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Calculating ROI for SEO is not a dream
Webmasters use Search Engine Optimization for many reasons such as build brand awareness, increase website traffic and to generate leads and sales. I believe that the ultimate goal of SEO for commercial websites is to increase revenue.
Calculating ROI of SEO Campaigns
Measuring ROI can be difficult for SEO. Large e-commerce sites uses software such as Omniture's Site Catalyst or WebTrends 8 todo it. If you use Yahoo or Google analytics you can also work out the revenue and profits coming organic search engine optimization.
Organic SEO v/s Paid Advertising
First of all you should distinguish the sales coming from paid campaigns from those coming from organic SEO. If you are running and Adword campaign, use “Destination URL auto-tagging”. This will allow Analytics to report users that arrive at your site from your ad. If you are running other online campaigns you should manually add tags to the destination URLs in order to identify the campaigns and/or ads that bring more traffic and sales.
Set up your Goals
Setting up goals in Web Analytics is the best way to measure conversions. These goals are not sales but actions that generate leads. Every little action such a phone call has a monetary value. For example, if you receive 100 call requesting information about your services and two of them leads to a £10,000 contract, the value per call should be £ 200. In order to provide an accurate value to these actions, you should keep a daily record with the number of actions and sales carried out. Analysing past data you can work out an average sale value, figure that will make a bit easier all these calculations.
Keep a record of all the actions
It is advisable to keep a daily record of sales, conversions, CTR, calls, emails and actions in general. If your website gets 5,000 visitors (from organic SEO) everyday and you get just an average of 10 enquiries per day, something is wrong. Maybe the meta-titles and meta-descriptions aren’t attractive enough.
A good SEO practitioner should urdersand the visitor’s preferences. He should work close with the web designer in order to create what Bryan Eisenberg calls persuasion architecture. The site must have a easy-to-use navigation that anticipates every visitor needs. Use tracking a Web Analytics tools to try to understand users’ behavior and find the best way to increase your site's sales potential.