The last time we redesigned the Spork Marketing website, it was accomplished after dragging our feet for almost two years. It was a slow process for us because:
- We lacked focus and direction when it came to deciding on a new layout
- There didn’t seem to be a reason to rush – our old site performed well (or so we thought).
However, when the new website design finally went live, we quickly saw how all of our key metrics — time on site, pages/visit, bounce rate, and conversion rates — improved. This website design continues to work better than our old one. Now, imagine…how much money did we lose by delaying the design for two years?
Improvements We Measured
Looking at our website analytics over just a four-week period, and comparing it to a 4 week period prior to the redesign:
- Average pages viewed per visit went up 10%
- Visit duration went up a healthy 25%
- Bounce rate fell about 8%
- Conversion rates increased a whopping 46% (we also received 1.5 times as many leads as we did before)!!
That last metric is the only one that matters, and it’s also the one that hurts the most. The point: We lost a lot of money by delaying our website update. While every website is different, your company might be losing money waiting to complete that redesign…
How To Calculate The Value Of A New Website
Let’s say that your site sells auto parts, and let’s say that a redesign will improve your website’s conversion rate 10%.
- If your website sells $20,000 in parts, a 10% increase in conversions increases revenue $2,000 a month
- After 12 months, that’s $24,000 in additional revenue
- Most auto parts retailers earn about 30% gross profit on sales, so the additional revenue works out to $6,000 in gross over the year
And if the new website bumps up your conversion rate 20%? Double these numbers. 30%? Triple these numbers.
And so on.
Basically, An Old Website Might Be Costing You Money
Website designs get stale after a few years. When this happens, your conversion rates drop and your company loses money. Just like you would never sell a house without investing in a fresh coat of paint, you shouldn’t let your website design get old and stale.