ROI shows whether your marketing spend pays for itself. If you know what a new customer brings you, you'll quickly see how many customers you need to earn back the cost of your website.
What does this mean in practice?
ROI (Return on Investment) shows how much you earn for every euro you spend. You calculate it like this: revenue minus costs, divided by costs, multiplied by 100 per cent. In marketing, you weigh the cost of a website or campaign against the value of the customers it brings in.
Why does this matter for your business?
ROI shows you whether marketing is an investment or just a cost. You can compare channels and shift your budget to where it brings in the most customers.
Examples and best practices
- Work out what an average customer in your industry is worth.
- Measure how many customers come in through your website and ads.
- Include recurring costs, such as hosting, as well as one-off costs.
- Compare the ROI of your channels every quarter.
How we do it at Ikoon
An Ikoon website costs a one-off €1,250 (Start), €1,950 (Growth) or €2,950 (Complete), plus €35 per month for hosting. Weigh that against what one new customer brings you, and you'll quickly see when your website pays for itself. You order without a deposit and only pay once you're happy. The Lead and ROI dashboard shows your results in numbers.