Estimating an ROI for your SEO campaign is somewhat a difficult task. Did you often hear about ROI during reporting and pitching a client? Want to know what is ROI? ROI is an essential metric than sales and conversions. I told you ROI is an important metric and because of its simplicity and versatility, it becomes a popular metric in today’s world.
Want to measure the Return on Investment of your SEO campaign? Can’t know how to measure? Don’t get worried. This article is about how to calculate the ROI of your SEO campaign.
ROI – Return on Investment:
At first, you have to know what is called ROI. Do you know? ROI is nothing but Return on Investment.
ROI is a profitability ratio that evaluates the income of an investment as a percentage of the original cost. In other words, it determines the performance of the business by dividing net profit by net worth.
Return on investment, or ROI, is the most common profitability ratio. There are several ways to find ROI, but the most commonly used method is to divide net profit by total assets.
For example,
If your net profit is $100,000 and your total assets are $400,000, your ROI would be .44 or 44 percent.
How to measure the ROI of your SEO Campaign?
Today, many SEO managers use different ways to calculate the ROI of an SEO campaign that includes estimating the number of customers coming via organic searches and the customers filling out a contact form on the website.
- Secondly, they use landing pages to collect lead conversions.
- By installing live chat services for salespeople.
Calculating the ROI of any SEO campaign is a frequent problem that most SEO managers face nowadays.
In reality, it is a blanket statement that is hard to calculate.
For example, if someone visits your site and searching for a keyword and then if they walk from your store by buying something.
From this, you cannot analyze the data that customers to organic search. Why? This is because; you’re not sure about how many of them visit and purchase from your store and another thing is that you cannot ask a customer for such details.
You can do the ROI calculation for e-commerce with the help of Google Analytics.
Is calculating ROI Complex?
Do you think calculating ROI is complex? If so, you’re almost right. Measuring the performance of SEO is a complex task.
Steps to follow ineffective ROI Calculation:
What are the steps do I need to follow while calculating the ROI for my SEO campaign? Here are the steps you need to follow when doing the ROI calculation.
1.Distribute the ROI responsibility:
It is the first step in calculating the ROI for an SEO campaign. Almost, all companies have the same buying cycle that is similar as follows:
Awareness à Research à Preference à Purchase à Loyalty
2.Separate brand-specific keywords:
Before calculating SEO efforts, it is important to eliminate company name-specific branded keywords from your analysis. It is best to segregate branded and non-branded keywords. This is because; some of the customers may know your brand, so they simply type your brand during their searches, so there may be less chance that the customers to attribute to your website.
3.Set up your business goals in Google Analytics:
The third step is to set your business goals in Google analytics.
4.Determine customer conversion rate:
This is the most important step in setting up the conversion rate.
5.Know the keyword conversion rate
6.Enable E-commerce tracking system
These are all the steps you need to follow to calculate the ROI of an SEO campaign.
