Cracking the Code: A Step-by-Step Guide to Measuring SEO ROI

The ROI of SEO isn't just about making tons of spreadsheets of data, it's about making money and getting your Brand's name out there. We all know that SEO can make or break an online business and get people digging into your website. I have been working with Edtech, Hospitality, and Networking industry for the past couple of years and pitching SEO campaigns to countless clients. From my experience, I can say that if you're looking to improve your search engine rankings, or if you just want to increase traffic to your site, this article is going to teach you how to calculate the return on investment in search engine optimization campaigns.

Step 1: Create an ROI Calculator for SEO

To get a full picture of the ROI of SEO, you'll need to download a free ROI of SEO calculator. This tool will allow you to:

Perform keyword selection and ranking, so that you can see exactly how much each keyword is worth.

Discover your click-through rate (CTR), which is an important metric for measuring the effectiveness of any paid advertising campaign.

Add all these numbers together, along with your average conversion rate and sales-qualified lead closing rate, to produce an accurate picture of how much money people are spending on their products or services as a result of having been exposed online.

Step 2: Proper Keyword Selection & Ranking

There are several ways to determine which keywords you should be targeting, including using a keyword research tool like KeywordSpy or Google Trends. You can also ask yourself: “What are my competitors doing?”

To impress your client, first, you have to show a list of low-competition and high-search volume keywords. We both know finding that is not going to be easy. Also, high search volume keywords can not assure your sweet traffic anymore. Google is now giving more priority to user search intent than anything. The issue is using keywords that go with user search intent will not be approved by your clients. So what can you do? Try to make them understand the fact or simply use high search volume keywords. After three months of an SEO campaign, you can use those user search intent-based keywords.

Step 3: Identify Your Click-Through Rate (CTR)

The click-through rate (CTR) of your ad is a critical metric that you should be tracking. It’s the percentage of people who see your ad and click on it, and it can be used to determine if you are getting the right kind of traffic.

Here’s how CTR works:

Do you know how many times your ad has been shown, but not clicked on by someone yet? That number would be called ADVERTISING COUNT or AC.

Now we take those same numbers, but instead of counting them as clicks or views (which aren't really what they mean), we count each person who saw our ad as a VIEW+ or V+. So if 10 different people saw our ad? We get 10 * V + 1 = 11 views total—one view per viewer!

Step 4: Use Your Average Conversion Rate

To calculate your average conversion rate, you'll need to know how many people visit your website and convert. This can be done through Google Analytics or by manually tracking which pages users land on and whether they complete a transaction.

If you choose to use Google Analytics as your source of information, make sure that you have at least three months of data available before starting the calculation. Then enter all visits into the "Visits" column in GA. From here, simply divide those numbers by the number of unique visitors (which is likely higher than 100%) to get an estimate for conversion rates per visit:

1 conversion = 1 person who purchased from us during this period;

0 conversions = No purchases were made during this period;

You can then adjust these numbers if necessary based on actual sales figures reported by other marketing platforms such as Adwords or Facebook ads campaigns—or even just using friends' recommendations!

Step 5: Find out Sales-Qualified Lead (SQL) Closing Rate

One of the most important metrics is your sales-qualified lead (SQL) closing rate. This is the percentage of leads that have been converted into sales. It’s also important to note that you can only track this metric for a specific period—which means you need to collect data over time and make sure it’s being tracked consistently.

To calculate your SQL closing rate, simply divide the number of leads closed by those who were qualified by your SEO efforts (i.e., had an opportunity page). Let's say you have 100 leads coming in from organic search traffic but only 10% are completing their purchase at checkout because they landed on an opportunity page instead of downloading an app or filling out a form online; this would mean that 80% of those people who searched online never became customers.

Step 6: Analyze the Lifetime Customer Value (LCV) & New Sales

Let's start with an example. In the leather products industry, lifetime customer value (LCV) represents the total profitability derived from a customer during their engagement with the business. While the standard LCV value commonly used is $10,000, it is worth noting that LCV in the leather products industry tends to be higher, possibly ranging from two to four times that amount. This suggests that customers in this industry have a higher potential for generating revenue throughout their relationship with a company.

A higher LCV usually translates to a higher return on investment (ROI) for businesses. By providing quality leather products and exceptional customer experiences, companies can increase customer loyalty and extend the duration of the customer relationship, thus maximizing their LCV.

I hope this guide has helped you better understand how to measure the ROI of SEO and will help you with your marketing campaigns. If you want to learn more about how to increase your click-through rates, then check out our other blog posts on keyword selection, SEO audits, and keyword research. Feel free to reach out to me at [email protected].?