How To Calculate ROI On Your SEO Strategy

how to calculate ROI on SEO strategyCalculating ROI on SEO Can Be Easy

Search Engine Optimization, or SEO, is becoming a major part of any businesses digital marketing strategy. For some companies, website optimization has always been a priority.

Search Engine Marketing, or SEM as a whole, should always be a significant part of your marketing plan because people will always turn to a search engine and “Google” a query, to find the answers to their questions, that will solve their problem. But how to calculate ROI on SEO strategy is sometimes a mystery.

Search Engine Marketing includes organic SEO tactics as well as paid search (cpc) products like Google AdWords. It’s much easier to track marketing efforts with the latter.

However, in my opinion, organic website optimization and SEO tactics are vitally important to the success of your website and your business, therefore you should be very interested in calculating the ROI from your SEO strategy.

 

How To Calculate ROI on Organic SEO Efforts

So how do you track the ROI on your basic fundamental SEO efforts and is it even possible? The good news is, YES, it is possible to calculate the return on your SEO and website optimization strategy. Even better, it’s not hard to track organic SEO.

While searching for information on calculating ROI from SEO and social media marketing, I found a really informative infographic from Quicksprout. The information contained below will help walk you through the necessary calculations needed to track the return on your website SEO.

 

Track the ROI From Your SEO Campaign

“Return on investment (ROI) is a key performance indicator (KPI) for search engine optimization (SEO). After all, the ultimate purpose of attracting visitors to a website is to convert them to spending customers – preferably great customers.”

 

SEO & Buying Cycle

Well managed and ongoing SEO website optimization helps your business by helping your customers and prospects find information about your product or services easy and hassle free. Good SEO will help move your customers through the buying cycle.

 

Consumer Buying Cycle

1. Awareness: Find website. Become aware of products and services.

2. Research: Refined searches seeing out detailed info.

3. Preference: Narrowing down info through searching for specific info to confirm final choice.

4. Purchase: Decision is made. Converts to paid customer.

5. Loyalty: Returns to website or brick and mortar location for additional purchases and suggests them to others.

 

ROI Calculation

ROI = LTV – CAC

LTV = Lifetime Value of Customer
CAC = Cost Per Acquisition

For a detailed example on how to calculate the ROI of your SEO campaign, see the example illustrated in the infographic below.

 

Great Customers > Average Customers

What’s the difference between a ‘great’ customer and an ‘average customer’? A great customer is someone who you made extremely happy with their buying cycle and purchase. They recommend your product or service to their network of friends, they engage with your social media content, they actually make your search engine marketing more cost effective in the long run.

To see an illustrated example of how spending more targeted SEO campaigns to acquire great customers can be more cost effective in the long run, see the example below.

=”https://www.quicksprout.com/2014/05/16/how-to-calculate-the-roi-of-your-seo-campaign/”>How to Calculate the ROI of Your SEO Campaign
Courtesy of: =”https://www.quicksprout.com/2014/05/16/how-to-calculate-the-roi-of-your-seo-campaign/”>Quick Sprout

The Wrap

Each and every digital marketing campaign you invest in should come with tracking methods to calculate your return on investment. Whether you’re using inbound marketing, paid search, display ads, or organic SEO, if you’re not tracking the return, how will you know if you’re winning or losing?

To maximize your SEO budget, track your profitable campaigns and alter, edit, massage, or get rid of campaigns and strategies that give you the least return. For more tips & tricks on SEO and SEM check out the useful info at Quicksprout.com.

If you’d like some help with your organic SEO, your paid search/Google AdWords, or any of your digital marketing efforts, I’d be happy to meet with you to discuss your challenges and offer solutions to help you meet your goals. Email me today.

 

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