A GUIDE TO CALCULATE ROI OF SEO CAMPAIGN WITH GOOGLE ANALYTICS

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Hello there, SEO expert. I hope you are in good health, or should I say good money. Well, my focus today is on the monetary value especially in context to SEO.

We all know that money is a necessity of life. Every working man wants to earn well, eat well, and live well. So in the niche of digital marketing, where people work online to earn good money, many professionals question.

 How to calculate ROI of SEO campaigns?

In general, more search traffic, better ranking, and increased sales are a measure of SEO campaigns. But to know the exact monetary value experts calculate ROI, that is, return on investment. Here is a complete guide that answers how to calculate the ROI of an SEO campaign with Google Analytics:

Before commencing with the steps to calculate ROI of SEO campaigns let’s get some insight into tracking conversions.

E-commerce sites and lead-based businesses differ in tracking conversion. In the former, you have data from transactions that accurately depict how much money one is making from web sales while in the latter you have to assign a monetary value to conversion type.

For e-commerce sites tracking conversion is easy but for lead- business it is most certainly possible.

Nevertheless, whether it is e-commerce or lead- business, conversion tracking is the foremost step to calculate ROI of SEO campaign so let’s know it in detail:

a.  CONVERSION TRACKING FROM E-COMMERCE SITES

Commence with setting up e-commerce tracking in Google. This data is crucial to analyze your overall success irrespective of whether you want to start an SEO campaign or not.

Moreover, this data will provide information about conversion rate, the total number of transactions, average order value, and total revenue. Ultimately you can determine the exact revenue generated on the website.

b. CONVERSION FROM LEAD BASED BUSINESS

Ok I know setting up conversion from a lead-based business is difficult but it’s not impossible my friend.

Just figure out the activities of your clients on your website and how much worth they are and then assign a monetary value to it. For example, if client A fills a request form on your website you can assign it a value of say $100 while $50 to client B who signs up for a newsletter. Thereby you can easily set conversion from a lead-based business.

In Google Analytics these actions are registered as ‘goals’.

c. CALCULATE REAL VALUE OF CONVERSION IN DOLLARS

That explained it’s time to get practical. Learn here how to measure the real value of conversion in dollars.

Suppose your website 100 visitors each month to sign up for daily updates. If 25 of them hire you for a service then the conversion rate is 25%. Now if each of these 25 customers spends $500 then the average value of each sale is.... think man, think... its $500, simple!

Next, use this mathematical formula:

Total number of conversions

The original number of leads

Use this formula for each goal and insert the dollar value to get concrete data for calculating ROI.

The next step to follow to calculate ROI with Google Analytics is to analyze conversion tracking.

After tracking your conversion via the above steps for a month or two, analyze the data and understand what kind of ROI you are getting from SEO.

Run a conversion report through Google Analytics in order to receive data on all your website traffic such as email, paid search, organic search, referrals, social media, etc.

In this report, you will see a tab with a number of conversions along with the value of these conversions. It is the value that tells you how much revenue is generated from each channel.

Finally, compare these values with the money you invested in SEO in the same period of time.

The same rule applies when you calculate the ROI of social media channels and paid advertising.

The third and final step is to calculate the ROI percentage. Here is an easy- peasy formula to do so:

(Gain from Investment – Cost of Investment) / Cost of Investment.

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To see the ROI in percentage form just multiply the result by 100.

Huh, too much of mathematics! Take a break. Go slow, read it step by step. But do read it because these steps tell you the dollars your business is earning and you surely want to be rich enough, don’t you?

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