Email marketing is still one of the most effective marketing channels regardless of what new digital marketing strategies are developed. Email marketing is a permission-based method that allows for customization, targeting, customization, and customization. Email marketing returns an average of 3800% on investment.

Before moving on to the next phase of your email marketing campaign implementation, you need to set clear goals and identify key performance indicators that will help you monitor your progress.

The email marketing returns on investment (ROI) is a performance measurement metric that measures the effectiveness of digital marketing efforts. This is the sum of the return you get from an investment and the amount you have budgeted for it.

The ROI of email advertising might not be the greatest. Focusing only on the return will result in missing the other benefits, such as lead nurturing, satisfaction, and company recognition.

How do you calculate your email marketing ROI

ROI (%) = (Gained Value – Spent Value) / (Spent Value)

It’s important to understand the meaning of the terms.

• This is the amount of profit you make from email marketing during an accounting period.

• The “spent value” is the amount that you spent on email marketing campaigns during the same period.

Maximizing your Return on Investment in Email Marketing

These tips will help you increase your email marketing ROI. 

1. To get more leads, increase your email list

2 Send triggered messages like thank you, welcome, and abandoned shopping cart emails.

3. Always optimize your emails for mobile devices,

4. Your email delivery should be your primary focus. You won’t receive any returns if your emails don’t reach the inboxes you intended.

5 you must measure and determine key performance indicators for your business.

6. Interpret all email marketing metrics correctly

7. To assess the effectiveness and efficiency of email marketing campaigns, consider your conversion rates. 60% of marketers do this.

8. Email marketing returns can be taken apart. You can interpret your email marketing returns separately.

9. Gain a comprehensive understanding of your unreachable email marketing goals.

Input fields

Determine your email marketing ROI by selecting your preferred currency from the list after clicking the arrow.

Send Volume – Enter the number of subscribers to your email lists that have received your emails. If you do not include bounced emails, it will give you a better result.

Campaign Cost: This cost covers all email marketing campaigns. However, it’s easier to look at them individually. This allows you to compare digital efforts from different campaigns created for different business goals.

Open Rate: Enter your email marketing campaign’s open rate. It is the percentage who opened the email. Smart Insights reports that the average open rate is 24.8%. It can vary depending on industries and sectors.

Click-Through Rate – Enter the click-through rate of your email marketing campaign. This can be displayed in the dashboard of your ESP.

Conversion Rate: Enter your email marketing campaign’s conversion rate. Google Analytics will help you to determine your conversion rate.

The Average Valuation of a Conversion refers to the average customer spend. Also known as average spend per customer (ASC) or average order value in Google Analytics.

Result fields

Cost per Contact: This is how much you spent on a single customer in an email marketing campaign. The total campaign costs are divided by the number of subscribers your campaign was sent.

The Number Of Openings is the total number of people who opened your email. This is calculated by multiplying the send volume by the email open rate.

Numbers of conversions: This number is the number that people have converted to your business through email marketing campaigns. 

Revenue is the online revenue that is directly generated from an email marketing campaign. The average conversion value is divided by the total conversions.

Profit is the profit from an email marketing campaign. To calculate the profit, the total campaign expenses must be subtracted from the total revenue.

Cost Per Open Email (CPO) shows how much it costs to get one customer to open your email. 

Cost per conversion (CPC). This is the cost to convert a customer.

Return on investment (ROI), is the percentage of highly successful email campaigns. This means that you earn $32 for every $1 spent.

Break-Even Calculations: This calculates how many conversions you need to reach zero profit or loss.

I believe your email marketing results will surpass your expectations. Kobe Digital is here to help you build an effective email list.