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April 24, 2023

Your Website Is an Operational Cost, Not Just a Marketing Expense

The digital landscape has evolved significantly over the years, and a business’s website has become more than just a marketing tool. It is now an essential component of the organization’s overall operations, providing a vital point of interaction between the company and its customers. Consequently, it is crucial to consider allocating the expenses associated with a website to the operational budget, rather than the marketing budget. Let’s explore some of the reasons that can help reframe the old school of thinking around this investment and get the buy-in from the financially driven stakeholders.

  1. Your website is integral to day-to-day operations — A business’s website is not just a promotional platform but often serves as the primary channel for customer service, sales, and communication. This makes it a crucial part of the organization’s daily functioning, thus justifying its inclusion in the operational budget.
  2. A website requires ongoing maintenance and updates — Unlike traditional marketing efforts, which may be seasonal or campaign-based, a website requires continuous maintenance, updates, and improvements. Assigning website-related expenses to the operational budget ensures that adequate resources are allocated for its ongoing management and optimization.
  3. A website is crucial for customer experience and satisfaction — A well-designed and maintained website contributes significantly to the overall customer experience, which in turn affects customer satisfaction and loyalty. Including website expenses in the operational budget demonstrates a company’s commitment to providing a seamless user experience, positioning the website as an essential aspect of business operations rather than a mere marketing tool.
  4. A website has the potential to impact revenue generation — Turning your website into the ultimate sales tool has all the potential to act as a turbocharger for your business, propelling it forward and improving the bottom line. In many cases, a company’s website serves as a direct sales channel, facilitating e-commerce transactions and generating revenue. By including website costs in the operational budget, businesses can more accurately assess the return on investment and the website’s contribution to overall revenue.
  5. Your website is a central hub for your digital presence — Your company’s website often serves as the central hub for its entire digital presence, connecting various marketing channels, including social media, email marketing, and content marketing. Allocating website costs to the operational budget acknowledges the website’s role as a foundational element that supports and enhances marketing efforts rather than being solely a marketing tool.

Take inventory today of your website and use our list to appreciate its effectiveness in keeping your business running in the new digital landscape. Acknowledging the website’s multifaceted role within the organization can act as a driver to act decisively, find the justification, and gain executive support for reclassifying your business’s website expenses from the marketing budget to the operational budget. Companies that make the shift from the old school of thinking and allocate the necessary resources for maintaining and optimizing their website, reap the benefits of increased revenue and long-term success.

Related Resource

Digital Decoded Podcast: Reclassifying a Website’s Budget From Marketing to Operational

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