Figuring out where to allocate precious resources is challenging especially when there are a large number of options. In many circumstances though, a little bit of data and some quick marketing math can help provide some reasonableness to your decision making.
Let’s look at some data on search engine optimization (SEO) as a marketing channel where your company could allocate more resources.
“A #4 Google search ranking gets 7.3% of Google results page clicks, while the #1 ranking gets 32.8% — 4.5x more,” according to Moz.
Clearly, there is tremendous upside if your company can attain the top search result. But what’s the cost benefit?
If your website occupies the #4 spot for a keyword that generates 100K searches/month, 7.3%, equals 7,300 visitors. At a 7% conversion, you would produce 511 gated content downloads. I recommend doing some scenario analysis too. What do the numbers look like at a higher and lower gated content conversion rate? Also, rather than arbitrarily using 7%, figure out your current gated content conversion. There are multiple factors, including most importantly, the value of your content topic to your intended target audience, that will impact the rate.
According to Salesforce’s B2B Sales Benchmark Research, the average rates for “lead to opportunity” is 13%, and for an “opportunity to a deal” is 6%.
Therefore, 66 become opportunities and eventually, three become deals. If your average deal size is $25,000, you’ll earn $75,000. If you divide your revenue earned by your total website visitors gained, you’ll get a value per visitor of $10.27.
A #1 ranking, on average, generates 32.8% page clicks or 32,800 visitors in our example – a net increase of 25,500.
From a value perspective, your net new value skyrockets to $261,885.
Results? If you invested $80,000 into a content/SEO initiative to attain the top spot for this keyword, you could realize a major gain with an outstanding ROI. Not to mention other growth related to syndicating your content, indirect keyword lifts that drive additional organic traffic plus greater market awareness overall.
This is a simple exercise and doesn’t account for timing, risk, & other variables. IN an economic sense, we are assuming that all others variables are held constant. Experience informs us that this is hardly the case in real-life. Plus – there is no guarantee you’ll gain the top spot. regardless of your content and SEO investment.
BUT – the marketing math makes a content and SEO initiative absolutely worth considering. The calculations provide a through-line to potential results.
In this example, I focused on evaluating an organic growth initiative. However, you can use the same approach for evaluating any new marketing channel initiative. A little marketing math, although simple, can quickly help you determine whether a new initiative is even worth considering.
Finally – I want to leave you with an important next step.
It’s critically important for you (or at least your sales and marketing leaders) to know the numbers! According to a Hubspot study, “The less companies know about their KPIs, the less likely they are to meet their revenue goals. 74% of companies that weren’t exceeding revenue goals did not know their visitor, lead, MQL, or sales opportunities.” If you need help gathering and calculating these numbers – let’s talk now.
Kevin Gold is a B2B acquisition marketing and growth consultant with more than 18 years of executive marketing and business leadership experience. Next Leap Strategy develops and executes customer acquisition programs for industrial manufacturing and technology providers to achieve more consistent and faster leads and sales growth. Contact Kevin for help finding your next customers.