How SEO and Your Keyword Rankings Affect Your Bottom Line
Search Engine Optimization, or SEO, is one of those buzzwords that seem to get thrown around nonstop by every consultant in the website design industry. As a business owner, it can be confusing and difficult to understand the basics of SEO… and most importantly – what are the real-life examples of how this can bring in more revenue to my business. What type of return on investment (ROI) can you expect if you invest in an SEO consultant?
It’s actually much simpler than you think – all you’ll need is the following formula:
(MSV) x (CTR) x (CR) x (CLV) = Monthly Revenue
As explained simply below, this formula shows how much money your business is missing out on if you’re on the bottom of the 1st page or on the 2nd page in Google for keywords that you’re targeting. We’ll use the example of a CPA firm below and explain what each term above refers to.
For this example, we’ll use “Phoenix CPA”
Monthly Search Volume (MSV): How many individuals are searching for a given keyword you’re targeting that someone might search in Google. For our example, “Phoenix CPA” appears in approximately 500 searches per month
Click Through Rate (CTR): Out of those who search “Phoenix CPA” in Google, how many of them click on your website (this is based the below graph and depends on where your website is ranked). For our example, let’s say that the business is the 10th result when you google “Phoenix CPA”
Conversion Rate (CR): Out of those that click on your website, how many of them convert into customers? Using industry averages, we can assume that 4% of those who click on a CPA website will convert into customers.
Customer Lifetime Value (CLV): What’s the lifetime value when you get a new customer in terms of revenue to your business? We’ll use the assumption of $1,000 for a CPA firm.
What You’re Currently Making from the “Phoenix CPA” Keyword
MSV = 500 Searches | CTR = 1.64% (based on 10th organic search result in Google from above graph) | CR = 4% | CLV = $1000
Current Monthly Income from “Phoenix CPA” = (500) x (1.64%) x (4%) x ($1,000) = $328 / month
How SEO Can Impact Your Bottom Line
If you have an old and outdated website and if you have an SEO specialist do in-depth work to raise your ranking from #10 to #3. Additionally, you can easily convert more customers in clients with an updated website presence, so let’s say your conversion rate (CR) moves from 4% to 8%… let’s take a look at how those simple updates impact your bottom line:
Projected Monthly Income from “Phoenix CPA” = (500) x (7.57%) x (8%) x ($1,000) = $3,028 / month
Key Summary Takeaways:
- Paying a consultant to update your website presence and make in-depth SEO updates can provide tremendous upside for your business.
- If your business is currently ranking decently well but not in the top few results, small tweaks could provide exponential growth for the online leads and revenue that your business is bringing in.