SEO Ranking, Competition and Tactics

Competition doesn’t stand still in competitive markets and the same applies to SEO. There are usually fluctuations in keyword performance, traffic, etc., based on what others do, as well as Google algorithm changes. For example, current trends for 2011 appear to place more emphasis on brands and discount of low-quality content. What follows is a brief overview for the manager in terms of important metrics to consider.

PageRank, Alexa, Keyword Ranking

When looking at SEO performance, there are several popular indicators to track:

These all provide some amount of information, but are partial at best. Other factors need to be considered, especially business metrics.

PageRank is a very crude indicator but it does show relative standing between websites, and is shorthand for generic relevance. Usually inbound links are the main factor contributing to PageRank. Inbound Links (and linking domains) combined with PageRank give a sense of the value of the links.
Alexa data collection is suspect as it relies on browser plugins. Actual impressions in the search engines and actual visits to the website better give a sense of real performance. In addition, and better competitor measures are available, such as PageRank, keyword rank, links and indexed pages.
Keyword Ranking is a proxy for organic traffic from a given keyword based on an estimated clickthrough rate. There are many reasons why a given ranking rises or falls. Inbound links and indexed pages are the two most important metrics.

Still, Keyword Ranking is a very poor indicator of Internet Marketing success, as ranking can go down while customers, revenue and profits increase. There are many possible reasons for this.

Metrics which Matter More

Traffic combined with engagement metrics (pages per visit, time on site) (available in Google Analytics)
Indexed pages (available in Google Webmaster Tools, competitors can be viewed using SEO Site Tools chrome plugin)
Impressions and clickthroughs on organic search (available in Google Webmaster Tools)
Impressions and clickthroughs on paid search (available in Facebook ads and Google Adwords)
Inbound links (available in Google Webmaster Tools, competitors can be viewed on OpenSiteExplorer and Yahoo SiteExplorer)

Metrics which Matter Most

Cost-per-click for SEO and SEM, conversion rates (pct of clicks which turn into customers)
Profit margin per customer, excluding marketing costs
Waste/loss from unsold inventory
Brand awareness (hard to measure, but search on brand name and clickthrough on brand name impressions in Google helps identify this)

What SEO and SEM Can and Cannot Do

SEO can’t fix a bad business model. If the cost of sensible and effective SEO or SEM (advertising) exceeds the profit margin on a per-customer basis, the business model needs examination.
SEO can’t fix a bad website, if product or service information is unclear, prices are hidden, or the text and images are confusing, then the customer won’t understand what is being offered, and won’t buy.
SEO can point out the important factors for managing websites from a search engine perspective, and can help the search engines understand the content, so that it will be deemed relevant to the correct searches.
SEM can help reach potential customers. In addition, SEM can be used to help test out new offers or geographically target.

Strategies and Tactics for SEO

So what can one do if the Alexa, PageRank and Keyword Ranking is below expectations?

Content strategy should be focused on having various types of content that surrounds the brand and offering. Tactics for reuse and leveraging of content magnifies value for cost. Bottom line: Increase the quality and amount of content, and find ways of leveraging the content.
Linkbuilding tactics should be diverse and sustainable. Increase the number and quality of inbound links and ensure that appropriate anchor text is being used (e.g., links with keywords in the linking text).
Social Media tactics need to be included. Social media and social networks help increase referral traffic as well as generate links.

Create and execute an affordable, effective and sustainable set of strategies and tactics and balance this with the inventory and profitability of the business.