If you’re wondering whether investing in SEO is worth it for your business, you’re not alone. Many companies are still determining the true benefits of SEO and how much they should invest in it. 56% of small businesses still need to start utilizing SEO or aren’t sure if it’s part of their marketing approach.
However, SEO is an evergreen and free traffic source that can level the playing field against competitors. The challenge lies in proving the true value of SEO and demonstrating the ROI to your leads or boss.
This article will guide you through the steps to calculate SEO’s return on investment (ROI) using a reliable tool that takes the guesswork out of the equation.
Why Is the ROI of SEO Essential For Businesses?
While SEO offers the lowest cost per lead of any marketing channel and helps to crack the code on organic search, you need to know if those costs will pay off. It’s challenging to spend money on something that may not benefit you. By proving with hard data that SEO is worthwhile, you can convince your leadership team to invest in SEO.
What Are the Challenges of Determining SEO ROI?
Determining the ROI of SEO can be challenging due to several factors. People need to know when or how Google will rank a given website, and there are no assurances with SEO.
Additionally, isolating data can be tricky when pursuing a multi-pronged digital marketing strategy, and SEO is a long-term solution that may seem like progress is at a standstill.
What's the Most Suitable Way to Measure the ROI of SEO?
At Semify, we’ve created an ROI of SEO calculator that takes the guesswork out of the equation. This tool can show you the potential impact of SEO over time and help you demonstrate the profitability of your SEO strategy.
Here are the steps to calculate the ROI of SEO:
Step 1: Download a Customizable ROI Calculator
Begin by downloading a customizable ROI calculator that allows you to input your information and discover how profitable your SEO strategy could be. The calculator should include projections for both 1-month and 18-month timetables to set accurate expectations.
Step 2: Select Relevant Keywords and Determine the Monthly Search Volume
The calculator needs to know which long-tail keywords you plan to target and their monthly search volume to calculate your SEO ROI. Use an SEO keyword research tool to find this information for each keyword.
Step 3: Determine Your Click-Through Rate (CTR)
Your SEO click-through rate is the percentage of users who click on your site after performing a relevant search. The calculator should automatically adjust your CTR based on your ranking position, with the top spot receiving over 25% of organic traffic.
Step 4: Input Your Average Conversion Rate
The conversion rate directs to the percentage of visitors who perform a preferred action, such as completing a purchase or filling out a form. Input your conversion rate into the calculator if you know it; otherwise, refer to an industry-specific conversion rate analysis chart to find the average.
Step 5: Determine Your Sales-Qualified Lead (SQL) Closing Rate
To get the most accurate ROI, input your actual closing rate. Use study data or obtain more precise information from your business or client to make the most accurate calculations.
Step 6: Configure Lifetime Customer Value (LCV) and New Sales
Use a realistic LCV figure to get the most accurate ROI calculation. The calculator will estimate new sales based on your website conversion rate, keyword ranking, and CTR.
Step 7: Input Your Monthly SEO Spend and Get Your Monthly ROI
Input your monthly SEO spend to see how it affects your ROI over time. The calculator will show your monthly ROI, which can be positive or negative depending on your progress.
By following these steps, you can personalize the potential payoff of SEO and demonstrate its value to your team. Personalizing the potential benefits can make SEO feel tangible and easier to sell to others.
Here's Your Opportunity to Establish the Value of SEO
Proving the value of SEO to your leadership team or clients can be challenging, but using an ROI of SEO calculator can make it easier. By personalizing the potential payoff and demonstrating its profitability with hard data, you can show the true value of SEO.
Investing in SEO can be a great way to get ahead of your competition and gain a steady stream of free, organic traffic. By following these steps and using the ROI of the SEO calculator, you can make a convincing case for investing in SEO and taking your marketing strategy to the next level.
Final Thoughts
In conclusion, calculating the ROI of SEO is an important step for businesses that want to invest in this cost-effective marketing channel. While it can be challenging to get granular data for the ROI of SEO, using an ROI calculator can make the process much easier.
By obeying the steps outlined in this article and using a reliable tool, you can estimate the potential impact of SEO on your business over time and make a more convincing case for investing in search engine optimization. By demonstrating the profitability of SEO with hard data, you can convince your leadership team or clients of its value and gain a competitive edge in your industry.
See also: How to Maximize Your ROI: Investing in Paid Advertising and SEO.
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