6 Factors To Consider While Calculating ROI For Online Catalogs
How do you calculate the ROI of your online catalogs right at the time of planning? Well, this requires proper metrics. If you aren't aware of the actual aspects, it can get perplexing.
However, at Impiger, we have been able to come out with a few important aspects that will allow you to determine the ROI. When it comes to online catalogs, it is crucial to take a few factors into account to help you calculate the ROI of your investments and these include:
1. Cost To Print The Catalogs
The first and imperative factor is to calculate the total cost to get the catalogs printed, which your team is sending out on a yearly basis.
2. Sales People Inputs
Your salespeople can give a lot of inputs on the customers' behavior. They can give you a good sense of how many of them tend to keep the physical catalogs and how many don't feel interested.
3. Existing Customers Additional Revenue
You can also calculate the sales that are coming from your e-commerce website. This helps you determine the business quantum that is coming from your existing customers. Further, determine the returns that your e-catalogs are giving you.
4. No Of People Seeing Your Email & Analytics Dashboard
You can look at the dashboard of your visitors, the time spent by them, the number of pages visited, and their conversion metrics in order to have an idea on how your e-catalog initiative is performing.
5. Purchases From Emails
You can also calculate the revenue that is being generated from new customers, especially the ones that are from emails. This gives you a good indication of the returns.
6. Order Entry Errors = Errors X Cost Per Error
In a physical catalog system, 'errors' is another key aspect to consider. This usually includes the number of mistakes that occur on a yearly basis, the cost to rectify the mistakes, lost business or reduced customer satisfaction, etc. You can then assign a numerical value to the cost of the error and calculate with the formula: Order Entry Errors = Errors X Cost Per Error.