Sometimes it is difficult to determine the exact monetary value of SEO. Every entrepreneur who thinks about SEO moves face to face with this problem.
A successful SEO marketing strategy usually leads to search traffic and a higher ranking, which leads to sales.
Should a company optimize sales in cash?
The answer is simple: you count on return on investment or return on investment.
First of all, you need to get conversion data from your potential customers.
It is important to understand that tracking conversion (and, therefore, in the end, return on investment) will look different if you sell products and services directly on the site or not. All of these sites must set their own prices for their conversions. As an example, a company hosting cadastral services. Customers do not buy services on the site, but call the company. Therefore, they themselves must calculate the cost of conversion for each service.
Regardless of what type of business you are using, the first step towards ROI is to set up conversion tracking.
By the way, how to increase conversions on the site, read the article.
To do this, you need to set up e-commerce tracking in Google.
Even if you do not plan to launch an SEO campaign, you need this data to determine the overall success (or failure) of your site.
The total transaction rate on your site, the average order value and total revenue.
You can determine the exact amount of income generated on your site.
This is not so difficult, because the site does not have real “transactions” that lead to the receipt of remittances.
That's all you need to do on your site, and how much they cost.
You can estimate it in 100 dollars (how you determine this number will be explained later).
If a potential customer signs up for your newsletter, it can cost $ 50. You can assign a value depending on how much time they spend on your site or how many pages they are viewing.
Google Analytics must have “goal” sections.
Values in the "on" position, and then enter an approximate numeric value.
How do you determine the actual cost of your conversions in rubles / RUBLES
For example, 100 people each month subscribe to your company's newsletter. If the number of these customers is 20%, then the conversion rate is 20%.
If each of these 20 customers spends about $ 500 on services, then the average cost of each sale is $ 500.
Finally, the value of each potential client, the total number of potential clients (people who have subscribed to the newsletter) is determined.
In this example, if you have 20 customers and each of them spends $ 500, you get $ 10,000. $ 100, and you can determine that each of the leaders is worth an average of $ 100.
Do this for each of your “goals” and insert the value in RUBLES so that you get specific data for work and for calculating ROI.
Analyze Conversion Tracking
You can proceed with data verification to see what return on investment you get from SEO.
If you run a conversion report using Google Analytics, you’ll receive data on all of your website traffic (i.e. how many envelopes come from paid search, regular search, emails, referrals, social networks, etc.).
You will see a tab with the specified number of conversions and their cost. In essence, this is the value of how much revenue was received from each search channel.
Compare these values with the amount of money you spent on SEO over the same period of time, and you will begin to understand your ROI.
For example, organic traffic comes from customers entering keywords on Google or another search engine, so this is directly related to SEO.
If your revenue from organic traffic is $ 100,000 per month, and you paid an SEO company $ 20,000 for researching keywords and publishing new content during the same period of time, then your ROI will be $ 80,000.
Once you know the percentage of return on investment, you can calculate how much a particular company needs to invest in SEO.
And with conversion tracking, you can give it to them. ROI, as a rule, varies from month to month, and at the beginning is often negative.
It is important to keep clients informed about progress achieved and provide them with detailed reports on your efforts to optimize SEO and return on investment.
Futureinapps company is engaged in SEO website promotion for business! Reports - every quarter.