How to Measure ROI from Your SEO (Strategies from the Experts in Edmonton, AB
by Aaron Janes, Founder
SEO costs money, no doubt about it.
It depends on your area and industry, but small businesses can expect to pay between $500 and $2,000 monthly on continuous SEO, with larger businesses easily exceeding $5,000.
However, a crucial question is how do you actually know whether your investment is actually paying off? How can you measure your return on investment (ROI) and ensure you're not throwing money down the drain?
In this no-nonsense guide, we'll cut through the fluff and get straight to the point. You'll learn how to:
- Track the right metrics: We'll go beyond vanity metrics like website traffic and dive into the numbers that really matter: conversions, leads, and sales.
- Calculate your SEO ROI: I'll show you the formula and provide practical tips for accurately measuring your return.
- Overcome common challenges: We'll tackle the complexities of attribution and address the time lag often associated with SEO results.
- Maximize your investment: You'll discover strategies to optimize your SEO efforts and ensure you get the most bang for your buck.
By the end, you'll have a crystal-clear understanding of how to measure your ROI, make data-driven decisions, and achieve sustainable business growth.
Nice and simple.
Now let's get to business.
Understanding SEO and its impact on your Edmonton business
Before we dive headfirst into measuring ROI, let's make sure we're all on the same page about what SEO actually is and why it matters so much for businesses here in Edmonton.
SEO is the art and science of making your website more visible in search engine results pages (SERPs).
When someone in Edmonton searches for "best coffee shop" or "website design services," you want your business to be among the top results.
Backlinko reports that the top three Google results get 75% of clicks, so you absolutely want to get your website there.
Now, you might wonder, "Why is SEO so important for my business in Edmonton?"
Well, think about it this way: Edmonton is a vibrant city with a booming economy, but that also means there's a ton of competition. Everyone's vying for attention online, and if you're not showing up in those crucial search results, you're essentially invisible to potential customers.
Here's the thing: SEO isn't just about getting more website traffic.
It's about attracting the right kind of traffic – people who are actively searching for the products or services you offer. And when you capture that targeted traffic, magic happens.
More website visitors translate to more leads, customers, and, ultimately, more revenue for your Edmonton business.
But here's where things get really interesting for us Edmontonians.
Local SEO plays a massive role in driving local customers to your doorstep (or website!). With the right tactics, you can ensure your business is always visible to potential customers in Edmonton.
Optimizing your Google My Business profile, building local citations, and ensuring your website is mobile-friendly are all critical for attracting those nearby customers who are ready to buy.
And how exactly does SEO drive business growth?
It's a chain reaction.
Higher search rankings lead to increased website traffic, leading to more conversions and sales.
And the best part?
It's a sustainable, long-term strategy that delivers results even after your initial investment. That's unlike ad campaigns that completely stop and have no impact after you've stopped running them. With SEO, your investment keeps working for you.
What are the key metrics for measuring SEO ROI in Edmonton?
Now that we've covered the "why" behind SEO, let's get down to brass tacks and discuss how to measure your return on investment.
There are a few key metrics at play that most businesses can benefit from - metrics that certainly impact your bottom line.
Think of these as your SEO report card, giving you a clear picture of what's working and what needs a little extra attention.
Website traffic
First things first, let's talk about website traffic.
While it's not the be-all and end-all of SEO success, it's definitely a good indicator of whether your website is gaining visibility. But here's the kicker: we need to look beyond just the overall traffic numbers.
Organic traffic is where the real magic happens.
This refers to the visitors who land on your website through organic search results – in other words, they found you by searching on Google, Bing, or other search engines.
To track your organic traffic, Google Analytics is your best friend.
This free tool provides a wealth of data, allowing you to see how many visitors are coming from organic search, which keywords they use, and how they interact with your website.
From here, we also need to keep a close eye on your keyword rankings.
Are you climbing the ranks for those coveted keywords related to your business? Improved rankings mean increased visibility, often leading to more organic traffic.
And since you're operating in Edmonton, remember the importance of local search visibility.
Tracking your rankings in Google Maps and local pack results is crucial for attracting those nearby customers. Tools like Ignite's Online Presence Audit, BrightLocal, MozLocal can give you valuable insights into your local search performance.
Conversions and leads
Now, let's talk about the real money-makers: conversions and leads.
It's all well and good getting visitors to your website, but it's useless if those visitors aren't taking action.
This is where goal tracking comes in.
Within Google Analytics, you can set up specific goals to track valuable actions for your business, such as form submissions, phone calls, or online purchases. By tracking these conversions, you can see how effectively your SEO efforts are driving desired actions.
But it's not just about the quantity of leads; it's also about the quality.
Are you attracting qualified leads who are likely to become paying customers? This is where lead scoring can be a game-changer.
And don't forget attribution modeling.
What Is Attribution Modeling? A Quick Explainer for Marketers
This fancy term simply refers to how you assign credit for conversions to different marketing channels. Understanding the customer journey and how SEO contributes to it is essential for accurately measuring your ROI.
Sales and revenue
Finally, let's talk about the bottom line: sales and revenue.
This is where we connect the dots between your SEO efforts and your actual financial gains.
For e-commerce businesses, tracking e-commerce revenue directly attributed to organic search traffic is relatively straightforward. Google Analytics provides detailed reports on transactions, revenue, and conversion rates for organic traffic.
But what about businesses that don't sell products online?
Tracking offline conversions influenced by SEO can be a bit trickier, but it's definitely possible. You can use methods like call tracking, coupon codes, or even surveys to gather data on how SEO is impacting offline sales.
And for a truly comprehensive view of your SEO ROI, we need to consider customer lifetime value (CLTV).
This metric takes into account the long-term value of a customer, including repeat purchases and referrals.
It can cost between 5 and 25 times more to bring in a new customer (through marketing, onboarding, ads, and so on) than to have an existing customer come back to you. Therefore, it pays to keep people around.
By understanding the CLTV of customers acquired through SEO, you can gain a deeper understanding of the long-term impact of your investment.
So there you have it – a breakdown of the key metrics you need to track to measure your SEO ROI.
How to actually calculate your SEO ROI
So, important knowledge stuff out of the way, let's talk about actually calculating your SEO ROI and giving your business something to work with.
I know numbers can sometimes make your eyes glaze over, but trust me, this is important stuff. Remember, understanding your ROI helps you justify your marketing spend, optimize your strategies, and, ultimately, make smarter decisions for your business.
The ROI formula
First, the basic ROI formula.
ROI = (Gain from Investment - Cost of Investment) - Cost of Investment
Seems simple enough, right?
If you spend $1,000 on your business and you make $10,000, you've got an ROI of $9,000, or 900%.
You can also use an online ROI calculator to make things easy.
That said, when it comes to SEO, things can get a little more complex because there are a lot of varying factors. Let's break it down step by step.
Determining SEO costs
First, we need to determine how much you spend on SEO. This can vary depending on whether you're handling SEO in-house or working with an agency.
- In-house SEO involves costs like salaries for your SEO team, tools and software subscriptions, and any resources you invest in for training and development.
- Agency SEO typically involves a monthly retainer fee or project-based pricing. The cost can vary depending on the scope of services, the competitiveness of your industry, and the agency's experience.
Calculating SEO revenue
Now, for the fun part: calculating the revenue generated by your SEO efforts. This can be a bit tricky, as it's not always a direct correlation.
Direct revenue is easier to track, especially for e-commerce businesses. You can directly attribute sales to organic search traffic using tools like Google Analytics.
But what about indirect revenue?
This includes things like brand awareness, lead nurturing, and repeat business that may not be directly tied to a specific sale.
While it's harder to quantify, it's still an important part of the equation. You can use methods like customer surveys, lead scoring, and attribution modelling to estimate the indirect revenue generated by your SEO efforts.
If you're running an email marketing campaign and you offer a 10% discount via a code (which can also be put on your website and the end of blog posts, etc., you can simply see how many times the code was used to track how well your efforts are doing.
Of course, you can also use a professional SEO agency in Edmonton that can handle all this on your behalf. Cough, Ignite. 😉
What are the challenges and considerations in measuring SEO ROI?
Okay, before you get too excited and start celebrating your massive SEO ROI (or conversely, panic about a lack of results), let's talk about some important caveats.
Measuring SEO ROI isn't always a walk in the park, and there are a few curveballs you need to be aware of.
Time lag
First and foremost, remember that SEO is a marathon, not a sprint.
Unlike paid advertising, where you can see results almost instantly, SEO takes time.
It can take weeks, months, or even years to see the full impact of your efforts. A new website takes around 3 to 6 months to rank properly, which can feel like a lot of waiting time.
So, if you're not seeing immediate results, don't throw in the towel just yet. Consistency and patience are key in the SEO game.
Attribution complexity
Another challenge is the complexity of attribution.
In today's multi-channel marketing world, customers rarely interact with your business through a single touchpoint.
They might find you through organic search, then visit your social media page, then click on an email campaign before finally making a purchase.
So, how do you accurately attribute that conversion to SEO?
It's not always easy, but tools like Google Analytics and attribution modelling can help you understand the customer journey and assign credit appropriately.
External factors
Here's something else to keep in mind: your SEO performance can be influenced by external factors beyond your control.
Google's algorithm updates, for example, can shake things up and affect your rankings. Competitor activity can also play a role, as your rivals are constantly vying for those top spots in search results.
Therefore, it's important to stay informed about industry trends and adapt your strategies accordingly.
Data accuracy
Last but not least, remember the importance of accurate data tracking and analysis. If your data is flawed, your ROI calculations will be too.
Make sure you're using reliable tools like Google Analytics, and take the time to understand the data and interpret it correctly.
Now, I know all this might seem a bit daunting, but don't worry. By understanding these challenges and taking a strategic approach, you can overcome these hurdles and accurately measure your SEO ROI.
But here's the thing: SEO isn't just about the numbers. There are qualitative benefits that go beyond the bottom line.
Beyond the numbers: Qualitative SEO benefits
Okay, so we've talked about the hard numbers, the cold, hard cash. But here's the thing about SEO: it's not just about the direct financial return.
There are some serious qualitative benefits that can be harder to measure but are just as valuable to your Edmonton business.
Brand awareness and reputation
Think about it: when your website consistently appears at the top of search results, what does that say about your business?
It screams credibility, authority, and trustworthiness. People naturally assume that the top results are the best, most relevant options.
So, even if someone doesn't click on your website right away, just seeing your name up there builds brand recognition and reinforces your reputation as a leader in your industry.
And in a city like Edmonton, where local businesses thrive on community trust, building that strong online presence is even more crucial. Think of it as your digital storefront – a clean, professional, and easily accessible website makes a great first impression.
Website usability
Here's a hidden perk of SEO: it often forces you to improve your website's usability.
Many SEO best practices, like optimizing page speed, improving navigation, and ensuring mobile-friendliness, also contribute to a better user experience.
And when your website is easy to navigate and enjoyable to use, visitors are more likely to stick around, explore your content, and ultimately convert into customers.
Competitive advantage
Again, Edmonton is mega-competitive between businesses.
Everyone's fighting for a slice of the pie.
But here's the thing: strong SEO performance can give you a serious edge over your rivals. When you're ranking higher than your competitors, you're capturing more of that valuable organic traffic, generating more leads, and ultimately, winning more business.
Long-term growth
Remember, that SEO is an investment in long-term, sustainable growth. Unlike paid advertising, where the results stop when you stop paying, SEO continues to deliver benefits over time.
The content you create, the links you build, and the optimizations you implement all contribute to a strong foundation for your online presence. It's like planting a tree that will continue to bear fruit for years to come.
So, while the numbers are important, don't underestimate the power of these qualitative benefits. They all contribute to a stronger, more resilient business that can thrive in Edmonton's dynamic market.
How to maximize your SEO ROI in Edmonton
And finally, if not the most important part of this process, increasing your ROI over time. The core of figuring out your ROI is so you can see what works and what doesn't, enabling you to double down on what's good and fix what isn't.
Here are a few strategies to get the most out of your SEO investment in Edmonton.
Partner with a reputable Edmonton SEO agency
There's no way around it; SEO can be a complex beast.
It's constantly evolving, with new algorithms, trends, tools, and best practices always emerging. If you're not an SEO expert yourself, it can be overwhelming to keep up.
Especially when trying to run every other part of your business.
That's where partnering with a reputable Edmonton SEO agency can be a game-changer.
A good agency, like Ignite Web Design, brings a wealth of experience and expertise to the table.
They understand the nuances of the local market, they know how to navigate Google's algorithms, and they can develop a customized strategy tailored to your specific business goals.
Look for an agency with a proven track record of success in areas like local SEO, technical SEO, and content marketing.
And don't be afraid to ask questions. A good agency will be transparent about its processes, its pricing, and its expected outcomes.
Focus on high-quality content
Content is king. It's the foundation of any successful SEO strategy.
But not just any content will do. You need to create high-quality, informative, and engaging content that resonates with your target audience in Edmonton.
Think about what your customers are searching for, what their pain points are, and how you can provide valuable solutions. Create blog posts, articles, videos, and infographics that address their needs and establish you as a thought leader in your industry.
And don't forget about local relevance. Incorporate Edmonton-specific keywords, highlight local events, and showcase your connection to the community.
Build local citations
For local businesses in Edmonton, building citations is like spreading the word about your awesomeness. Citations are online mentions of your business name, address, and phone number (NAP) on relevant directories and platforms.
Think Google My Business, Yelp, Yellow Pages, and industry-specific directories.
Consistent and accurate citations help improve your local search visibility and build trust with both search engines and potential customers. It's like having a network of online ambassadors vouching for your business.
Track and analyze your results
Finally, remember that SEO is an ongoing process. It's not a set-it-and-forget-it kind of thing. You need to continuously track and analyze your results to see what's working, what's not, and where you can improve.
Use tools like Google Analytics and Google Search Console to monitor your website traffic, keyword rankings, and conversions. Regularly review your data, identify trends, and adjust your strategies accordingly.
Think of it like fine-tuning a car engine. You need to make adjustments along the way to ensure it's running smoothly and efficiently.
By following these strategies and staying committed to your SEO efforts, you can maximize your ROI and achieve sustainable business growth in Edmonton's thriving market.