The true cost of not investing in SEO

The true cost of not investing in SEO

- That's workin' for ya. And so, I mentioned earlier on that there are tools and systems out there, especially if you have Salesforce as your CRM. And there's others that are out there. This is a report that was generated from InsightSquared. For some of you folks who are using Salesforce and further are familiar with InsightSquared, you don't need to invest in something like that because, again, in the evolution of digital marketing, you're just not there yet, but, And this is, you know, by having your sales reps use Salesforce properly and, you can get reports that look like this, right?

Where you're able to look at it, and again this is what? One, two, three, four step process, much like we looked at before.

You know, for this business, they had x amount of qualified leads that came in, and 70% of them kind of graduated to, you know, you present a solution, of that, you know, 45% were "a technical fit." Of that, here's how many proposals were generated, right? 79% of that.

And of that, sales was able to close 83%, so kind of a different view, different industry, obviously, right? And so the important point is to, one, know that there's tools and systems out there that can give you this type of view and, two, it's really important to know what your conversion rates are because that's a good segway into identifying, all right, from SEO specifically, what can I get based off of people coming from search engines? So, how can SEO impact my business? And for some of you who attended one of our first web clincs that we gave, I talked about this at length.

And it's an important function, right?

All too often, people don't go through the rough math. And it doesn't have to be perfect math. Rough math, cowboy math if you will, on, okay, if I go after x amount of keywords with x amount of volume, and here's how many clicks I get, now I can apply my Demand Waterfall conversion rates. How much revenue, how many sales qualified leads, are at stake? And does it make business sense to even invest in SEO?

And this is one of the things, the calculations, that we like to do as part of our consultation. If at any point you say, "You know, this would be interesting to know." Because maybe your marketing cycle and investment period is coming up, and you think this would be a good calculation, feel free to reach out in the Q&A chat and we'd love to help you out with it.

We're going to walk through this step-by-step applying that marketing Demand Waterfall that we just walked through. A few components that you need to consider when going through this is you need to get the monthly traffic volume.

Ideally, you have your analytics data so you know your raw conversion rate, your qualification rate, your sales accepted all the way to close rate. And, again, if you don't have perfect numbers in place, you can use some of the conversion rates that we offered up. So, going through this a few things that you need to know. One, you need to have the keywords that you care about. Two, you need to know what the monthly search volume is and to get that search volume and, again, we'll do some live analyses at the end here.

And I'll walk you through exactly what tools to use so you can run these numbers on your own if you want to, but here we're taking a look at what, this is just, excuse me, ten keywords or so, and looking at over a million searches on a monthly basis.

Now comes the math part of this. And, again, this is based off of the campaigns that we manage, and so, And if you want to know your exact click-through rate. In other words, for every hundred searches and every hundred times that you show up on Google search results page, on page one, you should at least get a 7% click-through rate, right? And if you want to know your exact numbers, you need to link up your Google Analytics with Webmaster Tools and there's a search engine optimization tab in Google Analytics that you can click through to look at what your click-through rate is on page one for Google organic alone, right?

So what we tend to see and, again, I get your numbers might be a little bit different.

What we're taking 7% of this search volume, so if you wanted to know, "Hey, for my business, keywords that I care about, what might I expect as I get better visibility for these terms?" We're taking 7% of this volume, so a million monthly searches times 7% click-through rate, and, again, this is what we see on average. Yours is going to be different. I explain how to get that number.

Connect Webmaster Tools with Google Analytics and there's a search engine optimization tab that you click through and you can run your filters. If you have questions on that at all, type in the Q&A chat and we'd be happy to help you out with it.

Here's how many new website visitors you're at stake. A good exercise to go through before even investing in a campaign or hiring someone internally or hiring an agency like us, might be, "Does it make business sense at the end of all this?" Because I'm trying to... Let's say you have ten grand to spend on marketing for the year. Of that ten grand, your goal is to drive x amount of deals for sales, right? If you're able to cheaper leads and qualified leads from SEO versus that new trade show that's asking fifty grand just to even have a five by five booth, you might get a better return on this versus, say, doing another trade show.

These are things that you can be more strategic about as you go through this type of analysis.

 

So, 71,000 website visitors are at stake, right? That's an important number. Now we have the top of the funnel type of, all right, here's how many new website visitors I have to my site based off of optimizing for SEO potentially. So, of that, now we apply the inquiry rate.

Remember I said before, anywhere from one to two to 3% on average and we'll talk a little bit more about how to improve that conversion rate.

We're taking, so in other words, for every hundred people that come from organic search, let's take that 3% conversion rates, on the higher end, every hundred people that come to your website from SEO, you should get at least three net new leads. This was, obviously, someone else's business. You're going to have your own, and apply your Google organic conversion rate. So here's how many net new leads are at stake.

For this business, taking a look at these keywords. Of that, just because you're a lead does not mean you're qualified, right? We mentioned that you might want to have a lead development rep or someone on call looking for that budget need, timing, and authority. We're taking on the lower end, right? We said 80/20 rule, so we're taking 15% qualification rate.

Here's how many net new leads are at stake. So, at this point, you might want to stop, right? Because you're saying, "Okay, now I have 269 leads. How much did it take to generate those 269 new leads?" Well, your time, you're hiring someone internally to do this, you need to take into account their salary.

If you're hiring an agency like us, what is the cost for us to run this for you? And now you can do some math. What did I pay for that new lead? And how did that compare to my other investments? So, the trade shows that I'm invested in, the channel marketer that I'm paying, you know, hundred bucks a new lead for.

And how does that compare? For some folks, the math is way better. They're saying, "Wow, if I can get leads at that rate, that would totally blow out any of the other investments that I'm doing." In this case, we're taking a really low close rate, right, 10% and if sales can only close (mumbles) of qualified leads, then I start asking questions like, "Maybe we're being too loose on letting too many leads come in. Maybe we should have that lead development rep ask a couple more questions." Because a 10% rate is on the low end, but we're being conservative here.

Because people come from the Web and who knows, but you've already qualified them, right? So, point being is, depending upon your conversion rate at each stage of the funnel, you can be more stringent and, kind of, tighten up the noose higher up. Or, if you're just getting a trickle out, out of the bottom, hey you might want to, instead of asking for 15 fields, dial that back to maybe four or five, right? 'Cause studies show that that's the easiest way to increase the bottom of the funnel, is by asking for fewer lead requirements fields.

So, we're taking 10% close rate, so 10% of 269, now we have x amount of deals. And, again, if you're really diligent and you want to go all the way through the funnel, you can say, "Okay, 27 times my average sale price, now we got 2.7. Of that, that's the monthly potential return from SEO. Annualize that times 12 months, now you have," And, again, is this perfect math?

Absolutely not. But it's a, A few things can come out of this. One, are you going after the right keywords based off of the search volume? The majority of people that I talk to often don't, right? They go after too top of the funnel heavy keywords that they have no chance in hell in ever ranking for because you'd have to displace IBM, Wikipedia, and Amazon, right?

(laughing) Which probably won't happen in the short run.

Or, conversely, you're too bottom of the funnel heavy. You have keywords that are so exact and so specific that there's, literally, no one searching for 'em, right? And so it's helpful to know, am I going after the right keywords based off of user intent, search volume, and do I have a shot at all to even show up for these keywords? Again, we do a lot of these audits and analyses, and I give you straight feedback."Hey, these are great keywords, you have a shot in displacing them, and your competitors that are doing SEO, doesn't look like they're all that sophisticated. You have a shot." So, let's go through the Demand Waterfall conversion rates and, yeah, it looks like it does make business sense. All right, so--.

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