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Dustin some of the loss in ranking for specific keywords could be due to the changes you made. It can take a few months for all of that to get sorted out.
You say visitors are up. Is that visitors from search engines? Even if not it seems like you're doing something right.
I wouldn't focus too much on KEI. I think it's much less useful than it would seem. A lot of high KEI terms simply aren't going to convert.
One good way to find keywords to target is by looking at your own server logs. If you find keyprhases that have led to conversions in your own stats you may want to optimize more for those phrases and phrases that are similar.
You can do the same thing bidding on phrases in AdWords, but with a faster feedback loop.
If you want feel free to email me more details and I'll be happy to take a look.
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