Customer lifecycle value (LTV)

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The simplest (and generally most effective) method is to calculate:  lead conversion rate Customer LTV is the total amount a customer is expected to spend with your business over the average lifespan of your relationship. And lead conversion rate is the percentage of generated leads that convert into sales. Let's say the average customer lifecycle value is $20,000 and your close rate is 15%. Your target value should be set at $3,000. Of course, we have to make assumptions. However, it is a way to calculate return in a business.

where leads are the primary Middle East Mobile Number List source of conversions. At this point, you know the cost of investing in SEO and the value of your conversions. You are now ready to calculate the ROI of your SEO campaign. 3. Calculate your return on investment Once you have the figures you need, calculating the ROI from your SEO is simple. Use the same formula as before: SEO ROI = (value of conversions - cost of investment) / cost of investment Let's say that in one month, your SEO campaign generated $200,000. And that the cost of the investment was $40,000.




Enter these numbers into your formula: ($200,000 - $40,000) / $40,000 = 4 Which means that for every dollar spent on SEO, you got a return of 4 dollars. In other words, your ROI is 400% (4 x 100 to get a percentage). Not bad is not it ? You can apply this formula to calculate the ROI of your SEO campaign in any period. As long as you know the costs and returns. Predict ROI for your campaigns Now that you know how to measure SEO ROI, you can start thinking in terms of forecasting. Whether you work in-house or at an agency, it's in your best interest to forecast the growth and revenue you hope to generate. In any case, SEO ROI forecasting is extremely important.