Everyday, more and more people are going online to answer their questions, find products, join groups, or seek out services. For many companies, a website can be as valuable an asset as physical facilities, equipment, or inventory. Websites run 24/7 with as little or as much input as you want. They connect visitors to the information they need, illustrate your value proposition, and close sales. Moreover, a website can be a cost-effective marketing tool and generate leads, build credibility, and provide measurable feedback to achieve success.
Just as you invest in physical assets, it’s crucial to invest in maintaining and optimizing your website to ensure it performs at its peak and contributes to your business’s overall success. To fully appreciate your website as an asset, start by reflecting on what defines any asset. Then, consider how your website aligns with these qualities, and finally, identify strategies to maximize its effectiveness.
What We'll Cover
Unique ways a website behaves as an asset
Let’s begin by examining the key characteristics that define any asset, and then explore how a website can fulfill these criteria. A well-designed website can significantly impact the bottom line through its various features, functions, and effects. By establishing a robust digital presence, it not only generates leads and builds credibility but also offers valuable feedback that drives business success. When optimized effectively, a website becomes a dynamic and indispensable asset, continuously contributing to the growth and profitability of the organization.
It appreciates in value
Your website’s value grows over time as search engines index more of your pages, increasing visibility and organic traffic. As other sites link to yours, your authority and relevance in your industry are enhanced, boosting your search rankings. Additionally, as your site design evolves to consistently reflect and reinforce your brand identity, it deepens customer trust and recognition. Each of these elements works together to make your website an increasingly powerful asset that continues to drive long-term business growth.
… and depreciates in value
Conversely, if your product offerings aren’t regularly updated, if your site becomes outdated in appearance, or if it starts to slow down, its value diminishes. An outdated or sluggish website can frustrate visitors, leading to higher bounce rates and lost opportunities. As a result, it will have less to offer both your customers and your business, potentially eroding trust and reducing your competitive edge in the market. Regular maintenance and updates are essential to keep your website functioning as a valuable, effective asset.
It takes inputs and provides output
Inputs to a website encompass not only content updates and user experience enhancements but also traffic sources like search engines, social media, business listings, and other referral channels. These inputs drive visitors to your site, setting the stage for potential engagement. Outputs, on the other hand, include actions taken by visitors—such as making purchases, requesting consultations, signing up for newsletters, or attending events—collectively known as “conversions.” These outputs are the tangible results of your website’s effectiveness, directly contributing to your business goals and measuring the success of your online presence.
You get out what you put in
Regularly adding new content such as blog posts and product updates, you can keep your website current and provide customers with fresh and engaging content. This can help improve search engine rankings, making it easier for customers to find your website. Moreover, new features or functionality can improve the user experience and make your site more helpful to customers.
What does a website offer specifically?
Looking now at a website’s unique benefits. A website can be a valuable business asset for several reasons. Businesses with a site already may already be familiar with some or all of these benefits:
- Digital Presence: A website is how you “go online” and get in front of people browsing on the internet. Any business without a website is at a disadvantage as potential customers search online for products or services.
- 24/7 Availability: Unlike physical locations with limited hours, a website is accessible around the clock, allowing customers to browse and engage with your business at their convenience. This means customers can access information about your business, products or services at any time as well as from anywhere. This can help to increase sales and customer satisfaction.
- Cost-Effective: A website can be a cost-effective marketing tool compared to traditional marketing channels such as print or broadcast advertising. Your presence can also be updated more easily and quickly at a lower cost. Your site can also amplify those other forms of marketing, directing visitors to your main hub.
- Generates Leads: A website can generate leads via contact forms, newsletter sign-ups, and other methods of collecting information for followup.
- Builds Credibility: A well-designed website can help build credibility for a business. A professional-looking website that is easy to navigate and provides valuable information can help establish your authority and expertise in your industry.
- Measurable Metrics: A website’s analytics tools can gather traffic data such as page views, bounce rates, and conversion rates. This data can be used to measure the effectiveness of marketing efforts and make data-driven decisions.
Ultimately, viewing a website like any other business asset allows you to better ensure that it is contributing to your overall financial success.
Determining the Website ROI
Just as you would invest in physical assets, it is equally important to invest in your website to ensure that it is performing at its best and adding value. Like any other asset, a website represents a financial investment that yields a return. Consider the ways to assess the return on investment (ROI) for a website, and compare it to your other assets:
- Revenue generated: Analyze the revenue generated from the website over a period of time. This can include sales, advertising revenue, or any other sources of income directly tied to the website. Focus on the dollar value here.
- Cost of development: Determine the cost of developing the website, including redesign, custom code development, and content creation. These should be one-time costs that get you “up and running”.
- Cost of maintenance: Calculate the ongoing costs of maintaining and updating the website. Include hosting, premium plugins, domain renewal, content updates, and any other necessary expenses.
- Conversion rate: Analyze the website’s conversion rate, or the percentage of website visitors who take a desired action, such as making a purchase, requesting a quote or joining a newsletter. Unlike the revenue generated, focus on those metrics that may get you closer to the sale.
By analyzing these factors, you can estimate the ROI of your website. You can then make better informed decisions about investing in ongoing website development and maintenance.
Other things to consider
Your web strategy should focus on more than just conversions. Some “soft goals” may include improvements in brand recognition and reputation, increased customer engagement, loyalty, support, satisfaction and retention. These goals may be more difficult to quantify and measure. However, they still have a significant impact on the overall success and profitability of any business.
