How to calculate the ROI of your website
How to calculate the ROI of your website
Your website is an investment. But do you really know how much it brings you? Calculating the ROI (Return on Investment) allows you to measure if your expenses - creation, maintenance, marketing, etc. - generate concrete profits. Here are the essential steps to understand and improve the profitability of your site:
- Identify your costs: include everything, from initial development (CHF 15,000. - for an e-commerce site) to recurring expenses like hosting or marketing.
- Track your results: analyze conversions, customer value, and direct or indirect revenues.
- Apply the ROI formula: [(Gains - Costs) ÷ Costs] × 100. For example, if your costs are CHF 50,000. - and your gains are CHF 200,000. - , your ROI is 300%.
- Identify weaknesses: low traffic, low conversion rates, or ineffective campaigns.
- Optimize your strategies: improve SEO, user experience, and adjust your ads.
A positive ROI means your site is profitable, but it can always be improved. With tools like Google Analytics 4 or HubSpot, you can track your performance and adjust your actions to maximize your results. In Switzerland, also consider adapting your site to local specificities such as multilingualism or legal requirements.
Digital marketing performance: how to measure ROI, ROA, ROE
Step 1: List all the costs of your website
To fully understand the return on investment (ROI) of your website, it is essential to identify all associated costs. This includes both visible expenses and those that are sometimes less obvious. A detailed analysis of each expense item is essential to obtain accurate figures.
Initial development costs
These costs represent the initial investment to design and launch your website. They vary depending on the project's complexity and desired features.
-
Design and development:
- : CHF 3,000. - to CHF 8,000. -
- Institutional site with advanced features: CHF 8,000. - to CHF 20,000. -
- Complete e-commerce site: CHF 15,000. - to CHF 50,000. - or more
-
Domain name and initial hosting:
- Registration of a .ch domain name: CHF 15. - to CHF 30. - per year
- Hosting for the first year: CHF 100. - to CHF 500. -
-
Technical configuration:
Installation of SSL certificate, email configuration, integration of analytics tools, and compliance with data protection laws: CHF 500. - to CHF 2,000. - -
Initial content:
For a bilingual site, budget between CHF 2,000. - and CHF 8,000. - for content creation and translation.
Recurring maintenance and marketing costs
Once the site is launched, regular costs must be anticipated to maintain and promote it.
- Monthly hosting: CHF 20. - to CHF 200. -
-
Technical maintenance:
This includes security updates, bug fixes, backups, and optimizations: CHF 100. - to CHF 500. - per month [1]. -
:
- SEO: CHF 500. - to CHF 3,000. - /month
- Google Ads: CHF 500. - to CHF 2,000. - /month [3]
- : CHF 300. - to CHF 1,500. - /month
-
Targeted campaigns:
Specific campaigns for the Swiss market incur additional costs [2].
Also remember to include indirect costs in your calculations.
Hidden costs to include
Some less obvious costs can have a significant impact on your overall budget.
-
Staff time:
For example, 10 hours per month at CHF 80. - /hour amount to CHF 800. - /month, totaling CHF 9,600. - /year [4]. -
Software subscriptions:
- CRM: CHF 50. - to CHF 300. - /month
- Marketing automation: CHF 100. - to CHF 800. - /month
- Advanced analytics: CHF 50. - to CHF 200. - /month
- Social media management: CHF 100. - to CHF 250. - /month [5]
- Third-party integrations:
"Make sure you connect your CMS, CRM, and marketing automation platforms to streamline follow-ups and create a 'single view of the customer'." - Axon Garside [2]
-
Multilingual localization:
Professional translation: CHF 0.30 to CHF 0.50 per word. -
Legal compliance:
This includes consent management tools, LPD and GDPR audits, and legal consultations: CHF 500. - to CHF 2,000. - /year.
For effective management, compile all this information in a table (for example, in Excel or Google Sheets). Clearly distinguish between one-time expenses and recurring costs and regularly update this document. This approach will help you calculate an accurate ROI and make informed decisions to optimize your investments.
Step 2: Track the results of your website
Once you have assessed your costs, it is time to concretely measure the to determine its profitability.
Define your conversion goals
Conversion goals vary depending on the type of website:
- For an e-commerce site, the goal is clear: to sell. Analyze each transaction, the average basket, and the conversion rate. For example, if you sell Swiss watches online, you could aim for a conversion rate of 2.5% with an average basket of CHF 450. - .
- For a , focus on quote requests, newsletter sign-ups, or appointment bookings. Take a Geneva-based architecture firm, for example: it could aim for 15 consultation requests per month. If 20% of these leads turn into projects worth an average of CHF 25,000. - , each lead is worth around CHF 5,000. - .
- For an institutional site, goals may include brochure downloads, event registrations, or information requests. For example, a Geneva foundation could track registrations for its programs or partnership requests.
If your site is bilingual, assign specific goals to each language version. Document your goals accurately: set a success threshold, assign a monetary value to each action, and identify the necessary tools to measure them. Once these goals are established, use key indicators to track your progress.
Monitor key performance indicators
Key performance indicators (KPIs) help evaluate the strengths of your site. Here are the essential metrics to calculate your return on investment (ROI):
- Traffic and sources: Analyze the number of monthly visitors and identify their origin (organic search, paid ads, social networks, direct access). For example, a website of a Geneva SME can attract between 500 and 2,000 visitors per month. Visitors from organic search often have a better conversion rate than those from social networks.
- Conversion rate: This is the percentage of visitors who perform a specific action. For an e-commerce site in Switzerland, a conversion rate between 1.5% and 3% is considered acceptable. For a B2B site generating leads, a rate between 0.5% and 2% is acceptable.
- Average value per conversion: For an e-commerce site, this is the average basket. For a service site, it is the average value of a contract. For example, if a web agency receives 50 quote requests per month and signs 10 projects at CHF 12,000. - on average, each lead is worth around CHF 2,400. - .
- Customer Lifetime Value: This metric is essential for businesses with recurring customers. For example, a customer spending CHF 200. - per purchase and returning four times a year for three years represents a total value of CHF 2,400. - .
- User engagement: Time spent on the site and bounce rate are good indicators. A high bounce rate (over 70%) may indicate that the content does not meet expectations, while an average time above 3 minutes reflects genuine interest.
For a bilingual site, compare these indicators between the French and English versions. These data allow you to translate your performance into monetary value.
Calculate revenues and other benefits
The mentioned metrics can be translated into concrete results:
- Direct revenues: They are easy to measure. For example, if your cost CHF 1,200. - per month and generate CHF 8,500. - in sales, the link between investment and revenue is clear.
- Indirect revenues: Some visitors discover your business online but finalize their purchase by phone or in-store. Always ask your new customers how they found out about your business. If 40% mention your website, attribute a proportional share of your new contracts to your online presence.
- Savings achieved: An automated contact form or an online FAQ reduces the time spent answering calls. For example, if your FAQ avoids 30 calls of 10 minutes each per month and your hourly cost is CHF 60. - , you save around CHF 300. - per month, totaling CHF 3,600. - per year.
- Brand awareness and credibility: A professional online presence can justify an increase in your rates. If you raise your prices by 5% without losing customers, and your annual turnover is CHF 500,000. - , this represents an additional revenue of CHF 25,000. - .
- Customer data: A base of 2,000 subscribers to your newsletter is a direct channel to promote your future offers.
Combined, these elements give you an overview of the profitability of your site and its contributions to your overall business.
Step 3: Apply the ROI formula
After analyzing your costs and performance, it is time to calculate the return on investment (ROI) of your website. This step transforms your data into a percentage that reflects the profitability of your project.
The ROI formula in detail
The ROI formula is simple and universal:
ROI = [(Gains – Costs) ÷ Costs] × 100
Here's how to define its components: Gains include direct revenues, converted leads, savings achieved, and the value of brand awareness. Costs encompass all investments related to your site, such as initial development, hosting, maintenance, digital marketing, and even indirect expenses like the time spent by your team.
The result, expressed as a percentage, indicates how much each invested franc brings back. For example, an ROI of 200% means that for every franc spent, you get back CHF 3. - in total (your initial investment plus CHF 2. - profit). An ROI of 0% indicates that you reach the breakeven point, while a negative ROI reflects a loss.
This formula applies to all types of websites, whether e-commerce, lead generation, or institutional sites. The key is to assign a realistic value, even to indirect benefits.
Example of calculation in CHF
Let's take a concrete case: an IT services company based in Geneva wants to evaluate the ROI of its bilingual website after a full year of operation.
Total costs over 12 months:
- Site creation: CHF 18,000. -
- Annual maintenance: CHF 4,200. -
- Ads: CHF 18,000. -
- Internal time: CHF 9,600. -
**Total: CHF 49,800. - **
Gains over 12 months:
- 85 leads converted into 22 contracts: CHF 187,000. -
- 15 indirect clients: CHF 95,000. -
- Savings from the FAQ: CHF 38,400. -
**Total: CHF 320,400. - **
Application of the formula:
ROI = [(CHF 320,400. - – CHF 49,800. - ) ÷ CHF 49,800. - ] × 100
ROI = [CHF 270,600. - ÷ CHF 49,800. - ] × 100
ROI = 543%
With an ROI of 543%, every franc invested generates CHF 6.43, meaning the initial investment plus CHF 5.43 in profit. This is an exceptional performance.
Another example: an online store selling Swiss artisanal products. Its annual costs, including the e-commerce platform, maintenance,