But how do you know when an email marketing campaign is successful? Sure, there are metrics like unsubscribe, clicks, and conversion rates. However, managers and shareholders need an indicator of each campaign’s financial performance.
You want to know that your emails are making more money than it costs to send them. Otherwise, what's the point? Without tracking ROI, it's hard to know if you're not wasting money on ineffective marketing efforts.
How can you ensure that your return on investment is high enough? The first step to improving any metric is tracking. This article explores what ROI is and why it matters. Only when you start paying attention to ROI can you unlock the full potential of your email marketing campaigns.
What is email marketing ROI?
ROI stands for return on investment. In simple terms, it is a measure of money coming in and money going out. In the context of email marketing , ROI means the profit you are left with after covering the cost of a particular email campaign.
Whether you're using uk business fax list email marketing for outbound sales lead generation , product launches, newsletters, or nurturing existing leads, you need data to gauge whether your efforts are yielding the expected results.
This is where return on investment (ROI) comes into play. ROI is a useful metric to track the success of various campaigns, make necessary adjustments, and allocate resources accordingly. But many brands fail to adequately track such a powerful KPI.
How to Calculate Email Marketing ROI
Now, let’s take a look at the steps involved in calculating the ROI of your email marketing.
Add up the money spent
To calculate the amount of money spent on a marketing campaign, you need to take into account the cost of your email service provider, the salaries or hourly rates of the marketing team, and the expenses of any tools involved in the campaign.
Calculate the money earned
Determining how much money a campaign has generated is more complicated.
Email marketing is done for many different reasons, from lead generation to cold emails to a variety of value-added content sent to existing customers. When a recipient clicks on the CTA, they may not be spending money directly, but they are moving through important stages of the sales funnel, which will ultimately lead to conversion.
