ROI for SEO: Proving Value to the CFO
You’ve probably heard it before. After weeks of back and forth, everyone’s finally on board with the search engine optimization project. All of the executives are supporting this important initiative, but you as the SEO must still produce some measurable return on investment for your client. So what will you say when, just before the deal closes, the CFO asks the question: what exactly is the ROI of SEO?
Over more than a dozen years as a search engine optimization professional, I’ve heard this question countless times. Anyone in an SEO agency, in-house or consultant position can say the same. The hardest part of an SEO campaign is managing expectations and getting changes implemented. Clients have IT staff who think they know it all (or just do not care) and they fail to implement the recommended changes accurately, promptly, or at all. This “not invented here” push-back is where projects fail to achieve their full potential. And of course the failure is presumed to be that of the SEO company and never the client.
In order to help make the conversation easier the next time around, I thought I’d share how I typically respond to a request like this.
- ROI is our common goal
- A guarantee on specific ROI is impossible on the web
- Improve your odds of success by hiring the best
- Here’s what I can promise
- FAQ: How can I prove the ROI of SEO to my CFO?
I understand the desire for ROI commitments. A defined ROI is the best case for every marketer. We execute every marketing program with an objective of improved ROI because that’s generally what our agency is being hired for and we want our efforts to produce measurable results. With your goals and key performance indicators in mind, we will leverage our knowledge and experience to recommend strategic improvements to your site that would help it operate better than your competition.
Allow us to take a minute to make a point. Nobody (even us) can guarantee ROI results from SEO because of these algorithm updates. We strongly urge anyone considering an SEO company to perform their due diligence, especially when a company makes a guarantee. If a company tries to make such a guarantee, we recommend running far away from that company.
No, there are no guarantees, at least not until I have stock control of Google, and perhaps not even then. Simply put, a guarantee requires enough control to have some chance of success, and nobody has enough control over the search engines or their own competitors to make that statement without it being fraud. I have no control over your developers who may or may not implement my recommendations. And I have no control over a ranking algorithm that search engines have admitted to altering more than 450 times per year. If you are offered a guarantee, it is simply a manipulation tactic — when the company offering a guarantee fails they assume you will not sue them, and their sneaky wording precludes it anyhow (similar to an acts of God clause). When dealing with a moving target, the only guarantee we can make is that our effort will be our best.
It would be unethical for me to promise specific ROI without the control needed to deliver. To make matters more difficult, the CFO request is often that we commit to delivering specific ROI even before we perform a detailed assessment of your site. Without a clear understanding of what is broken and the improvements that should be made to the site, there is no way to know the potential ROI a successful campaign might generate. We do not even know if the needed changes can be made within your site structure or if your Web developers have the time to implement our specified fixes, let alone improvements.
Despite all the uncertainty, you’ve come to the right place. You are hiring the best company because the probability of success increases significantly. This is the same reason certain athletes are paid more than others — bottom line probability of performance. While a promise is out of the question, our results are commonly outstanding. We almost always report traffic growth over 30 percent. Finding the best SEO agency boils down to knowledge, experience and track record — three areas in which we have proven our worth time and again. Ask yourself this: if you hire other than the best why would you expect the best results? Remember, the cheaper you want it, the cheaper you get it.
If you required brain surgery, would you hire the best brain surgeon at the best hospital or hire the cheapest? The best is the best for a reason. Is your company not also worthy of this same consideration?
During an assessment we commonly find many significant problems with a website, and provided that your staff can and will implement our specified fixes to all that we find, I would be shocked if your site does not generate much more traffic than it does today. When projects do not perform well it is generally because the client staff is not embracing SEO as a corporate initiative. If you promise continuing efforts of your company on this project then we will do the same. And we all will win. No promises — just good business with a common goal.
As I’ve said, without the specifics of what we need to change we cannot guess at the percentage of improvement, but with proper client staff support we always see improvement. “Your mileage may vary” is a well known phrase for a reason. But I can promise that we will keep track of the search engines, observe what works today, leverage our knowledge, and advocate strategic enhancements to your site that would help it perform better than your competitors.
In the end, it turns out that is all anyone can promise. With the current technology, it would be unethical for an Internet marketer to specify a guaranteed return on investment because there are too many variables outside of one’s control. Don’t fall prey to SEO agencies that manipulate you by making a ranking or ROI guarantee because in the end you’ll either be disappointed or duped. Instead, hire the best, energetically implement their recommendations and you’ll soon be on your way to a healthy ROI. No guarantees, simply a successful surgery.
Ready to elevate your SEO strategy with a team dedicated to delivering outstanding results? Partner with us, and let’s work together towards achieving your SEO goals, leveraging our expertise and track record for success.
Search Engine Optimization (SEO) is pivotal in driving organic traffic and increasing a website’s visibility. But convincing your chief financial officer (CFO) of the value of SEO can be challenging. Demonstrating your SEO efforts’ return on Investment (ROI) is crucial to securing budget allocations and support from your CFO. As an expert in SEO performance measurement and ROI evaluation, I’m here to provide you with insightful tips and a step-by-step guide on how to prove the ROI of SEO to your CFO.
- Align SEO Goals with Business Objectives
To begin, aligning your SEO goals with your company’s overall business objectives is essential. Clearly articulate how improved SEO rankings and traffic translate into increased revenue, customer acquisition, or cost savings. Be specific about your KPIs, such as conversion rates and customer lifetime value.
- Track Conversions and Attribution
One key method to demonstrate SEO’s impact is tracking conversions and attributing them to your SEO efforts. Implement tools like Google Analytics and Google Tag Manager to monitor goal completions, e-commerce transactions, and conversion paths. Showcase how SEO contributes to these successes.
- Utilize Rank Tracking and Organic Traffic Metrics
Employ SEO-specific tools to track keyword rankings and changes in organic traffic—present data showing how your SEO efforts have improved rankings and driven more visitors to your site. Highlight specific keyword gains and traffic increases.
- Measure User Engagement and Bounce Rates
Demonstrate the effectiveness of your SEO campaigns by measuring user engagement metrics such as time on site, pages per session, and low bounce rates. Show how your strategies are keeping visitors engaged and interested in your content.
- Monitor Cost Reductions
Highlight cost-saving benefits of SEO, such as reduced spending on paid advertising or improved efficiency in content creation. Document how SEO has led to more efficient marketing spending.
Step-by-Step Guide to Proving SEO ROI to Your CFO
- Define clear SEO objectives aligned with business goals.
- Implement tracking tools for conversions and attribution.
- Utilize rank tracking and organic traffic metrics.
- Showcase improvements in keyword rankings and increased traffic.
- Monitor user engagement metrics and reduce bounce rates.
- Prepare a comprehensive report with precise data.
- Use visual aids like charts and graphs for easier comprehension.
- Calculate the lifetime value of acquired customers through SEO.
- Compare the ROI of SEO with other marketing channels.
- Discuss potential missed opportunities without SEO.
- Emphasize long-term benefits, such as brand visibility.
- Provide case studies and success stories.
- Be prepared to address questions and concerns.
- Suggest testing new strategies to improve ROI further.
- Offer to provide regular updates and reports.
- Open the door for collaboration between SEO and finance teams.
- Show how SEO efforts align with the company’s financial goals.
- Explain the risks of not investing in SEO.
- Request a budget based on the projected ROI.
- Be open to negotiations and provide a contingency plan.
Proving SEO ROI to your CFO requires a well-prepared and data-driven approach. Show the ROI of your SEO efforts by aligning SEO with business goals, tracking conversions, and using various metrics. Engage in constructive discussions with your CFO and offer them a step-by-step guide highlighting all of the potential benefits and opportunities SEO brings for the organization – this strategy will ensure they provide adequate budget and support for your efforts.
This article was updated on November 30, 2023.