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The KEI is a component within the initial keyword analysis and is an important criteria to consider at the time you're choosing

Keywords you want to optimize your site for, and the keyword's competitiveness.

The Keyword Effectiveness Index is a ratio of the # Searches per month over the # of Results per month expressed as a percentage. For example: If the # Searches per month were 10,000, and the # of search results is 1,610,000, then the KEI is 0.62%.

The higher the KEI, the more popular your keywords are, AND the less competition they have. That's a good indication that they are gonna be easier, quicker, and less expensive to optimize than a lower KEI.

However, the KEI can be deceiving. Imagine if there are a low amount of competitors. but they had very strong inbound link profiles, and were optimized to the hilt? You' d might think by only looking at the KEI that you'd be able to perform well on this keyword, but think again. Once you've identified your keyword to optimize for, you'll need to examine at least the top 10 competitors in the SERPs. And, in some cases you' ll see the first 3 pages in the SERPs dominated by very strong authoritative and SEO 'ed websites.

5-Step Method to Choosing Keywords

1) Use a Keyword Generation Tool to build a keyword list of terms your website is related about.

2) Cross reference with keyword data from your web analytics.

3) Identify the keywords with a high enough search volume to make a difference.

4) Narrow the list down to the most specific & relevant terms. Perhaps you already can identify a keyword that has a high conversion rate or ROI from your PPC campaigns. Or, you can see a similar high performing organic keyword from your web analytics.

5) After you've narrowed your keyword list, you can apply the KEI (Keyword Effectiveness Index) to further analyze the keyword competitiveness of each keyword before making your final decision. Although, don't completely rely on the KEI.

Long tail keywords are typically less competitive and easier to optimize for than head terms. Long tail terms should also bring to your site more relevant and interested visitors. But, here's the trick.If you decide to optimize long tail terms, you should use keyword phrases that are common enough that people actually use them, so they generate enough traffic to make a difference.

Depending on your business objectives, SEO budget, and keyword competitiveness, you might choose to go after Head terms instead of the Long tail terms.

"Buying Terms" that are further along in the conversion funnel should improve your chances of getting a better ROI from your SEO campaigns. A long-tail buying phrase like "buy a car stereo online", should provide a better ROI than any Consideration term.

Choosing the right keywords can make the difference whether or not you succeed in your SEO campaigns.