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ROI calculators
ROI
Increased productivity
Example
: Reduce drop off rate on the check out submit page.
Pre-design Drop-off Rate:
60 %
Average Order Size:
50
Improvement Cost:
1,000,000
Post-design Drop-off Rate:
40 %
Profit Per Order:
20 %
Expected Project Life:
3 years
Current Monthly Page Traffic:
100,000 views
Change in Monthly Drop-off Rate
= (0.60 - 0.40) x 100,000 = 20,000
Future Gain from Improvement
= (20,000 x 50 x 0.20 x 12) * [(1+0.05)
3
- 1]/0.05 – 1,000,000(1+0.05)
3
= 6,408,375
Total Gain from Improvement
= 6,408,375 / (1+0.05)
3
= 5,535,795
Annual Gain from Improvement
= 5,535,795 / 3 = 1,845,265
Annual ROI
= 1,845,265 / 1,000,000 = 2 : 1
Total ROI
= 5,535,795 / 1,000,000 = 6 : 1
Calculate Decreased Drop-off Rate
Pre-design Drop-off Rate:
%
Post-design Drop-off Rate:
%
Current Monthly Page Traffic:
Average Order Size:
Profit % Per Order:
%
Improvement Cost:
Expected Project Life:
Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI
Compare ROIs
Scenario 1
Scenario 2
Scenario 3
Pre-design Drop-off Rate:
%
%
%
Post-design Drop-off Rate:
%
%
%
Current Monthly Page Traffic:
Average Order Size:
Profit % Per Order:
%
%
%
Improvement Cost:
Expected Project Life:
Year(s)
Year(s)
Year(s)
Total Gain from
Improvement ($)
Annual Gain from Improvement ($)
Annual ROI
Total ROI
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