ROI of SEO: how to calculate it to analyze your impact?

When you think about the SEOyou can't imagine getting a ROI (Return On investment in French). And yet, it is a metric important to analyze for its search engine optimization. have a good SEO means to be visible on the search engines, gain renown and increase salesThere is a correlation between all these data. That is why, within your companyyou must analyze the SEO ROI

See also: SEO points to work on to gain visibility 

Tips for analyzing the ROI of SEO

When you invest in marketing campaigns or in SEO strategiesthey should bring you new customersnew opportunities and new sales

This does not mean, however, that significant financial resources are required. Indeed, you can quite easily work a free natural referencingThis approach requires human resources and an investment of time.

Don't forget: the result of an investment is the profitWhether monetary, material or human, the return on investment must be an element that positively changes your company.

Define the objectives 

Before analyzing the impact of a SEO strategyyou need to look at the objectives to be achieved and determine the KPIs Your approach and actions are aimed at : 

  • Increase sales? 
  • Boost the download of a content? 
  • Generate leads? 

Beyond these objectives, define a time frame. Some of these objectives are strategies can take longer than others, which is why it is essential to use realistic data. The more accurate you can be, the more accurate you can analyze the ROI impact of SEO

Turning to Google Analytics 

Google Analytics is a free tool that provides access to valuable information about the users of your website. If you sell a product or a serviceanalyze the conversion rate, the average basket or the revenues generated. In this case, the calculation SEO ROI is pretty simple. All you have to do is analyze increased sales as a function of marketing activities conducted.

But, if your company aims togenerate leads or the newsletter subscriptionsFor example, if you see a 400 lead gain in four months, you may not necessarily know the monetary value of these shares. The calculation is done in several steps: 

  • Identify the number of new people per month 
  • To obtain the conversion rate of your leadsanalyze those who become your customers
  • Determine the average sales with these leads
  • Then divide the sales number by the total number of leads

Thanks to these new contactsyou can determine the value of each one and the return on investment of your actions. 

See also: our infallible tips to improve your natural referencing

The value of your site's traffic 

To analyze the SEO ROIs, it is also important to consider the cost-per-click basisThis is the price a advertiser The higher the cost, the more interesting it is for your company. company

This means that your website is well positioned in terms of organic search out of some keywordsWith this analysis, you can determine the value of your site's traffic.

Identifying Life Time Value 

Win by new customers costs a company than build loyalty. The objective of a search engine optimization is not to have new customers leaving as soon as they make their first purchase. The main thing is to retain them and turn them into repeat business

To calculate the real SEO ROIyou have to analyze the " life span ", also known as Life Time Value, of your customers

This is achieved by asking you different questions:

  • Did they make a second purchase? 
  • What is the average amount they spend? 
  • What is your company's margin? 
  • How long has the consumer been your customer? 
  • What is its engagement rate? Does it follow your news? Your social networks? 

KING of SEO : calculate a percentage 

Here is the calculation to be done to calculate the SEO ROI ROI = (Gain after investment - costs) / costs X 100

In a concrete case, your company generates 10,000 euros in sales. You decide to boost natural referencing of your site with a budget of 5.000 euros. A few months after the implementation of this strategyyou generate 50,000 euros in sales, so 40,000 euros more. 

To calculate the ROI of SEO dn this case, just calculate: (40,000 - 5,000) / 5,000 x 100 = 700%.

Benchmarking return on investment of this strategy indexing natural is 700%. 

Feel free to use these methods in order to enable your company to analyze the ROI of your SEO strategy. This will allow you to identify the improvements to be made and the actions to be taken in the long term. 

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