SEO efforts are geared towards improving your rankings
In its most simple form, all your SEO efforts are geared towards improving your rankings in major search engines. The reasoning being that: better ranking results in better traffic; better traffic results in better sales. Now, how do you know if you have reached the top spot? There are many things to keep track of but the main one is “ROI”. ROI stands for “return on investment” and it basically means what you gain back after every dollar spent.
Now, let’s break this down to simpler terms. Before we move on, note that “ROI” does not necessarily mean monetary value, since the opposite would be true. “ROI” on SEO is all about ROI on organic traffic and the conversion metrics you are tracking. If you don’t pay attention to these two things, you won’t realize any ROI until later when your sales start to fall apart and you’re wondering why people aren’t buying your products.
ROI on organic traffic and the conversion metrics
Organic traffic – how do you measure this? You do this by figuring out where your traffic is coming from, who is sending them and how they are driving them. This is known as conversion tracking. It is simple to calculate, but very tedious to implement in a system that will allow you to see your ROI on SEO.
Conversions – this is an important metric and one that Google themselves make very clear in their terms and conditions. This basically means “the number of visitors (hits) that result in potential sales.” So what are your leads and how are they converting? Again, this is pretty easy to calculate with good analytics and a decent knowledge of your niche.
On-page vs off-page – What’s the difference?
All traffic isn’t created equal and each type of visitor has different buying behaviors. So, if you want to know your ROI on SEO then you also need to know your on-page and off-page stats. Do you have a great landing page or a crappy one? Google Analytics will show you everything.
Conversion vs. Non-conversion – Again, all traffic is not created equal. If you want to know your ROI on SEO then you need to track your leads and convert them into sales. There are many great tools out there to track your leads and convert them into sales. Google’s analytics is by far the best for doing this but there are others as well. Your goal is to find the ones that give you the most data to help you calculate your ROI on SEO and then use that data to make adjustments to your PPC campaigns.