You finally set up an SEO strategy and have had it going for a while now. However, a new chance presents itself. You need to know how you perform on the search engine and if your efforts are making a difference. Measuring the ROI can help you measure the impact of your effort. As such, you can see how much traffic, sales, and leads you generated and if you can continue with the same lead generation strategy.
But how exactly can you measure the return on investment of an SEO campaign?
One of the best tools you can use is Google Analytics.
Read on below for more details:
What Metrics are Used to Calculate ROI?
When calculating the return on investment of SEO, you will use metrics such as search engine rankings, goal completions, and organic web traffic to calculate the ROI.
A formula that captures this ideally would be
Gain from the investment – initial investment/cost of investment. - which is why reselling is so important
What Steps Do You Take when Calculating SEO ROI?
You can calculate ROI in three simple steps as outlined below:
Set Up Conversion Tracking
The first step you will need to take entails setting up conversion tracking, which is essential in web design. You do this on Google Analytics. This step allows you to keep abreast with all the site conversions that will result in revenue.
Choose a setup depending on whether you make sales on your site or not.
For instance, if you have a lead-based business, you can set up goals that reflect conversion, like leads from form submissions, and use customer data to assign a dollar value to your goals. On the other hand, an e-commerce store is better off using e-commerce tracking to find data from online transactions and measure their online revenue.
We explain more details below:
Setting Up SEO ROI for Lead Generation
As we have mentioned, getting data on the value generated from a website may be challenging if you are not directly selling products on your site.
In such cases, your data will come from estimates assigned dollar values according to previous sales data.
Go to the Admin panel, then go to view and then goals in analytics. The goals include form submissions, phone calls, and free quote requests. You can then enter estimated values for the conversions in the details section.
Since there are no direct sales, you will realize that the values can be approximate. However, they are good enough to use when tracking progress:
You can determine the value of a sale, lead, and the leads that become customers.
Setting Up ROI Tracking for E-Commerce
You can set up revenue tracking for an e-commerce store using instructions from Google.
When you finally set up E-commerce tracking on your website, you can access the data in the e-commerce overview report. This report has all information related to your online sales and can help monitor the performance and success of your SEO strategy.
You should set up E-commerce tracking for your business or client's immediately, even if you intend to wait to track SEO ROI. If you set up tracking immediately, you will have more data to work with should you decide to analyze it instantly.
Sort Conversions By Channel
After setting up tracking, you will need to track conversions for at least one month before you start tracking your returns from SEO. To do this:
- Go to conversions
- Multi-Channel Funnels
- Assisted Conversions
You will then choose conversions on the top part of the report to see all the conversions on your site within a given timeframe. They will be sorted by the platform that drove them.
For instance, the organic search channel will have the number of users who found your search through search engines like Bing and Google. This is how you know your SEO strategy.
Calculating the ROI
After the second step, you can now calculate the return on investment using the formula we shared in this article's initial part.
(Gain from Investment – Cost of Investment) / Cost of Investment
This can then be multiplied by 100 to see the ROI in terms of percentage.
However, some companies already have established methods for measuring the ROI and can use the same formula to establish ROI for SEO.
For instance, if your company calculates returns based on net profits instead of individual sales, it is best to use the same values for comparison, as anything else will give skewed results.
Are there Other Ways to Measure SEO’s ROI?
Yes, there are other ways to measure ROI with Google Analytics. These reports will help give you a bigger picture of how your SEO strategy is performing.
Assisting Interactions Analysis
Customers tend to visit sites more than once before deciding to convert into buyers, which is something every client should ask themselves. They discover your site on the site engine, spend their time viewing products and services then leave without buying. They will return later, type the URL into their browser, and head to the buying page.
The assisting interactions report will help you trace linked events and show their value in a specific channel so you know precisely how leads convert into customers. You can find this report by clicking on conversions, then multi-channel funnels, and going to the assisted conversions tab.
Top Conversion Paths
This report will also help you trace the interaction path before it becomes a sale. However, it does not show you the direct path of interaction. Instead, it shows you the paths that users take to convert. Through this report, you can have a better idea of the ways through which users interact with tour sites and eventually become leads. After this, you can find the most effective way to structure your campaigns.
Measuring the ROI of your SEO strategy is vital. It shows whether you're making progress as you should. Since SEO is more than just a short-term strategy, you may take time to generate results. You can start tracking progress as soon as one month after making the decision, but you will begin to get returns after six months to a year. Some of the reports that can be helpful include Top Conversions Path and Assisting Interactions Analysis.