for you, we’ve decided to list out all the advantages and disadvantages of these two options and help you reach a conclusion.
The best eCommerce platform is not the same for everyone because, in the end, it comes down to your specific needs. The important thing is to know your needs and recognize a platform that is best suited to them.
How they stand out
WooCommerce is not a standalone platform but a very powerful plugin that can be used with WordPress. However, this doesn’t mean that it is lacking in any way when compared to typical eCommerce platforms. It has all the essential features that any eCommerce site would need. At the same time, it is very easy to use, just like WordPress and integrates with WP sites seamlessly.
This eCommerce platform is specifically designed for web developers. It’s most suitable for medium and large eCommerce stores. Magento probably has the largest number of features, and some of the most innovative features of all eCommerce platforms and this is why stores that want to grow and drive their results through new practices use it a lot.
Most notable features
It is completely free.
Users have to acquire hosting on their own.
There is no limit to the number of products.
Supports almost all themes on WordPress and comes with many different customizations.
Has a system for extensions with many options.
Has only basic store security functionalities.
It is very easy to use and the learning curve is user-friendly.
Has support for various marketing campaigns including coupons, discounts, usage limitations and so on.
Offers advanced reporting capabilities on inventory, store performance, sales, customer and product reviews.
Supports different payment options such as cash on delivery, Paypal, and credit cards.
Has an open-source version which is free and a couple of paid versions.
With the free version, users have to get their own hosting while premium versions come with hosting services.
There is no limit to the number of products.
Offers a decent number of theme options.
Has extension support and gives a lot of varieties.
Comes with advanced security features and dedicated patches which further enhance security.
It can be difficult to use for people that don’t have basic web development skills.
Allows customers segmentation, targeted marketing, merchandising, and other marketing practices.
You can set multiple wish lists.
It has an integrated CMS.
Drawbacks of each platform
Due to its basic security features, WooCommerce requires consistent security maintenance. If not, your store will be vulnerable. Even though WooCommerce has a lot of plugins available, this is not necessarily a good thing. When installed together, a lot of those plugins become conflicted, causing problems.
WooCommerce has many developer risks and it requires self-hosting. At the same time, core plugins have frequent updates that change things and could disrupt reliability. In the end, WooCommerce can also be used on WordPress and no other platform.
Magento is a very complex platform which requires development knowledge, without which it cannot be used. It has a lot of maintenance and usage costs which need to be taken into account. Outside apps and themes can be implemented, but with a lot of effort.
Magento also needs regular software updates to work properly. A lot of the functionalities and issues that need to be solved can be done only with advanced development knowledge and a dedicated professional.
Based on everything mentioned above, it can be difficult to reach a final conclusion. Each of these platforms has their own advantages and disadvantages. You need to recognize which one works better for you. Simply put, even though they have similarly vast user base, they have different users.
This means that you need to make the right choice to avoid issues with your online store. If you have a WordPress website but no development knowledge, then WooCommerce is the platform you need. On the other hand, if you have a big budget and you want to create an advanced eCommerce store, then Magento is what you need.
We hope this post helped you make your final decision. Of course, when it comes to such a vast and important topic, research is imperative. Therefore, do not stop your research! Continue reading here or find other sources. The more you find out, the better your decision will be. As we already said, both platforms are a good choice – which one will you go for depends on one thing and one thing only – your personal preference.
Take your time, go through the pros and cons and see where you are after that. If nothing, you can always test things out – start with the platform you prefer and, if it doesn’t work out, switch to the other one. It’s not a simple thing to do, but it is doable.
A Server space for website hosting – shared hosting
It is recommended to go for a cheaper shared hosting instead of a dedicated server for a small/ medium scale websites. You will be getting speed advantage if your website is hosted in UAE or UK. This will help SEO as well. there are plenty of hosting company available to choose from
Attracting a potential customer is hard enough. Grabbing their interest and retaining them is even more difficult. It is important to design your site so that the user frustration is kept to a minimum and get a high business conversion.
According to study, it takes less than a second for a user to decide if they want to continue going they every page of your site, or just leave and find another option. The study concluded that this is 94% related to design, and only 6% on the content. People only scan through the website, they don’t instantly read everything until they find the need to.
The consumer is more interested in the exterior characteristics of the site, such as the colors, font, typography, movement, than the actual content. The overall design also plays a huge role in the credibility of the website.
It is very important to design a website that is engaging, as poor interface design results to rejection and mistrust of the website. Another study also supports that first impression can last for years. So make sure you deliver the best first impressions on your visitors. If they immediately like your site, they are most likely going to explore on your website. The same goes when they have a negative first impression of the site, their overall satisfaction decreases.
It is also equally important to know where your visitors focus their interests on a website. The following 6 elements should be designed attractively to get your viewer to stay longer and browse every page on your site.
Your logo is the symbol that can provide consumers with instant and powerful brand recognition of your business and the services or products that you offer, this must be presented on your website in a way that your visitors can easily remember. Users spend about 6.48 seconds before they decide to click the back button or scroll the rest of the pages of the site.
Main Navigation Menu
Main navigation menu also has the most common stumbling blocks. Visitors usually focus on this area for 6.44 seconds before they realize they want to continue or stop. It should be designed in a way that is convenient, easy to navigate without confusing the user which direction they must follow, and with fewer efforts on clicks and scrolling.
The search box helps your visitor to navigate thru the whole site quickly and they will spend over 6 seconds to explore on this option.
Site’s main image
The Sites image is a very crucial page of engaging your visitors. If given the right information and presentation, a user will be immersed in this area for about 5.94 seconds.
The site’s written content-
Your visitor will fail to read your site’s content if there is not enough information or as simple as the font size is too small. Visitors spend about 5.59 seconds on this page.
Bottom of the website– although the least focused area where users spend about 5.25 seconds, it is essential to design this area in a very organized manner as it has a significant effect on the whole look of the site.
Another major focus area on your website that should not be overlooked is the design and information you have on the “above the fold” section. People do scroll down on the website, but before they do, the first image and information that they see should easily catch their attention and you only have 0.05 seconds to make that happen. Since there are more devices used to access a website in today’s technology, the content on this area should cover the scope visible to every device, may it be a computer, a mobile phone or a tablet.
Element 8 has successfully developed and implemented mobile and web application for Cweed Corporation in Zanzibar, Tanzania.
It is a fantastic and satisfying feeling when you build something which helps to solve complicated problems and make life easier for the common man.
Cweed corporation a leading business based in Tanzania and market leader in exporting seaweed across the globe. Managing thousands of farmers and streamlining their collection and storage. The entire process was not as easy as expected when there was no system in place. It was always challenging to implement a system when you deal with people who live in the remote areas and who do not possess the required level of expertise in technology. Our primary challenge was to simplify the app as much as possible, and the UX we designed was simple and effective so that any user who has a minimum technical knowledge would be able to handle it with ease.
As a part of the project, we have developed a mobile app for the stationmaster who is in the field to collect seaweeds from farmers and another web-based PHP open source application for warehouse management.
Stationmaster mobile app
Over a hundred station masters collect and store seaweed from the farmers on a monthly basis. The app will assist the station master to consolidate seaweed collection from the over 200 farmers on a regular basis. The app will track the issuing of ropes for each farmer and calculate the expected sewed collection at each harvesting interval. On top of this, they can use the app for their expense management, farmer performance analysis, and to interact with the warehouse manager. The Android mobile app is always connected to the server in the warehouse, which helps the warehouse manager to track the stock of seaweed and rope in each station. The warehouse manager also checks and verifies each expense uploaded by station master, in seconds and release additional petty cash if required.
Warehouse Management app
The web application we build in PHP & MySQL platform helps the warehouse manager to streamline the entire process which includes managing station masters, farmers, ropes and seaweed storage. There are multiple user roles implemented so that each member can manage their section. This helps in simplifying the process whereby the user sees only information that is relevant to him.
The app also provides a detailed reporting module were top-level manager can see the overall performance of the organization, warehouse, stock, station master and even farmer. The system will generate monthly and quarterly reports automatically.
Due to the tight integration with the mobile app, all the communications are on the right channel, and it can monitor and analyse the intelligence for further business development.
The first batch of Station masters after three days Training section in Misall Sunset hotel, Pembe
Our Technical Lead Visit in Pembe for the training
The needs of consumers have drastically changed over the past decade. This has compelled companies of all sizes to change their strategies for attracting their customers and satisfying their needs. Traditional marketing strategies are simply not going to cut it anymore.
Of course, many outbound marketing strategies, like cold calling, still work. Otherwise, a great number of companies would have already abandoned them.
However, you can no longer rely only on traditional methods if you are looking to achieve better results. You need to step up your game and keep up with the changing times, so that you can stay relevant and gain a much-needed competitive edge.
If you want to attract as many customers as you can and ensure that you retain those you’ve already engaged in your brand, you need to upgrade your marketing efforts.
Here’s a little story of my friend’s business and how their organization (which works very well) had trouble with cold calling.
The 1.2 Million-Dollar Problem
My friend came to me for advice on generating more leads and sales and bringing in more revenue. Their revenue was very good (10 million dirhams a year), but they mostly relied on cold calling. Given the amount of revenue, it’s obvious that cold calling really does work.
However, it’s very, very hard. It’s hard as hell to get someone on the phone and get them to actually stay on the line while you pitch them your product. It works, but it’s extremely tough.
On top of it all, it’s very expensive. Every single time someone hangs up on you, a portion of your hard-earned money goes straight down the drain.
All of this is incredibly frustrating and leads to very low workplace morale, demotivating employees and sucking all their energy. It leaves them with no drive to actually do their job effectively and sell the products.
So, I talked to my friend and advised him to start harnessing the power of inbound marketing. Fortunately, he listened and increased his success 10-fold.
You too can reap the benefits of inbound marketing and ensure your business isn’t left in the dust.
Why Exactly Inbound Marketing?
Consumers today dictate how you’ll approach them and engage them in your brand, so you need to make sure you follow their rules.
Since every piece of information is available online, people do their own research to find the products and services they need. They don’t want to be sold to – you need to earn their engagement and trust.
Also, they hate hard sell ads. According to the 2017 AdBlock report, 615 million devices are using AdBlock.
Think about that for a second.
The key is to help your customers, instead of advertising to them. They don’t want to hear about your products – they want you to help them solve their problems.
Enter inbound marketing.
With inbound marketing, you can provide your target customers with real value at every single stage of their buying journey. You can provide them with useful and relevant content that will engage them in your brand and entice them to keep coming back for more.
Inbound marketing is a way to get your customers to contact YOU, instead of you trying to find them or push them to buy from you. Pushing them to buy will only push them away.
It’s All About High-Quality Content
It really is. It all comes down to that.
With high-quality content that really solves your customers’ problems, they’ll start trusting you and they’ll see you as an authority in your field. They’ll see you as a credible source of information and you’ll become their go-to resource for issues related to your products or services.
It’s the most essential step for building strong and meaningful relationships with your customers.
Here’s how we use inbound marketing to attract leads and earn money round the clock.
We identify target customers’ problems.
We create content addressing those problems and publish it on our blog.
We use email marketing and social media marketing to promote our content.
People who find our content interesting and useful then check out what else we have to offer and subscribe to our email list.
We send welcome and follow-up emails and start building relationships with them.
Their engagement increases and THEY contact US.
If you do the same, you’ll have leads coming to you and you’ll supercharge your sales.
How to Get Started with Inbound Marketing
It’s pretty simple: start a blog in your website.
That’s where you can provide answers to all your customers’ questions. Find out what their needs and interests are and write posts that will solve their problems.
Blog consistently and always provide something fresh and useful. Use keywords that your target audience is using to search for the solutions to their problems – they’ll find you easier that way.
Use tools like OptinMonster and Hello Bar to get your blog readers to subscribe to your email list and get a chance to receive more of your great content.
The biggest problem would be finding the time for blogging. If you don’t have enough time or aren’t really skilled at writing, we’ll help you out.
We have a combined industry experience of over 25 years, and during this period, we have achieved an overwhelming reputation in the market. Element 8 has already worked with innumerable clients ranging from start-ups and SMEs to multinational corporations and governments. We’ve earned our name through a lot of hard work and creative thinking, which gave us an invaluable experience for the future.
100% In-House Work
Because we love what we do and because we want our clients to feel the same way about our work, Element 8 keeps everything 100% in-house. From designing, development, or digital marketing, we never outsource your projects externally, nor will we send them to a foreign office. We take pride in our Dubai-based family, in which every member aims to contribute to our mutual goal – to deliver and maintain, at all means necessary, the highest quality of service in the Middle East.
Our online channels of communication are open 24/7, but we still encourage our clients to visit us offline, sit down with our team, and spend some time discussing the requirement. That’s why our offices are situated in the very heart of Dubai, on the amazing Sheikh Zayed Road. Being the main artery of the city, the Sheikh Zayed Road is easy to access from anywhere in Dubai. A lot of our clients come to the Element 8 offices to join our team during the discovery process and design phase.
Web Design, development, and digital marketing are in our blood, and we never stop honing our skills. We’ve entered this niche as passionate professionals, and we’ve decided to stay here because our hard work makes our clients smile. Along with our technical prowess, we nurture customer care and client satisfaction, boasting a long portfolio of successful projects and relationships. Your needs are our priority, and your satisfaction is our privilege.
Follow-Up & After-Sale Support
A lot of our clients have been with us from our early days, still reaping the benefits of our follow-up and after-sale support. This service is completely free of charge for the first 6 months after the project is completed, during which we’ll keep monitoring, analyzing, and optimizing your site. This includes streamlining the content and optimizing the user experience. And, if you decide to host with Element 8, we will take care of the technical issues related to the website throughout the first year, all for free.
We’ll never treat your demands as one-off projects, no matter how simple they are. Our team will do everything in their power to meet every single one of them, and they’ll go one mile extra to exceed your expectations. But even then, our prices will remain affordable and competitive. Even though our experience and reputation have put us side by side with the best agencies and market leaders in Dubai, we insist upon charging less, so that our services are accessible to clients with all needs and budgets.
We’ve launched Element 8 as a boutique agency that specializes in all creative aspects of advertising. As out-of-the-box thinkers who genuinely enjoy brainstorming and creative process, we intend to keep expanding our team with nothing but high-caliber talent. We follow the principles of design thinking but aren’t afraid of breaking the mold. Feel free to demand the unthinkable, as we perceive every demand as a creative challenge. Since we’re always on the mission to innovate, we’ll gladly accept it.
Scalable Source Code
In the off-chance that you decide to opt for another agency’s services, we’ll shake your hand and leave you with absolutely everything we’ve contributed to your website design project. This includes the source code as well so that you can continue the development alone or with some other professional, absolutely without any hidden charges or fees.
Meeting a new client’s demands is always tricky when it comes to website design, which is why we facilitate the initial part of the collaboration with our N-concept philosophy. It means that our team will deliver a certain number of concepts (typically 3) based on your requirements and our internal brainstorming, competitor analysis and data collected during our ‘Discovery Process’. We then wait for your feedback. From our past experience, a vast majority of clients like the concepts with some minor tweaks, which can be done in a blink of an eye.
Changes at No Extra Cost
Not only are we interested in hearing what you have to say about the initial concepts, but we’re also willing to listen to your suggestions throughout the design process. Any changes that you might request along the way will be taken into consideration and applied immediately, at no extra cost. The number of free additional tweaks is unlimited in our case, which means that you can request as many changes as you wish during the design stage. Website design should not be rushed, so take your time.
Website design and SEO go hand in hand, both serving to achieve the same goal – to put your name on the map, boost your brand awareness, and acquire new customers. Just like all other projects, Element 8 develops search engine optimization strategies in-house in Dubai. We would never compromise the quality of our work by outsourcing it abroad to freelancers, nor would we risk your satisfaction for the sake of our convenience. We know SEO by heart, and we design with SEO in mind.
In today’s world the official website is an important part of any business model. This is why there is a lot of talk about boosting the performance of a website. With the search engines taking the lead in how people find and consume online content, a website’s profitability has become more dependent on a scientific approach than on luck.
Since digital marketing and web development and design have become too complicated, many business owners don’t know where to start. Therefore, we are here. We will help you identify the key areas of your website and provide you with practical advice on how to boost their performance.
Establish Clear Goals
Website performance is a very broad category that covers too many goals. Since every business is unique, you will have to devote some time to establish clear business goals and determine how to achieve them. These goals will reflect your website performance goals, and what’s even more important, they will give your website performance boost strategy a much-needed structure.
These are the most common goals:
Increase sales of products or services
Increase the number of people who subscribe to your mailing list
Increase engagement of people reading your blog posts
Improve customer satisfaction by delivering great customer support
Improve overall user experience
We also have to stress the importance of understanding that website performance does not equal website loading speed. Website load speed is just one of the key areas you can improve to boost overall performance, especially in the website traffic, customer experience, and satisfaction areas.
Understand Your Traffic
After you have established your goals, you will have to understand your traffic. In other words, you will have to analyze it. This is really important because it will help you sort out the best performing areas of your website from the ones that don’t perform as well. On top of that, you will also be able to assess the efficiency of your digital marketing strategy.
The thing is that your website visitors come from a variety of places – some of them convert, others don’t. By analyzing your website traffic you will be able to determine:
Where the traffic originates from.
Which sources generate customers.
Which sources generate visitors that bounce off your website.
This is will put you at a significant advantage. Since you will determine which sources generate high-quality leads, you can now expand your digital marketing strategy to get more of those coming. On the other hand, you can identify the pages that cause the visitors to bounce off, and make relevant changes to nurture those leads.
This is not hard to assess. You can use one of the best tools on the market, which is also free – Google Analytics. Here is a great guide if you want to learn how to use this tool to find traffic sources for each page on your website.
Learn How Visitors Use Your Website
The next thing you need to do is to learn how your website visitors are interacting with your website. This will help you learn how to leverage your website to increase lead generation and conversion. Ask yourself the following questions:
Why are my visitors spending time on my website?
What pushes them away? Why do they leave?
What are they looking for?
Is there something they ignore?
If you don’t know the answer to these questions, then you need to devote some time and get them answered. The best tool for this purpose is heatmaps software. Within just a couple of days of embedding this tool on your website, you will be able to discover a lot of interesting facts about your visitors’ behavior and your website.
After all, maybe you have all the important elements in your website layout, but they are improperly positioned. Your visitors can’t find them and drift off to a better place.
These are the three most important heatmaps:
Hover heatmap – this one will help you identify the areas where the visitors hover their mouse cursor. These are also called interest maps, because they point out the areas of your website that are most interesting to your visitors. More importantly, they will show you the areas that are not, and that’s exactly what you will have to optimize.
Click heatmap – as the name suggests, these maps will show you the often-clicked areas on your website. What should you address? If people are clicking on the unclickable elements, you have to fix it and give them what they want.
Scroll heatmap – with these maps, you will see how far users scroll down. This can help you determine the preferable content length and proceed with optimization accordingly.
Consistency is The Key
If you want to achieve your goals, you have to give your best to continuously improve your website’s performance. This is why we suggest that you incorporate the above-mentioned practices into an ongoing website performance boost strategy. This is the only way to ensure long-term results.
Furthermore, online habits and behaviors change, and you will have to stay current with the best practices to meet the growing expectations of online content consumers, i.e. your potential customers.
Once you know your goals, it becomes easy to maximize the output of your current website and identify new opportunities for improvement. Using the proper tools and being consistent in the optimization process will help you leverage your online presence and reap the benefits of a well-performing website.
Calculating the ROI is an essential part of running a business. No matter what expense we are talking about, it’s important to know how much it pays off. Some business expenses you can calculate easily, while others could require a bit more know-how. Calculating your website’s ROI is one of the more complex tasks.
This is because websites are complex platforms with a lot of different factors that you need to take into account. At the same time, not all businesses use their websites for the same purpose, so some practices might not be relevant for some sites.
Know your website’s goals
As companies can use sites in a different way, their goals also change. This is why you need to outline what your reasons are for having a website and what goals you need it to achieve before you can take accurate measurements. Here are some of the most common goals that companies have for their sites:
Climb search engine rankings and build a strong online presence.
Generate as many qualified leads as possible.
Give visitors a great experience.
Make plenty of sales.
You might be trying to get all these things from your site, but you need to set a priority and focus on one area at a time to get the best results. See what your current goals are and you’ll be able to calculate the ROI and get accurate results.
Measuring the ROI of your site
Now that you know what your goals are and what’s important for a website to be financially successful, let’s see which metrics can best tell you whether you are achieving your goals. The best tool you can use to determine these metrics is Google Analytics, but a lot of other tools offer similar metrics. No matter which one you choose, you’ll be able to measure key metrics properly.
Amount of successfully closed sales through website leads
Average catering sales
Profit per event
The simplest way to determine this number is to use Google Analytics. You can start by calculating how many visitors you have per month on average. You can do this by setting the right dates based on how long your site has been online. For example, if your site was up since July 1st, 2016, you can set the analysis from that date to July 1st, 2018.
When you get the number, simply divide the total number of visitors by 24, as this is how many months have passed during that period, and you will get your average monthly visitors.
Since you’ve already found out how many visitors you have per month, you now need to learn how many of them make an action on your site. You can do this by looking at all the calls to action that you have on your site and how many actions your visitors made. Your calls to action can be:
Live chat conversations
Contact form submissions
There is no universal formula for this, the process is very blunt and simple. Look at all of your numbers separately and simply add them all together – the total number you get is your monthly conversions.
Bear in mind that conversion rates go from 2% to 5% and if you are in the upper area of this number, then your site is doing a good job. To calculate your monthly conversion rates, simply divide the number of conversion per month with your total number of visitors per month.
The closing ratio is the percentage of deals you are able to close on your leads from your site. You need to learn the number of inquiries you are able to turn into real sales. The formula that will give you this number is actually quite simple – divide all of your signed contracts with the total number of proposals.
After you’ve done that, use the closing ratio number and multiply it with the number of website leads you have on a monthly basis and you will see how many events were generated by your website during one month.
Average catering sales
Once you’ve gathered enough information, you can simply calculate your average catering sales by dividing the total number of sales with the total number of website events. This is how you’ll learn your average catering sales.
Profit per event
The last piece that will help you calculate your site’s return on investment is to calculate your average gross profit for a single event. Simply subtract your average catering sale from your average cost of goods sold and you will get the exact profits per each sale.
Calculating your site’s ROI
Now that you’ve calculated all the important metrics to determine ROI, you need a little bit more math and you are done. Use your monthly website generated events and multiply it by your profits per a single event. You will get the exact number of profits that you can potentially have for one month.
Calculating your ROI can tell you where your site is performing the best and where it can be improved. It will give you a clearer picture of how you are actually making money and how you can work on improving your profits even further.