How to Calculate ROI With Search
Did you know that more than 80% of people who request directions on Google Maps visit in person? That metric ties in very closely with your overall foot traffic and revenue. The more your clients show up in search and the better their listing looks to a potential customer, the more likely the customers will visit, and in turn, the more revenue your client will generate.
Measuring the return on investment your SEO efforts are generating puts its impact into perspective, allowing you to show company decision-makers how much traffic, leads, sales, and more have been attributed to online search.
With Locl, you can quickly see this relationship with our insight called “Calculated Revenue.” It’s calculated by multiplying Direction Requests by 80%, then multiplying by your location(s) Average Transaction Value.
🤳📍x .80 x ATV = 💸
# of Direction Requests x .80 x Average Transaction Amount = Calculated Revenue
Here’s an example: let’s say your client’s business has become a popular tourist destination thanks to high-quality reviews and recent jumps in online search rankings. They saw 50 direction requests per week increase to 100 requests, while the average transaction price increased from $5 to $10 per transaction.
First, let’s calculate the revenue before the hype:
50 Direction Requests x .80 x $5.00 ATV = $200 total calculated revenue.
Now, let’s follow the same equation with the new and improved metrics:
100 Direction Requests x .80 x $10.00 = $800 total calculated revenue.
That’s a huge difference! Your clients have the potential to quadruple their ROI with only 50 more direction requests each week. Calculating the potential or actual return on your SEO efforts is incredibly important when trying to convince or communicate the value of the strategy to a client or colleague.
A well-structured SEO strategy can produce impressive ROI for businesses of all industries – and if yours isn’t where you’d like it to be, Locl can help. Knowing the positive return your efforts are making is powerful information that can be used to get further buy-in for additional investment and showcase the success that your strategy is driving, so calculate and report on it regularly!
Locl equips 1000s of multi-location businesses in marketing agencies to win the trust of consumers with online location profiles that are accurate, consistent, and compelling. Talk to Sales!