3 months = $450,000
How to evaluate what you lose by doing nothing!
One of the items we’ve been discussing with new clients a lot lately is estimating their “lost opportunity” with their current sites. If you are considering redesigning your site one of the important factors in your decision making should be what the cost to your company is if you decide to do nothing. We call this factor your “lost opportunity.”
It’s not difficult to calculate or understand what “lost opportunity” is, it’s just that most people don’t consider it when making a decision.
For example, let’s assume you own an ecommerce website with the following characteristics:
- You get 10,000 unique visitors per month.
- You make 1000 sales per month.
- The average revenue from a sale is $200.
You go to your friendly web development company and they tell you that they can increase your conversion rate (sales/visitors) from the current 10% to 15%. You decide you’re going to do it, but you’d like to wait 3 months. What those 3 months cost you? Assuming traffic and average revenue stay the same: $450,000!
If you wait a year, $1.8 million!
Your numbers may be higher, lower, or similar, but the important thing to do is ask yourself two questions:
Am I getting all I can out of my website?
And what am I losing by putting off improvements to my site?
Give us a call and we’ll help you answer those questions.