ROI on email marketing is higher than average in the following industries:
But why has email marketing become such a lucrative medium?
There are multiple reasons why email marketing often represents the highest ROI among different media outlets, including:
Email is a tool used by 4.2 billion people today.
It is considered the preferred means of communication for B2B markets.
It is estimated that consumers who receive offers via email spend 1.38 times more than those who do not subscribe.
Metrics are easily tracked: you can monitor in detail whether the strategy is working and readjust.
Subscribers are often interested in receiving emails and are therefore more likely to take action.
Setting goals to measure
To calculate your email marketing ROI , you need two numbers: how much belize telegram data spent and how much you earned . However, the latter isn’t so easy to figure out. Sales aren’t the only type of profit you get from emails, and you need to pay attention to a variety of metrics when determining how much value you got .
So what are these metrics? Here are the elements you need to measure to be successful in your email marketing strategy:
1. Sales generated by emails
This number will help you determine how much sales revenue you got from each individual email . I recommend keeping track of how many people became customers after receiving one of your emails. If you're automating your email marketing , tracking revenue directly from it will be much easier, but more on that later.
To calculate this figure, you must:
Divide the total revenue earned from your emails by the total number of emails on your email list that you sent.
2. Conversion rate
No matter what your call to action looks like —download a whitepaper, schedule a call with your sales team, or book a demo—you need to track how often you're driving that action and how much it's costing you .
The more conversions you get, the more revenue you will earn, so this is one of the most important metrics to evaluate your ROI.
To calculate it, you must:
Divide the total number of conversions by the total number of emails you sent .
3. Click-through rate
Your CTR , or click-through rate , is equal to the number of people who clicked on a specific link. The higher the CTR, the more benefits you'll get from your CTA .
To get this number, you must:
Divide the number of unique clicks by the total number of emails sent minus the number of bounces.
4. Commitment
The better your emails are at encouraging engagement, the better your profit margins will be. Engagement rate is broken down into two specific KPIs: open rates and CTR . Both will tell you how well you’re engaging and what’s costing more than it’s worth.
5. Lead acceleration
Lead acceleration is the speed at which leads move through the email marketing funnel . Measuring this metric is more about comparisons than a set formula . If your lead conversions have accelerated thanks to your emails, you know your outreach is working.
6. General income
Look at your email ROI compared to your overall revenue . Doing so will give you context with the rest of your marketing and sales tactics. If you’re outperforming everything else, this indicates that it might be worth putting more resources into your emails and less into the things that aren’t pulling as much weight.
7. Website traffic
The more traffic, the better. Look at how your emails have impacted web traffic as a way to evaluate your ROI in terms of brand awareness and engagement .
How email marketing software can help
Achieving a one-way ROI on your email marketing requires paying close attention to a wide range of metrics.