As an SEO and web design agency in the SF Bay Area, we at Slam understand the importance of measuring the return on investment (ROI) of our efforts. After all, what good is all the time, writing resources, and energy put into optimizing a website if it doesn't result in traffic? That's why we're excited to announce the release of our very own tool that helps measure SEO ROI and results: the SEO ROI Calculator.
Why Measure SEO Results?
One of the main challenges of SEO is that it can be difficult to quantify the impact of our efforts. Why? Because unlike other marketing channels, SEO is a long-term game, and results can be measured through metrics like:
- Impressions
- Clicks
- Conversions
- Traffic to site
- Change in keyword positions
That is where our SEO ROI Calculator comes in. This tool allows you to easily track the progress of your SEO efforts and see how they are paying off in terms of increased traffic, leads, and revenue, and the long-term value of your customers.
By entering your data and tracking your metrics over time, you can measure your SEO progress and strategy, while seeing how it’s impacting your bottom line. You don’t need to rely on your SEO agency or consultant to provide you with regular updates and reports. You can see it for yourself here.
How to Measure SEO
After working with small business SEO, nonprofit SEO, and established companies’ SEO for years, we have developed a formula to measure the SEO return on investment.
To make it easier for brands to understand and model the potential outcomes of their SEO strategy, we have created an SEO ROI calculator.
In just a few minutes, you will learn how to forecast the return on investment (ROI) for your SEO project, as well as the costs associated with executing that project.
You will also learn how to forecast the best, middle, and worst-case outcomes for your SEO efforts.
To understand the potential ROI of your SEO project, you can use the following formula:
Total Monthly Searches x Click-Through Rate x Conversion Rate x Average Order Value = SEO ROI.
By inputting these variables and tracking them over time, you can get a clear picture of the potential return on your SEO investment. We’ll go over them in the next section!
What SEO Metrics to Track
This tool allows brands to quickly and easily evaluate the potential return on their SEO investments based on the following:
- Total monthly keyword volume (TMKV) – This is the total amount of potential search volume for the keywords you’re targeting. Keep reading to see how to get this!
- Click-through rate (CTR) – This is the percentage of users who click on your website after searching for a particular keyword or phrase. A high CTR indicates that your website is appearing in relevant search results, and that users find your content relevant and valuable.
- Conversions – This refers to the number of users who complete a desired action on your website, such as making a purchase or filling out a form. By tracking conversions, you can see how well your website is converting visitors into leads or customers.
- Average order value (AOV) – This is the average amount of money spent by a customer during a single transaction on your website. By tracking AOV, you can see how successful your website is at generating revenue.
- Net revenue —This is the total amount of money generated by your website, minus any costs associated with generating that revenue. By tracking net revenue, you can see the overall profitability of your website.
- Lifetime value (LTV) — This refers to the "worth" or value of a customer. We define it as the average revenue that a customer will generate throughout their lifespan as a customer.
Total Monthly Keyword Volume
To get the total keyword volume (TMKV), you’ll need to use an SEO tool like Ahrefs or SEM Rush to conduct the research and identify what keywords you care about.
You can calculate the TMKV by adding up the monthly search volume for each keyword
On Ahrefs, you will need to export your keyword list into Excel and highlight the 'volume' column.
Click-through-rate (CTR)
Click-through rate (CTR) is a measure of the effectiveness of an SEM (search engine marketing/paid Google ads) and an SEO campaign. It is calculated by dividing the number of clicks on a link by the number of impressions (the number of times the link is displayed on Google).
CTR is an important metric to track, because it indicates how well your website is performing in terms of attracting and retaining visitors. A high CTR means that users are finding your website relevant and valuable, and are more likely to take the desired action (such as making a purchase or filling out a form).
There are several ways to easily track CTR:
- Google Analytics: Google’s free website analytics tool that provides traffic, conversion, and engagement data on your website's traffic and performance. In Google Analytics, you can track CTR by looking at the 'CTR' column in the 'Acquisition' > 'All Traffic' > 'Channels' report.
- Google Search Console: A free tool from Google to monitor your search traffic, keywords, pages, while also pulling from your Google Analytics. In Google Search Console, you can track CTR by looking at the 'CTR' column in the 'Performance' report.
- Paid advertising platforms: If you are running paid advertising campaigns (such as Google Ads), you can track CTR by looking at the 'CTR' column in your campaign performance report. By regularly tracking CTR, you can get a sense of how well your website is performing in terms of attracting and retaining visitors, and make adjustments to your strategy as needed.
In October 2022, Brian Dean analyzed CTR data across 1.3M pages and 12M search queries from SEM Rush and Google Search Console, and found that the top result in Google's SEO results typically has an average CTR of 27.6%.
This means that it is 10 times more likely to receive a click compared to a page in the #10 spot. However, the CTR for positions 8-10 was similar, so moving up a few spots on the bottom of the first page may not result in a significant increase in organic traffic. On average, moving up one spot in the search results will increase CTR by 2.8%. However, this can vary depending on the starting and ending positions. For example, moving from position #3 to position #2 may result in a significant boost in CTR, while moving from #10 to #9 may not make a statistically significant difference.
In addition, Dean found that keywords with a length of 10-15 words tend to receive 1.76 times more clicks than single-word terms. URLs that contain terms similar to a keyword also tend to have a 45% higher click-through rate compared to those that do not contain a keyword. Finally, titles with a positive sentiment may improve CTR by approximately 4%.
Conversions
Tracking conversions on any website is important, because it allows you to see how well your website is performing from visitors to actual customers.
Depending on your industry and what you offer, here are the different ways you can measure conversions:
- Google Analytics: Similar to CTR, you can also track conversions by setting up goals and tracking the number of times those goals are completed
- Google Ads: If you are running paid ads, you can track conversions by setting up conversion tracking and monitoring the number of conversions that occur as a result of your campaigns.
- Contact forms: If you have a contact form on your website, you can track conversions on a spreadsheet or connect it to an Airtable form (if you need help setting this up, reach out to us!)
- E-commerce: If you have an online store, you can track conversions by monitoring the number of orders placed. Your copy, site speed, and design can play a big role here!
Average order value (AOV)
You are likely already tracking your average order value (AOV) to measure how much money you’re making per customer.
AOV is calculated by dividing the total revenue generated by your website by the number of orders placed, which allows you to forecast orders, revenue, and profits.
Net revenue
Tracking net revenue allows you to have a clear picture of your profits. It’s calculated by subtracting the costs associated with generating revenue from the total revenue generated.
There are several ways to track net revenue:
- Financial statements: If you are a business, you can track net revenue by reviewing your financial statements (such as your income statement or balance sheet). These documents should provide information on your total revenue, as well as any costs associated with generating that revenue (such as marketing expenses, product costs, or overhead).
- E-commerce platform: If you have an online store, you can track net revenue through your e-commerce platform (such as Shopify or WooCommerce). Most platforms have built-in reports that allow you to see the total revenue generated by your website, as well as any costs associated with generating that revenue (such as payment processing fees or shipping costs).
- Spreadsheets: You can also track net revenue manually by creating a spreadsheet to track your total revenue and costs.
Lifetime Value (LTV)
LTV is a measure that helps a company determine the revenue they can expect to earn from a customer based on the customer's value to the business and their average lifespan as a customer. It is calculated by multiplying these two factors. The LTV helps the company understand the potential revenue they can generate from a customer throughout the duration of their relationship with the company.
Measure SEO Success & Effectiveness With Our SEO ROI Calculator
Our SEO ROI Calculator is a valuable tool for any company looking to measure the results of their SEO campaigns and investments over time. By monitoring these metrics, you’re already ahead of your competitors.
Ready? Check out our SEO ROI calculator now.
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