Question

Topic: Research/Metrics

How Can I Articulate Potential Roi For A Website That Doesn't Sell Anything?

Posted by bam on 8/10/2004 at 7:04 PM ET 250 Points
Having made it to the final round of a web redesign pitch for a company who is the largest in their industry, we were informed that we would need to help the marketing department make the case for the endeavour to their CEO.
Vendors of children's products, the company can't (directly) sell online, so our initial proposal made the case for a branding excercise. As their industry's leader, we suggested that anything less than an innovative experience would risk dilluting the brand equity they've built through traditional marketing efforts.
An organization that itslef began as an entrepreneurial effort, they would likely be open to an alternative take on ROI. Any help?
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RESPONSES

  • Posted by Blaine Wilkerson on 8/10/2004 at 7:59 PM Accepted
    The first thing that comes to mind is to make specific offers, discounts, coupons, etc. that are exclusive to the website.

    For example: A 20% off printable coupon that either exists soley on the site and/or has a particular ID code for tracking.

    The same could be applied by creating a database marketing system via opt-in subscriptions to a newsletter. Track the newsletter and the offers, package deals ,etc contained in such.

    Another idea is a loyalty program. Visitors opt-in for a newletter, and in turn receive a loyalty card to use for "points", member discounts, etc. Use your imagination regarding the rewards/benefits to present.

    The data-base marketing aspect is probably the most important selling point. Explain the potential and value of having data on ACTUAL customers vs. potential demographics. The ROI on database marketing is tat least TEN times more than convential. The ability to capture this info via the site is enough justification to keep many eyes glued to your presentation.

    I hope this helps. Feel free to contact me if you require additional service!

  • Posted by Blaine Wilkerson on 8/10/2004 at 8:03 PM Member
    It is also important to segment your conversion and exit stats.

    For example; You will get more valuable information by trcking the different stages/pages in which people decide to sign up leave, or start to sign up then quit rather than measuring simple visitors:sales. Doing so will show you what parts of the site are most attractive to people, and what pages are turning them off. From there, you make adjustments and so on.
  • Posted on 8/10/2004 at 11:46 PM Accepted
    Bam:

    How does the marketing team determine ROI for their direct mail? Advertising? How much do they spend to buy lists? Conduct telemarketing?

    Look at their hot-button issues and build a case for ROI around those issues. For example, maybe they're having trouble creating buzz among retail partners and consumers for their new products. Give them a few scenarios, such as "how much would it be worth to have a list of 5,000 qualified pre-orders for a certain product?

    It might also be helpful to reference other firms in similar positions who (for some reason) find it prudent to invest in their online presence:

    McDonalds
    Smuckers
    Wisk
    Cheerios
    Nike
    CocaCola

    Need we say more :)
  • Posted by bam on 8/11/2004 at 6:35 PM Author
    Thanks for the great replies. They were all useful in their own ways. We'd largely come to the same conclusions–that if you want business metrics, you'll need to identify business problems.
    Thanks again.
  • Posted by bam on 8/11/2004 at 7:12 PM Author
    Oops. Negelected to hand out the goods. I divided them between Blaine and Brian because you each gave me literal examples.
    I've still got a long way to go on this one, but again, your insights were appreciated.
    BAM
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