November 18, 2011

Return on Investment

I've been meaning to take the pure JavaScript code I had for a former incarnation of a Return on Investment form/calculator and turn it into a more robust application, using the Ajax model and a PHP handler and this weekend I finally got around to it.
The form calculates results on revenue and profit and Return On Investment of a business that increases its number of conversions by 1 %.
I've often thought though that by increasing traffic to your site using methods of SEO those numbers should increase - that your conversion rate will go up if you can get more traffic to your site - but i include a caveat about that. If your site designer didn't do their job of getting calls to action when visitors arrive, then maybe you won't see an increase in conversions. Maybe you will see more traffic but not more business.

As a side effect of using the form, you can judge whether or not you are creating revenue or creating loss based on the value of your product ( the value of a client over the lifetime of the business - client relationship). That is, you can see your bottom line because the marketing costs don't change with respect to conversion rate. The more conversions and the value of the product/client relationship determine the plus side of the equations.

I haven't tackled how to put it into a WordPress Plugin and Ajax call though, that will have to wait for another time. I probably will still make some changes to the thing, though I think it might serve now pretty well...Please check it out and if you find you need to make a comment, I'd love to hear about it.
Just follow the link and test it out. The original inspiration is cited in the post, along with a graphic indicating how it should look using the numbers there, just to double check the validity of the calculations.

In an update later, I will try to define some of the terms that  are being used, but the calculations are all laid out for you in the form.




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