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Sean, once you understand how people use search engines and the types of words they string together into search phrases, you start to see a pattern... it becomes almost second nature. Coming up with a list of keywords and guessing the potential search volume and competition level becomes easier.
Having said that, I tend not to rely so much any more on keyword search volume data. So, to find a SERP tracking tool that doesn't include Adwords API data is a good alternative for me than using Raven Tools, especially since the Google Webmaster Tools API still doesn't have a way to get Average Position of keywords from the "Search Queries" section of the GWT.
It's tough for Raven Tools to make the choice they made, especially since Google doesn't yet offer access to an approved, alternative way to track rankings via an API. Sure, we can download a .csv file and monitor average position manually in a spreadsheet, but it's nothing compared to what I've been used to receiving in Raven's SERP Tracker.