ROI, the acronym for Return Of Investment, is an essential parameter for those who want to invest in the digital sector. This metric can calculate precisely how much the capital invested in a given activity makes. In this article, we will analyze the concept of Return on Investment, see how to calculate it, and, above all, how to exploit it to grow your e-commerce business.
Managing An E-Commerce Website
Just as an “on-site” commercial activity requires to be managed under various aspects, from the economic one to that of the customers (etc.), in the same way, it is necessary to organize an e-commerce site.
ROI – Return Of Investment
ROI is a figure that measures how much has been obtained, or how much it is possible to get, from an activity, net of the investment that has been made to carry it out. ROI plays a vital role in marketing because it is beneficial to understand if you are spending your money profitably within your business or if it would be appropriate to use the budget in another way.
How To Increase The ROI Of Your Business
To increase the ROI of your e-commerce, there are some simple and effective strategies, and they are all based on the website management dynamics pitted above. Let’s see them in detail.
A secure website is essential to avoid problems that could compromise site traffic, data (yours and users’), and revenue. Possible cyberattack risks causing the site to stop (which will be offline and cannot be visited), infect the device of site visitors, and the phenomenon of phishing (which affects your customers, who risk having personal and compromising data stolen). Regardless of the type of hacker attack, a site malfunction risks generating distrust of your e-commerce and a consequent loss of traffic and ROI.
To avoid these problems, it is necessary to implement an effective security system by setting up a good firewall, scanning for computer viruses, and regular maintenance. The security of a website is also helpful in terms of visibility on search engines. To the detriment of unsafe areas, Google “rewards” safe sites by showing them at the top of user search results. Greater visibility leads to more visitors, who can turn into customers, ultimately increasing ROI.
By the term continuous support, we mean two different but complementary aspects. The license must be provided both to the website and the customers. Site support includes actions such as site design changes, continual plug-in updates, server and data backups, landing page maintenance, etc.
It is essential to keep the website up to date to ensure that page load times are fast and that all plug-ins and page links work correctly. At the same time, it’s essential to ensure fast and efficient customer support because a satisfied customer will be more eager to come back and build loyalty to your brand. These measures guarantee the site more significant traffic and a better ROI.
Site Content Management
Imagine spending every day in front of a shop window that always displays the same goods without ever-changing for months and months. You certainly don’t want to go in and buy. The same thing is valid for e-commerce. Adding new products, content and promotion is a great way to attract potential customers to your site. So be sure to post something new constantly.
However, to improve ROI, pay attention to SEO, the optimization of content for search engines. The latter, in fact, through precise rules, evaluates whether the content you have published is “deserving” or not. Based on these parameters, the new content posted can be very positive for your business or very harmful. Some of the best practices for optimizing your content include researching relevant keywords to base new content, optimizing titles and meta descriptions, having inbound and outbound links, and optimizing the images you upload.
A final aspect to consider concerns the periodic monitoring of the ROI. To maximize revenue, it is essential to constantly analyze the ROI using the formulas indicated above. This practice will allow you to check-in which sectors of your e-commerce you get the highest profit margins and which ones do not perform as expected. Knowing this will enable you to direct your spending towards the sectors with the best profit margins. Ultimately, always having a clear idea of your ROI will allow you to build and optimize the best marketing strategy for your e-commerce needs.
We have provided you with all the essential information to optimize your business strategy based on ROI with this article. For an optimal result, however, we recommend that you contact a team of experts in the sector to provide you with professional support and valuable advice to maximize your ROI.