Keyword tracking allows a site owner to know what keyword searches are  resulting in sales. Search term information can be logged into a  database and presented to web site owners in a meaningful format. This  data can be used to see which keywords are producing the most sales per  search and to determine where to focus web marketing.
What Search Engine or Web Site
Knowing  what search engine a sale has originated from allows site owners and  marketers to know where their efforts are paying off the most. Good  tracking and analysis software will also show what web site referred  visitors. Knowing what sites are sending the most visitors allows site  owners to give special attention to ensuring this traffic continues and  increases. Knowing what referrers are generating the most sales further  allows a site owner to hone his or her marketing efforts toward site  referrals that result in the most sales.
What Keyword Was Searched For
Knowing  what keyword searches are resulting in sales on a site allows the owner  to focus more on those words. Perhaps you are marketing your site for  two main keywords, "air hook widgets" and "air hooks." Using keyword  tracking that traces keywords down to the sale ensures that you will  know if searches for "air hook widgets" convert into sales more often  than visits resulting from searches for "air hooks."
Sales Conversion Ratio of Keywords and Return on Investment
Tracking  keyword searches through to sales allows site owners to determine the  return on investment. If a web master spends $100.00 on the  pay-per-click keyword "air hook widgets" and sells $1000 worth of  product, his or her return on investment is likely very good. If the  same web site owner spends $100.00 on the keyword "air hooks" and sells  $200 worth of product, it is likely that the return on investment was  not as great. Of course, if the markup or profit on one product is  greater than on another, this must be taken into account.
Cost of Keyword
If a web marketer is using pay-per-click engines,  knowing exactly what has been spent on a keyword, and what the return  was, allows money to be put where it will do the most. Keyword searches,  unlike many advertising mediums, are targeted by the viewer. For this  reason, in addition to the accurate return on investment feedback,  keyword marketing can be very worth the cost.
Added Benefit of Branding
Marketing  your site by keyword in pay-per-click engines means that you will only  be charged if a person clicks through your ad to your site.  Pay-per-click ads and organic search listings have the often overlooked  added value of showing the ad or listing many times over in addition to  the clicks the ad or listing receives. Only a small percentage of people  are likely to click on a keyword ad or search result listing, yet your  ad or listing will be visible time and time again to people searching  for terms you have bid on or marketed, increasing your site branding.  Nonetheless, care should be taken to generate a compelling key word ad  or page description, since in most cases you will want to receive as  many clicks as possible.
Conclusion
In conclusion, if you  are spending money on search engine marketing, it is often well worth  the effort to track your keywords through to sales. Without tracking  your keywords, you will not know where your efforts are paying off. By  tracking your keywords, you are able to put your efforts where they are  paying off the most.  
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