The Budget: The average lifetime value of a customer is $450. You know that the average purchase is $35. The business makes 20% profit on all sales. Most returning customers buy once a month. Your current monthly sales are $16,000 with a slight increase when seasons change. A steady increase in sales over six months to a 15% increase by month six would mean a total sales increase of $8,400 over the six months and a total lifetime value of around $30,900. Spending $3,000 on the six-month organic marketing campaign would see a return on investment of 106%. The advantage of organic marketing is that it keeps working even after the campaign has ended. This means that the ROI would actually be higher.
Step #3: Calculate your ROI based on the right performance indicators The performance indicators will depend on the objective you selected in the first step. Want to generate leads? You could track your new subscribers. Want to increase engagement? You could track clicks, comments, shares, etc. Let’s go with the first example: Your goal is customer acquisition. You’ve already set up tracking for sales conversions. It’s time to dissect your organic search traffic.
If we can do that effectively, it is in the best interest of the search engine to serve our content to our target audience for us, providing highly targeted visitors to our pages at no incremental cost. This is the secret to the organic channel, and why organic search listings are so valuable. Other channels often come with additional cost for each new visitor provided.
I think it has become harder and harder for smaller brands to really stand out in any kind of search. This is especially true with small brands who face lots of competition form other small brands in large cities. How does one build name recognition in NYC as an acupuncturists when any given building may house 3 or 4 practitioners with the same address. Then these small businesses are facing the Google Possum filter. And in some cases brands without websites are showing up in the three pack over highly optimized websites.
At our agency, we work with sites of varying sizes, from very large to quite small, and recently, we have noticed a trend at the enterprise level. These sites aren’t relying as much on Google for traffic any more. Not only are they not relying on Google traffic, but also, the sites are getting less than 10 percent (or slightly more) of their organic traffic from the search giant.