Website as an effective business platform: how to evaluate the payback period
Website development begins at the time of market analysis, target audience and marketing strategy development. After the vision has been created, according to which the integration of business processes and the site will take place, they begin to draw up the terms of reference and development. The development process is long, more than six months, and during this period only the basic version is created, which in the future will require consistent improvements. Improvements and SEO take about another six months, and during this time there are also adjustments related to the changed business process and new trends.
Is it possible to predict the payback of the site?
The payback of the site is affected by all the same trends that affect sales, including seasonal demand for products. Usually the first two years the site is not profitable, but then all the costs of its creation and support pay off.
To calculate payback, you need:
- Know the exact cost of website development, take into account all costs.
- Determine all business metrics, including sales volume, number of customers, the degree of their involvement, and the income that each new or existing lead brings to the company.
- Find problems and tasks to be solved. This is where analytics is very important. For example, how much will sales decrease if the Yandex filter is not removed from the site? Or how will profits increase if you launch contextual advertising? The necessity and expediency of promotion to the TOP should also be assessed based on the expected financial costs and projected profit.
It must be remembered that all the calculations carried out are a payback forecast, but not a guarantee. Sometimes the timing may be affected by some interruptions in the company's business processes, but not the performance of the site. Modern monitoring of the situation and prompt changes will make your site a real business platform that brings profit.