ROI / Conversion tracking - calculations
Some of our SEO companies articles:

In order for you to accurately measure ROI (return on investment) we need to calculate how many visitors from referring sites actually convert.
We can help you interpret these figures. You will need to start recording how each enquiry that came to find your service. You can use a basic excel spreadsheet in monthly folders which you could send to us at the end of each month but the choice is yours.
So the first thing to do is any enquirers you get over the phone or email, make sure you ask them how they found you "Google, Yahoo, widgets.co.uk or Wikepedia" and any others that you would like to monitor (referring keywords).
This way each month you will be armed with exactly how many converted visitors the referring site has sent you.
Then we can set the conversion rate, for example:
Widgets.co.uk in Google analytics says 100 visitors were sent to your site. You know that 3 people who came from that site became paying customers.
So the percentage of visitors that have converted is 3%
Average conversion rate should be around 1% - 5%, 10% is considered very good but I should warn you that it could vary dramatically from industry to industry and Website to Website.
Then to work out ROI, you simply calculate how much the cost of widgets.co.uk and off set against the net return you made from the 3% of converted visitors. For example:
Widgets.co.uk costs £100 in month of August
3% of converted visitors net £300 in month of August
ROI for widgets.co.uk in Month of August is 300% return on investment.
If you find that the ROI is at a loss then you have 2 choices:
- Look to see if there is a problem with your conversion rate that could be improved via conversion optimisation?
- Shut down your account with the referring site?
Obviously these figures are just examples and are not meant to accurately reflect the cost of your services.
If you opt in for our ROI tracking service then we will take several measures to simplify the process.
When we set up your Google Analytics / Adwords account we set goals for specific conversions along with data entry from your monthly conversions. This allows us to monitor and report ROI figures along with giving us a clear overview as to whether conversion optimisation is required for your SEO / PPC campaign.