In today’s digital era, SEO (Search Engine Optimization) has become a critical aspect of every business’s online presence. It can help increase visibility, drive free organic traffic to your website, and generate leads organically which ultimately results in higher business revenue. However, just implementing SEO techniques might not be enough for a business. It is also important to understand how to measure the ROI of your SEO efforts to determine the effectiveness of your strategies and ensure that you are getting the desired results. By calculating the ROI of SEO, you can identify which strategies are working and which ones need improvement, allowing you to optimize your SEO efforts and allocate your resources more effectively.
What is the Challenge in Calculating the ROI of SEO?
The biggest challenge in calculating the ROI is the inability to provide exact data. Unlike other marketing channels, SEO takes time to show results. There are several factors that are otherwise responsible for impacting your website’s rankings. It can be challenging to determine the exact amount of revenue generated solely from SEO efforts. However, with the right approach and tracking methods, marketers can still estimate the ROI of their SEO efforts.
Steps To Measure ROI of SEO
- Obtaining a Free ROI of SEO Calculator
- Choose Keywords and Track Rankings
- Determine Your Click-Through Rate (CTR)
- Incorporate Your Average Conversion Rate
- Add Your Sales-Qualified Lead (SQL) Closing Rate
- Configure Lifetime Customer Value (LCV) & New Sales
- Calculate Monthly SEO ROI by Adding SEO Spend
Read the blog for a detailed explanation of these steps.
Step 1: Obtaining a Free ROI of SEO Calculator
The first step in measuring the ROI is to download a free ROI calculator or use an online tool that can assist you in determining the necessary data and performing calculations.
Step 2: Choose Keywords and Track Rankings
Identify the keywords you are targeting with your SEO campaign and track your rankings for those keywords. Google Search Console, SEMrush, or Ahrefs are examples of tools that can assist you in monitoring user search queries or keyword rankings .
Step 3: Determine Your Click-Through Rate (CTR)
Determine the click-through rate (CTR) for each keyword you’re targeting. Use Google Analytics or your website’s analytical software to gather this data. Google Search Console is effective in generating the CTR of the website.
Step 4: Incorporate Your Average Conversion Rate
Determine your average conversion rate. This can be the percentage of website visitors who complete a desired action, like making a purchase, filling out a form, or subscribing to newsletters. This can be evaluated using Google Analytics or other analytical software.
Step 5: Add Your Sales-Qualified Lead (SQL) Closing Rate
Determine your sales-qualified lead (SQL) closing rate, which is the percentage of leads generated through your SEO campaign that turned into sales. This data can be gathered from your CRM system or sales reports.
Step 6: Configure Lifetime Customer Value (LCV) & New Sales
Determine the lifetime value of a customer (LCV), which is the total amount of revenue a customer generates for the business over their lifetime. Then, this can be calculated by estimating how long the average customer remains a customer and the average amount they spend. Furthermore, calculate the number of new sales or leads generated through the SEO campaign obtained on the website by appearing in SERP.
Step 7: Calculate Monthly SEO ROI by Adding SEO Spend
Finally, add up the costs associated with your SEO campaigns, such as salaries, software licenses, tool costs, and other expenses. Subtract your SEO expenses from your total revenue generated through SEO. Divide the resulting figure by your SEO expenses to obtain your monthly SEO ROI.
Calculating the ROI can be challenging, but with the right approach and tracking methods, businesses can estimate the ROI of their SEO efforts easily. However, to achieve better results and maximize your ROI, it’s crucial to invest in better SEO services.
To know how SEO is effective in building your brand’s community, check out this blog today.
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