Measuring ROI for Web Experience Management
The Web is a primary channel for driving sales, customer loyalty, and operational efficiencies. Building an effective Web presence is therefore business-critical. Web Experience Management (WEM) enables a business to manage its Web sites and online promotions to deliver a relevant, engaging Web experience that encourages browsers to become buyers. To ensure your company achieves its business goals online, however, it's important to determine the potential Return on Investment (ROI) when planning WEM projects.
WEM solutions help Web marketers manage content and make the customer Web experience as rich and effective as possible. They enable business users to quickly author and edit Web content, design page layouts, publish online, create targeted Web campaigns and vibrant online communities, and analyze and optimize content effectiveness. WEM supports both revenue generation and operational cost savings by helping companies maximize conversion while speeding up the process of content production.
Making the Business Case for WEM
To determine ROI, define your key business goals and the metrics you will use to measure success. Then combine the potential top- and bottom-line improvements your company can achieve through WEM to find your net dollar benefit. For example, companies can use WEM to drive revenue by:
· Increasing return visits and loyalty through fresh, relevant content and a “sticky” Web experience, leading to higher traffic volume and greater advertising revenue
· Increasing online conversion rates, up-selling and cross-selling with targeted product recommendations and offers encouraging both new and existing customers to make more purchases
· Improving time-to-market, so companies can sooner generate revenue from online campaigns and respond quickly to events and market changes (increasing value for information-based sites)
WEM solutions can also provide significant operational savings by:
· Enabling nontechnical staff to directly manage Web content and campaigns, minimizing the need for expensive IT staff to support routine tasks so their time can be spent on higher-value projects
· Increasing content contributor output through easy-to-use tools for managing a far-reaching Web presence in a centralized, standardized way, dramatically reducing the time needed to create and edit Web content and campaigns
· Increasing customer service efficiency with interactive, personalized and up-to-date support Web sites that encourage customers to go online for self-service, which is much more efficient than call centers
Net benefit and ROI
Compare the projected net benefit for planned WEM initiatives to the total cost of ownership (TCO) for your chosen WEM solution. Calculate TCO by adding software license fees, professional services costs for implementation, and ongoing maintenance and support fees. For increased precision, subtract maintenance costs for any prior WEM systems.
Using the Net Benefit and TCO data points, you can calculate both payback time in months and the annual ROI payback percentage you can expect. These calculations are important components in building a strong business case for investment in WEM and establishing financial goals for it. No matter which approach you choose, continually analyzing your results over time is key in both achieving your business objectives and demonstrating the success of WEM initiatives to your stakeholders.