My secret sauce - How to work out your websites return on investment

In 2012, more than ever, knowing what your return on investment will be on your digital marketing strategy is crucial. Gone are the days when the finance director would sign off on an online marketing budget year on year without being able to measure success. Why? Because many companies didn't see a return and no-one quite knew why.

Many aspects of digital marketing are still looked upon as a dark art shrouded in mystery. Geeks are the new 'cool' because they're able to demystify what's happening online and make sense of it - commercially (great news for me - ha!)

Well, this sunny Friday afternoon I have decided to hand over my own formula. I've been using it for about 4 years and provides me with very good estimates.

Use it wisely. As Spiderman's Uncle Ben says "With great power comes great responsibility". So pull up a comfy chair, and take your time to digest...

...MY SECRECT SAUCE

1. Using the Google external keyword tool punch in the keywords you think people will use when they want to buy your product or service. We want keywords that will make your companies bank balance sing. 
2. The tool will tell you how many people are actually searching for those keywords. More importantly it will list related keywords you've probably not thought of. This tool is great for squashing opinions and internal debates about what keywords to use. (*Let's say you end up with 500k searches each month) 
3. Choose about 5 of those keywords (because in the short term that's probably a good number of keywords to start going for) which have healthy search volumes and then total that monthly figure. You'll now know how many people each month search for your product or service. (*Let's say 50k searches each month for those 5 chosen keywords) 
4. If you have someone who does your search engine optimisation or Google marketing in-house or otherwise ask them to guess-timate how long it might take to rank for those keywords (If they're experienced they'll know). Take an outside view, so if they say 3 months, use 6 months. (*Let's say it costs you £2,000 in time, money or resources)   
5. Now 6 months later, once you're top 5 or 6 in Google for those chosen keywords you can reasonably estimate that 10% of those total searches will hit your website (*So 10% of 50k searches is 5k visitors each month to your website) 
6. The most important number to know now if you don't already is your websites conversion rate. That is the rate at which people visit your website against those who actually convert into a customer or client. If you have no idea, the industry average is still single digits so use 1-5%. (*So 1% of 5k visitors a month is 50 conversions / customers each month) 
7. Work out what the average customer is worth to you (*Let's say £100)
8. Multiply the average value of your customer by the monthly customers / conversions (*So 50 x £100 = £5k)
9. Minus the costs from the conversions (*So £5k - £2k = £3k profit) and you have your return on investment (yippeee!). You can add 20% either way to accommodate for the estimates used. 

Now all you need to do is replace the above with the numbers specific to your business.

That's it! Simple right? Ok I know it might take a little more than a Friday afternoon to get your head around..BUT...It's worth it

The Top 20 Web Resources in 2012 (so far...!)

Web applications have become the love of my life (honestly). I mean, why install it on your computer if you can use it in the cloud for free or a fraction of the cost?

So, with Spring in the air, (never mind the rain) I thought I'd share the love and give you:

...drum roll...

"The Online Genius" Top 20 Web Resources in 2012 (so far!)

1. Encryptur - Password protect your files and send them over the net 
2. Wetransfer - Transfer up to 2GB in style for free 
3. ScreenCast-O-Matic - Record your screen 
4. Fonts Squirrel - Really cool fonts for free 
5. Teamviewer - Share your screen for free 
6. United Conference - Free conference calling with local numbers globally 
7. AndBang - Brilliant team working tool 
8. Fiverr - Get anything done for $5 
9. FamilyFridge - Family organisational tool, free 
10. FreeOCR - OCR anything online for free 
11. Google Drive - Like Dropbox but 2GB, from Google 
12. Online Convert - Convert any file to another format for free 
13. Sumo Paint - Like Photoshop (lite) online 
14. TimeToast - Create cool timelines  
15. Prezi - If you're tired of PowerPoint then this is probably the future 
16. Doodle - Organise a get-together or meeting in a doddle 
17. Hootsuite - Social media's secret weapon  
18. Audio Acrobat - Upload audio and create a player to use anywhere on the web 
19. Thumb.it - Get an opinion about anything in a flash 
20. PDFMyURL - Does what is says on the tin 

Is Social Media Still a "Round Peg in a Square Hole" for Businesses?

Being privy to a number of 'board' level discussions, it's clear that those more experienced members of the business community still view social media as something for kids or 'fun' brands like Coca Cola or Virgin. Not 'real' businesses who have to contend with 'real' world issues.

I do my part to remind them that even though these social networks are the Goliaths they are, they are still 'tools' to be used and controlled as opposed to phenomena which we are powerless against. The usual rebuttal highlights cases where social media has gone wrong or just not well enough. In the same breath however these types of organisations will assign the day-to-day management of their social media to a 'young person' because they 'get it'. True, they get social media, but do they get your business? If they don't that's when it can go wrong. If they do then you're onto a winner.

I'm old enough (believe it or not) to remember when there were no social networks to speak of and it was search engines that everyone was afraid and didn't understand. Now after about 10 years we all 'get it' and realise how our businesses can benefit. Today, it's social networks, tomorrow it will be how your business considers mobile. Now knowing the cyclical nature of technology our default position need not be 'oh no' but 'how can we use this tool to help our business'.

And there are those (believe it or not) who think that the social networks will 'go away'. That again isn't going to happen. If it does I'll eat my iPhone (ahem). In the same way we all know Google will be with us for a lifetime, the same is going to be true of Facebook, Twitter, YouTube and Linkedin. They've all learnt too much, both from their own existence and that of their failed predecessors. As Google have done, they will diversify, grow through acquisition, find themselves in the dictionary and generally surprise us.

For businesses looking to 'future proof' themselves, an important consideration has to be the fact that the next generation will seek to use social media in their business and professional lives more and more. F-Commerce (Facebook Commerce) will become a viable alternative to e-commerce (very soon), Twitter will be the most effective way to digest news and YouTube will make our regularly scheduled TV programming redundant.

So if social media still feels like it doesn't 'fit' within the context of your business, then chances are your trying to use it in the wrong way. The most successful companies across the globe are all very active in social media because they've taken the time to work out the best way to leverage this obviously powerful medium for their benefit and not just to tick a 'we do social media' box.

Adapt so that you're "empowered through interactivity" and not forgotten in history.

Stop what you're doing right now - Innovation on the fly

Innovating on the fly is a challenge. However, as your industry ebbs and flows, the need for you to respond to those subtle or major shifts is becoming more and more of a necessity.

Easier said that done I know. But why? It's normally because the word 'innovation' often throws up images of expensive consultants, off site retreats or caffeine fuelled round tables that we never have enough time for. So instead of looking at innovation as a one off task, view it as a work in progress and a natural part of your companies work flow.

"STOP WHAT YOU'RE DOING RIGHT NOW AND THINK ABOUT HOW YOU CAN DO IT DIFFERENTLY"

We are creatures of comfort, and that's not just relative to our personal existence but that of our business and professional lives. Once we've found a way to do something, we stick to it, become better at it and a few of us might tweak it a little. Most of us are happy with that and even though fundamentally there's nothing wrong with it; staying within your comfort zone doesn't foster the environment required for innovation.

Let's take the office meeting for example. You sit around a table with coffee, tea and a cream cake if you're lucky. You fiddle with your mobile, think about last night or the end of day and try to look like you're listening. The meeting takes far too long and some of us talk too much without really getting to the point (not me of course).

Take STAND UP meetings for example. Now sweeping the Agile software development offices globally (and many non) this method of team meetings described by our favourite encyclopedia:

A stand-up meeting (or simply "stand-up") is a daily team meeting held to provide a status update to the team members. The 'semi-real-time' status allows participants to know about potential challenges as well as coordinate efforts to resolve difficult and/or time-consuming issues. It has particular value in Agile software development processes, such as Scrum, but can be utilised in any development methodology. The term "stand-up" derives from the practise of having the attendees stand at the meeting, as the discomfort of standing for long periods helps to keep the meetings short.

The meetings are usually time boxed to 5–15 minutes and are held standing up to remind people to keep the meeting short and to the point. Most people usually refer to this meeting as just the stand-up, although it is sometimes also referred to as the "morning roll call" or the "daily scrum".

The meeting is usually held at the same time and place every working day. All team members are encouraged to attend, but the meetings are not postponed if some of the team members are not present. One of the crucial features is that the meeting is intended to be a communication vehicle for team members and not a status update to the management or other stakeholders. Although it is sometimes regarded to as a type of status meeting, the structure of the meeting is meant to promote follow-up conversation, as well as identify issues before they become problematic. The practice also promotes closer working relationships in its frequency, need for follow-up conversations and short structure, which in turn result in a higher rate of knowledge transfer - a much more active intention than the typical status meeting. Team members take turns speaking, sometimes passing along a token to indicate the current person allowed to speak. Each member talks about progress since the last stand-up, the anticipated work until the next stand-up and any impediments, taking the opportunity to ask for help.

Team members may sometimes ask for short clarifications and brief statements, such as "Let's talk about this more after the meeting," but the stand-up does not usually consist of full fledged discussions.

So what's the point here. Well you can take something, anything, do it completely differently and squeeze more, time, efficiency, productivity and ultimately profit into your day.

I'll leave you with:

"Creativity is thinking up new things. Innovation is doing new things."— Theodore Levitt

"Innovation is the process of turning ideas into manufacturable and marketable form."— Watts Humprey

"The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams."— W. Arthur Porter

Going to Business 2012?

Well..here's our offer! Hard to resist eh?

Working Online in the Sunshine - Guest Blogger, Eunice Nisbett

The world has gone virtual! A random check of the web will reveal a number of online businesses. In the Caribbean, many persons are looking for ways to earn that extra income in these challenging economic times. Are you one of those?

Have you considered starting an online business?

How do you start and what are your options?

 


1. Before You take The Plunge

Here are seven things you need to do even before you start your business:

(i) Get the buy-in of your Support Group: Consider those significant persons who will be impacted by your decisions; and receive their support.
(ii) Conduct a personal skills assessment: Review your Resumé to identify those areas which you really enjoyed and were passionate about. Use these as a starting point to determine the direction you would like your virtual business to take.
(iii) Determine your Market: Do some research to determine whether there is a need for your services. Do not limit yourself to your local market, for remember virtual is global.
(iv) Select Business Name and Register your Business: What will be your service and/or product offering? (We will discuss online business options in the next section.) Choose a name for your business and register your business as required locally.
(v) Secure Domain Name and develop Website: Once you have chosen your business name check to see whether some form of it is available for a website. Decide whether you will develop your Website or seek professional assistance?
(vi) Equip your home-office adequately: Ensure that your home-office is equipped with the necessary items, hardware and software.
(vii) Let you friends know: Let your friends know that you are a virtual entrepreneur.
 
2. Know your Options

Now that you have conducted your skills assessment you will want to explore your options. Consider these online business options:

(i) Blogging or Writing: Do you have writing skills? Then becoming a freelance writer is one way you can earn an income online. There are a number of article writing sites which will pay you for your articles.
(ii) Managing Virtual Events: Virtual events are on the rise. Webinars, podcasts, and tele-seminars are now the new normal for bringing teams together. This is another great option for an online business.
(iii) Social Media Marketing: Are you familiar with Facebook Pages, Twitter, Linkedin? Then use your skills to help businesses set up their own Pages/Accounts.
(iv) Virtual Assistance: A Virtual Assistant (VA) provides remote administrative support for businesses globally. The virtual assistance industry is relatively new in the Caribbean and there
Eunice Nisbett www.savvyvirtuals.com Page 2
is scope for growth. VA rates vary worldwide. Some VA’s will charge per hour while others offer packages. Some will also vary their rates based on the services they offer.
(v) Website Development: Are you skilled in website development? Then you can build websites for clients and include maintenance packages. Some persons just do not want the headache of figuring out how to build their own website.
(vi) And the list could go on and on. Do your research and examine your options.

3. Get To Work

You have established your business and now need to get to work. You will need to change your mindset from being an employee to being an employer. Here are some tips to get you up and running:

(i) Mentally Get Ready for work. Plan for the next day at the end of your working day or the night before. What assignments will you need to complete? What are the priorities?
(ii) Answer the Telephone Professionally during working hours. Do ensure that you always answer the phone professionally during working hours.
(iii) Set Limits. Knowing that you are working from home, will lead some to believe that you are available to attend to their every whim and fancy. Know when and how to say ’No.’
(iv) Stay Abreast of Technology. Stay abreast of the tools and resources which will increase your
productivity.
(v) Collaborate Virtually. As a virtual worker you will be called upon to be part of
virtual teams. Recognize cultural and time differences.
(vi) Hone your Entrepreneurial Skills. Develop your administrative skills for the day
to day running of your business. Use at least a simple spreadsheet template to
record transactions.
(vii) Service, Service, and then More Service. Let your service differentiate you as a
virtual entrepreneur. Be proactive in meeting your clients needs, offer solutions, and build rapport.

Starting an online business will expand your employment options and can generate additional income. Write a business plan today and get going.

Need information on how to choose a Virtual Assistant for your Business? I invite you to sign up for our Special Report: How to Choose a Virtual Assistant at www.savvyvirtuals.com.

Eunice Nisbett is an independent Administrative Services Consultant/Virtual Assistant and owner of Savvy Corporate Planners+. A savvy, dependable, skilled and dedicated virtual entrepreneur with over twenty (20) years experience in coordinating, planning and supporting operational and administrative functions, Eunice presents a proven track record of professionalism and commitment to excellence. She works with entrepreneurs and corporate institutions globally to provide effective and innovative administrative support solutions to take their businesses to the next level.

Visit us online today at www.savvyvirtuals.com.