ROI vs. KPIs

ROI vs. KPIs

To gauge the performance of any online business, a sound Search Engine Optimization campaign will gauge the impact of determined Key Performance Indicators (KPIs) on that business’ Return on Investment (ROI). Both are benchmark metrics to gauge the health of any enterprise. To begin, every business should have a business plan, which includes clearly stated business objectives and the KPIs that will indicate that their business is on track toward achieving an acceptable, if not exceptional, ROI. When creating an effective SEO campaign, only the KPIs that influence business outcomes should be monitored. To be effective, KPIs must be:


Only metrics which are relevant to achieving business goals and objectives should be considered as KPIs. If the business sells a product and also maintains it, the number of products sold is a relevant KPI. The number of units it maintains, is not. A quick relevance check is to gauge if a proposed KPI metrics performance has any impact on the firm’s ROI. When those KPIs that do vary off their projected course, it is understood that corrective action be taken immediately. Or, happily, if the variance is an unexpected uptick in sales, for example, to continue on the existing path without intervening.


KPI performance will reflect a number that indicates at a glance how performance is behaving. That number, such as units sold, will also indicate if the business is on track to achieve stated business objectives.


Indicators provide information about a specific area of a business. When determining a KPI the question should be, what performance is expected of this marker and what action will need to be taken if the KPI fluctuates up or down?


Effective KPIs reflect the objectives the company is carrying out. If the company sells a product, how many units of that product must be sold to break even, or to show a profit? If a KPI is units sold, and it has been determined that a certain number of units must be sold by a given date, then steps must be taken to remediate if the number of units sold falls short by that predetermined date


KPIs need to provide real-time feedback so business owners and planners can readily see any issues as these develop and intervene quickly. If the bulk of one’s revenue is tied to holiday retail sales and pre-holiday sales are lagging, intervention in the form of a promotional sale may be implemented to ensure that revenues are not further impacted.

Achieving a Healthy ROI

Successful businesses do not blindly create business goals and objectives, and then hope that sales figures make their goals a reality. Business needs determine business goals and KPIs indicate if the journey to that destination is going well or needs to be rerouted. It could be stated that if a healthy ROI is the goal of any business, then the KPIs are the means to the end. An example of ROI would be if sales for a given product eclipse the costs incurred to manufacture, warehouse, distribute and sell it. In other words, not just the cost per unit to produce the item, but also the costs incurred throughout the supply chain as well

Who needs an SEO campaign to manage this? Every online business. A professional SEO campaign is effective, accountable and actionable, just like KPIs. Their performance is tracked, gauged, compiled, reported and analyzed. These results are delivered to business clients at regular, timely intervals and explained in detail, as required. Fluctuations are noted immediately and downward metrics are tracked and remediated as necessary. For a confidential consultation regarding a professional SEO campaign that utilizes the right KPIs for your business to achieve a solid ROI, please contact us.