Research
How We Calculate Local SEO ROI (And Why Our Numbers Are Conservative)
Dr. James Liu
Data Scientist
February 21, 20266 min read
How We Calculate Local SEO ROI
The Revenue Leak Formula
Every business losing local visibility is leaking revenue. Here's how we quantify it:
Monthly Revenue Leak = Missed Impressions × CTR × Conversion Rate × Average Customer Value
Breaking Down Each Variable
Missed Impressions: Using search volume data and your current visibility score, we estimate how many potential customers search for your services but don't see you.
Click-Through Rate (CTR):
- Position 1: 28-32%
- Position 2: 15-18%
- Position 3: 10-12%
- Position 4-10: 2-5%
- Position 11+: <1%
Conversion Rate: Industry-specific data from our database:
- MedSpas: 8-12%
- Restaurants: 15-20%
- Home Services: 10-15%
- Dentists: 12-18%
Average Customer Value: We use conservative industry benchmarks, but you can input your own.
Why Our Numbers Are Conservative
- We undercount impressions — We only count high-intent commercial searches, not informational queries
- We use low-end conversion rates — We assume you have an average website, not an optimized one
- We exclude lifetime value — Our ROI shows first transaction only, not repeat business
Example Calculation: Dallas MedSpa
- Monthly searches for botox/fillers in Dallas: 12,000
- Current visibility: 23% (missing 77% of impressions)
- Missed impressions: 9,240
- CTR if visible: 15%
- Potential clicks: 1,386
- Conversion rate: 10%
- New patients: 138
- Average value: $400
- Monthly revenue leak: $55,200
This is why we say: visibility isn't vanity—it's revenue.
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