Will Your Business SEE An ROI With SEO?
We can’t see into the future but we can make some estimations on investing in SEO, PPC, content strategy and other types of digital marketing to see if there is a potential ROI. We’ll use some tools to estimate search volumes and then calculate out our ROI.
Hey, everybody! This is Bill Smith, from Boston SEO Services. Today, we are going to talk a little bit about is it worth it to invest in SEO for your company. So, there’s a couple of things that we can do, there’s a couple of tools that we can use to look at this. We want to make sure that the SEO campaign is going to have a good return on investment over time. So, it does take time for SEO to kick in. We can research the actual search terms and see search volumes and have an estimate on how much potential traffic you can have. But then time-wise, to estimate how long is going to take, we can research your own website to see where it’s ranking.
Best SEO Research Tools
So one of the first tools that you can have access to is called Google Keyword Planner. So if you just googled “Keyword Planner” into Google, you would see this first result, Keyword Research & Strategy. This tool is made for AdWords, but it also has all search volumes that Google let you see.
Google Keyword Planner
So, hold on, let me just get logged into my account here. So I’m logged in. You will need a Google account to get access to the keyword planner, but that’s free. You don’t have to have an AdWords account set up. So we’re just going to start with “Find new keywords and get research volume.” So we’re going to search for new keywords, this one here, and get the search volume. So I’m just going to pretend today that we’re a moving company in Boston. So this would be for a local search. If we were doing a national search, we wouldn’t have the actual modifier as a city. If we had a moving company that was national, we would just put “moving company” and look at that.
Moving Company SEO Example
So we’re just going to get ideas down here. So we can see “moving companies Boston” gets about 2,900 searches a month, but there’s also other ones, right? So we have “moving company Boston,” we can add that to the plan, you can hit “add to plan” here. Boston movers, that seems relevant. Movers Boston MA, with 480. “Moving to Boston,” I don’t think it would be a good one. “Best movers,” that might be a good one. “Cheap movers” if you want to go that way, I’m not going to put it in there, I don’t want to be the cheap moving company. “Moving services.” So we can see all these monthly search volumes here.
I’m sorry, I didn’t show you this, but down this line here, there’s the monthly search volume, this is the keyword, and then this is the suggested bid, so this is the average cost per click if you’re going to use AdWords. We’re just talking about trying to get organic traffic to the website. “Local movers,” we can have that, that’s 210. So we’ll just start with those. Actually, I like this one too, “Boston movers rates.” So that’s somebody looking for prices on moving, right?
Maybe now we could even do moving quotes, right? We can use quotes or pricing, so we can change this idea around. So, this one has 20, we’ll just put that in there. Because if someone is looking for a quote, it has higher buyer intent. So we’ll just go with those.
So, next thing I like to do is I want to download this plan, and I just want to do some– I’m just going to download it as a spreadsheet and do some calculations to see if this is something that would be worth going for. So I’m going to download this plan, I’m going to download it as an Excel CSV. You can just do this with a calculator also, I just like to do it this way. So let me just pop this up for you for a second.
Calculating ROI For SEO
This is what that spreadsheet is going to look like. You don’t have to get too concerned about a lot of this stuff. The things we’re concerned about, really, is the average monthly searches right here. This column. So I’ll just highlight it, actually, I’ll just make it yellow. So we’re going to use that one, average monthly searches, and then we’re looking at the keyword. But we already know– I mean, just so we know the keywords in there, these are the keywords. But really, the main one we’re looking at is the average monthly searches, so we’ll just do a quick Excel formula. I mean, you can just add these up with a calculator too, but I just like to make it easy for myself and just grab these.
Total Monthly Searches
So, all totaled up, these search terms equal over 11,000 searches a month. So that’s the total searches, we’ll just call that total searches. Now, even though those 11,000 searches a month– so, statistically, the number one spot, even if you were number one in Google on the organic search results, so let’s just look at this. So if we typed in, “Movers Boston,” so these are ads, right? These are paid here, you’ve got these three paid ads. These is the map section, and then this is more the organic listings.
Calculating Click Through Rate (CTR)
So who’s number one spot? Even though it’s number one there, in these listings, it gets about 37% of the clicks, and then it just goes down from there, all the way to the bottom. There are more ads here but all the way to the bottom, where that gets 2%. So, I like to keep it in the middle, I like to be pretty conservative. I don’t want to say number one, that’s what we’re aiming for. So instead of saying 37%, we’ll just cut that in half, we’ll call it 18%.
So, let’s do that as a click-through, that would be a click-through rate, it’s what we call the 18%. Let me just pull this up again. So we’re going to use 18% as a click-through rate, so we will do CTR, we’ll call that. And that’s 18%. So then this will be visitors to website. So this is how many people, out of those 11,000 searches, if you were in the middle of the road on page one for all those, how many clicks to the website? So we’re just going to call this visitors, and this will give us a number. We’ll just multiply these, right? We’ll just make this product of these two.
Calculating Conversion Rate
So, out of the 11,000 searches, there are about almost 2,000 visitors to the website, if you were there for all those search terms. So even when there’s visitors to the website, that still doesn’t mean they’re going to be customers. So we can call this conversion, this would be one start of a conversion, right? If somebody contacts you through the website, it doesn’t mean you’re going to get the sale, but it did convert into a contact where you can talk to someone. So, conversion rate, again, we want to keep it– you know, just to be kind of conservative on the numbers, we’ll just say 3%, and we’ll do the same thing. So these are contacts. So we’ll do the same thing again, we’ll make that the product.
And these are things you can control, right? So this conversation, you can control by increasing the conversation rate on your website, and that’s by testing and maybe changing your call-to-action and things like that. So, conversion is something you can control, the traffic, you can control how many people you get out of this, how many results you show up out of these 11,000. You know, close to the top, you’re going to get more clicks, and then conversion. So these are two factors that we can kind of work on. Conversion is taking that traffic that you already have and just maximizing it, right?
So, out of those 11,000 monthly searches, really, if you’re looking at 59 contacts or conversions, so that will be conversions, we’ll just call it. And then even, you know, even at that point, then t’s not hard, but to go from here, then it’s like moving, or any type of service business, it comes down to the sales person on the other end of the line. So, once that happens, your pricing, and the caller’s experience with the person that’s selling. So that can vary, how many sales you’re going to get out of it. I get people telling me 50% a lot. So 50%.
How Many Sales Will I Make From SEO?
And then we’ll just call that sales. We’ll call both of these sales, I guess. Closed. I’ll call this closed for this. We’ll call this sales calls. So then out of that 59, 50%. And why I do it this way is you can play with these numbers after, and you can do a little testing. So you can say, well, what if I increase my conversion rate, right? So what if I increase my conversion rate to 5%? So then it’s going to change everything down the line, right? Click-through rate, so what if I was the top for every search term, we’ll just put 30%. So you can see where it would change everything. So I’ll just highlight these as the ones you can change. This one, and the sales calls, that would be like a sales conversion.
So now, let’s go back to where we were. What did I call this? 18% conversion. 3%. And sales calls we’ll leave there. So now we look at– you know, for moving, and maybe it’s just a one-time thing, so let’s talk value. So we take the average. So, the average lifetime value of the customer, so the average move might be, say, $2500. So now we have $2500, and this is monthly, so then– because if your website is not showing up for any of these, then it will be additional monthly income. So we’ll just multiply this again. So this will be additional monthly income, so it will be an additional monthly income, we’ll put that green, so it looks like money, right? So we know that’s money. So additional monthly income, $74,000.
Now, you’re not guaranteed to make this money. Really, there’s a lot of variables along the line, but it’s a way to at least get an idea instead of going in blindly, and you can use this also for, you know, if you were going to do a pay-per-click campaign, so you’re just looking at your investment, how much does it cost, if it’s a pay-per-click campaign, how much does it cost when you get one customer? So you can look at it that way.
So, that’s it. And then time-wise, so this is kind of what I like to do with a client to make sure that it’s going to make sense for them to invest in this, and then we can look at investment, and the investment can vary depending on competition and the amount of resources needed to move your website up to number one. The other part, the time, timeframe-wise, we weren’t really going to get into it today, but I’ll just go like, we can use the tool like SEMrush, which is a search engine optimization tool, where you can plug-in your own website here. So let’s just say, we’ll just use one of these websites here. I’m just going to go to page two, so I’ll use this AVIV. I’m just going to pump this in.
SEO Research With Semrush
And you can use SEMrush; there’s a free amount of searches allowed, and they kind of limit the keywords you can see and stuff, but let’s just pretend that we’re Aviv Movers, and we’ll hit search. And then we can kind of look at where we are with organic positions already. Now, this tool isn’t perfect, a lot of these tools aren’t perfect, but it’s something that gives us a good idea. So we can see, if this was our website, back in 2011, we were doing really good. This is a graph showing over time. But we want to look at top organic keywords for this website, so we can look here. And you can try to list them by position, and then see if there’s any of those ones that we’re looking at. So we were looking at Boston stuff, but we see Brighton there. Movers and packers Boston, so they are page one for that. That’s low search volume, but. “Moving and storage Boston,” so 210 searches. They’re number 9. But let’s look at some of these ones that are on page two. So, “long distance movers,” so that’s 140 searches. “Moving companies Boston,” that’s a good one, that’s always a good one. 2,900.
So, to push that up, it’s already on page two, it’s close. The closer you get to page one, to the top, the more resources you need, and the slower it moves up. But at least you’re already close. I don’t see the big one there. “Boston movers,” so 22. But it’s better than being not found at all for it, right? So we have some stuff that we can kind of look that. Still not a definite on time, but we can see that for some of these, we’re closer. Time-wise, we can get into that. The time that it takes, there’s a lot of other factors that go into it, so I can’t get into it right now on this one, but we could go over in in another time.
So thanks for taking the time for watching this video, I hope you got a good use out of this spreadsheet. If you want a copy of the spreadsheet, I can kind of just take all this stuff out and leave this here with the formulas. The formulas are simple, but if you want a copy, I can give it to you, so you can use it to calculate your own. Just shoot me a message, and I’ll send it over to you, alright? Have a good day.
- 1 Will Your Business SEE An ROI With SEO?