- The return on investment (ROI) from a website redesign rests on factors like the cost of the new site, how well it converts visitors into customers, and much more.
- Website ROI can be increased by a redesign through clear call to actions, an enhanced user experience, and by being visually appealing.
- Measuring ROI and its success relative to your business can be easily tracked with the latest tracking software and technology.
Editor's Update 07/07/20:
How can I increase the ROI for my business? There are various ways to improve your ROI speeding on the type of return you're seeking on an investment, e.g. higher sales, more profit, employee retention, increased brand recognition. Here are just some of the ways to increase your ROI:
1. Define what a 'return' means for each investment
2. Get clear on the figures for your current return
3. Assess whether there is room to increase revenues without increasing your costs
4. Reduce your expenses and overheads where possible
5. Be aware and account for the risks of your investment
5. Know that not every investment you make has to have a monetary benefit
How much does a website redesign cost? The average price range for website design in Australia is between $3,000 for a simple site for a small business and $15,000+ for a custom feature-rich site.
When was the last time you updated your website? If it was more than five years ago, it could be time for a re-design. However, one of the most common reasons businesses give for not wanting to re-design their websites is the cost, and how a re-design will influence their website’s overall return on investment (ROI).
But, did you know that a good small business website design can dramatically increase your website’s traffic and the number of users you convert into active clients?
So, what’s involved in a website re-design and how can you make sure the finished project helps you achieve your business goals?
What Factors Affect Your Website ROI?
When you’re running a business a website is never going to be a one-off expense – there will always be costs associated with maintaining it. However, a strong website re-design can help increase the number of conversions made through your site, therefore upscaling your businesses overall profitability.
The Cost of Small Business Website Redesign
There are several factors that contribute to the cost of a website re-design, including:
- Project management
- The cost of the CMS platform
- Any content creation
For instance, say you’re an insurance broker, and you want to build a new website to better target your demographic and increase your conversion rate. A typical insurance broker can expect to spend between $8-10,000 on a website re-design. This figure will cover the cost of a professional digital producer overseeing the work, the skills of a qualified designer who will outline the site’s appearance and functionality, and a programmer that will make the designer’s work possible.
You will also be paying for any relevant web hosting and the CMS platform the website is using, as well as for the creation of new content if you require the services of a copywriter.
So, your $8-10,000, which might sound like a lot, is actually a very reasonable fee.
Website Maintenance Costs
A lot of older websites use out-dated CMS’, which can make maintenance difficult. When you re-design your website with a new, user-friendly CMS, like Wordpress, you’ll notice a reduction in maintenance costs, as you won’t be as reliant on your web developer.
Going back to our insurance broker example, you might have paid for a beautiful new website, but then six months later you start brokering business insurance deals as well as personal insurance. If you hadn’t updated your website, you would have to pay your web developer to add new pages to your website that outline your new service. However, now that your website has been re-designed, you’ll be able to add these pages in yourself, quickly and easily.
Keep in mind that maintenance costs will also need to take into consideration annual fees like web hosting and domain name registration, as well as any ongoing marketing and SEO work, such as Google Adwords and blogging.
To achieve a strong ROI, your website needs to be making conversions. This means people need to be able to find your website in search engines, like Google, and your website needs to be offering them value.
For example, someone searching for insurance brokers wants to land on a website that’s relevant to them and offers the insurance services they need. But getting people to your website isn’t enough, as traffic alone won’t put money in your back pocket.
For your conversion rate to be profitable, you want to make sure the cost per click (CPC) on any campaigns you’re running is relatively low, and you want to know where your traffic is coming from, so you can focus your marketing budget on appropriate channels.
To do this, you need to make sure your website design is attractive and easy to use, so you can reduce your bounce rate, improve user retention, and ultimately, have people contact you, and request your services.
The Website’s Lifespan
The lifespan of a poor-quality website will be significantly shorter than that of a good-quality one. This means that even if you spend more on the design and development of your new website, to begin with, you’ll most likely save money in the long-term as you won’t need to re-design it as quickly.
How to Calculate the ROI of a Website Redesign
Taking all of the above factors into consideration, you can use the following formula to calculate the ROI of your website re-design over time:
ROI = (Gain from investment – cost of investment) ÷ Cost of investment.
You can also use this handy formula to determine the ROI of your website on a month by month basis.
How Can a Website Re-Design Improve Your ROI?
Now that we know what affects a website’s ROI, what steps can be taken to improve it during the re-design process?
Well, there’s a lot you can do to increase user engagement and increase conversion rates, including mobile optimising the site, ensuring the design is appealing to your demographic, and of course, making sure it’s easy-to-use.
When designing a website with profitability in mind, it needs to be visually appealing to your target audience. An insurance broker’s customers, for example, will be looking for a site that looks trustworthy and sensible, while also offering valuable information that is easy to follow and informative.
A website’s design should also include well-planned menus, relatable images, and clear contact points.
Can people easily navigate your site, or do they have to click through five different links just to find information on car insurance?
If your site is difficult to use, people will get frustrated and leave. However, if the navigation is simple to follow and everything they need is right at their fingertips, they’ll be more likely to convert.
Clear Call to Actions
Where’s the contact us button? Is there an enquiry form located front and centre that’s quick and easy to submit? Are your contact details easy to find? A website re-design that’s focused on ROI will look at the placement of these features to maximise your conversion rate.
For example, your contact details should be listed under a ‘contact us’ tab, but it’s also worth having your phone number listed in the top right-hand corner of your homepage.
How Can You Measure the Success of Your Website Regarding Your ROI?
So, you’ve re-designed your website, it looks great, and user testing shows that it’s easy-to-use, but how do you measure the success of your re-design, to determine if it has actually improved your website’s ROI?
Tracking tools, of course.
One of the best parts of new websites and CMS’ like Wordpress, is that they can integrate a range of new tracking tools that older websites don’t have access to.
With accurate tracking, you’ll be able to see how many people are visiting your website, whether they’re coming from Facebook or an organic Google search, how much the average CPC is, what they are and aren’t interacting with, and much more!
From heat mapping and comprehensive reporting tools like Google Analytics, keeping track of all of your website and social media data has never been easier.
Plus, your new tracking tools will let you know if there are any areas of your website you need to work on. For instance, an insurance broker has a page on management liability, but the bounce rate on that particular page is quite high, to try and combat this, you might add in a clearer CTA, tweak the design, or improve the page’s content.
As you can see, a website re-design can work wonders for your business. However, for it to positively impact your ROI, make sure you spend the money and take the time to get your re-design right – you’ll be glad you did three years from now when your website is still going strong!
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