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You may have heard that email marketing has one of the best returns on investment (ROI) of all marketing methods. Email marketing gives marketers the most bang for their buck compared to almost everything else, even social media. It’s one of the most profitable ways to calculate email marketing ROI it out of your marketing plan if you want to make as much money as possible from all of your marketing channels, and who doesn’t?
Email marketing campaigns that work well require a lot of money and time. And when you put a lot of time and money into something, it’s important to know how much you’re getting out of it. Below, we’ll talk about the basics of email marketing ROI, including how to measure it well so that you always know what’s working for your bottom line, which is different from your subject line.
How to calculate email marketing ROI
Know your email marketing goals
Email marketing can be hard to track ROI for because it can be used for so many different things. Better brand awareness? Check. Consistently taking care of leads? Check. More people visiting your website, more sales, and more money? Check, check, check.
Once you know what your email marketing strategies are trying to do, it will be much easier to measure their return on investment (ROI). This is because you’ll have a better idea of the costs and benefits of what you’re doing.
Track your email marketing expenses
Software for email marketing: Email marketing won’t work if you don’t have reliable software. And you have to pay to use most email marketing software that is worth your time. Add up how much you’ve spent on your email service provider (ESP), platforms for email analytics and design, and any other tools you use to send email campaigns.
Time and pay for employees: Here’s where things could get tricky. Unless they work for you for free, your employees are a cost that needs to be taken into account. Estimate as best you can how much time your team spends on email marketing. Then turn this number into a rate per hour.
Miscellaneous expenses: Have you spent money on anything else related to your email marketing efforts that doesn’t fit into the two categories above? Make sure to count all the money you spent on images, consulting, etc., when you figure out the return on investment for your email marketing.
Tally the benefits of email marketing
Now it’s time to figure out how much your email marketing efforts are worth.
If you sell goods or services online, this is easy to do. But remember that email marketing does more than just bring in sales. Leads should also be taken into account.
Google Analytics is the best way to keep track of sales and leads, especially if your ESP is integrated with the Google Analytics platform. Search your Analytics dashboard to find out how many sales came from an email campaign during the time period you’re tracking.
Calculate your email marketing ROI
- First, we subtract all of our email marketing expenses for the past three months from the total gain our efforts generated: $8,995.42 – $3,125 = $5,870.42.
- Then we divide $5,870.42 by our expenses, which were $3,125. We get 1.88, which we multiply by 100% to get an email marketing ROI of 188%.
What is email marketing ROI?
Return on investment (ROI) is a way to measure how well and how much money an investment makes. In this case, it is a way to measure how well email marketing works. Here’s the basic way to figure out ROI: ROI means return on investment (expressed as a percentage).
As a marketer, every email marketing campaign you run should bring in a good amount of money, and you should be able to figure out how much. It’s not as easy as it might seem to track the return on investment (ROI) of your email marketing. This is because email marketing is a flexible method that can be used to do things like:
- Getting more people to know about a brand
- Lead care for
- Getting more sales and money from a website