It`s always a bit of challenge to create a successful email marketing campaign and demonstrate results. All successful marketing campaigns are based on numbers. We have collected the best tips for unlocking email marketing ROI and want to share them with you.
4. 6 SecretS to Unlocking email marketing roi 4
3. assessing the VariaBles Each of these variables tells you something about how much
your email campaigns are costing you and will enable you to
ROI cannot be judged solely by performance clickthrough and calculate your ROI. If this is your first email marketing campaign,
conversion rates. For Marketing ROI, you need to determine use it to obtain a baseline of these figures. Building your baseline
what you view as the “return” in the equation. Is it total revenue will give you insight to how you are trending and improvement
generated, profit, new Fans, coupon redemption? opportunities.
To prepare for calculating the ROI, there are several important
variables to gather and define as they relate to your business
model: 4. calcUlating roi
Creative development costs (templates, images) There are several third party tools on the market to calculate
complex ROI equations using the variables we have suggested.
Email Service Provider costs
However, here are some simple calculations we recommend:
Campaign management time
Return on Investment: Net revenue / cost
Also, you may need to gather email specific variable data: Return on Investment: Gross Profit-Marketing
Investment/Marketing Investment
# of contacts
Revenue per email sent: Net revenue / # of emails sent
Average cost per contact
Customer Lifetime Value: CLV-Marketing
# of Responders
Investment/Marketing Investment
# of Buyers
Revenue Generated Customer Lifetime Value is a measure of the profit generated
Profit by a single customer or segment of customers over the lifetime
of their engagement with your company. Using this equation
Cost per Responder
will help determine customer segments and how you position
Cost per Buyer
offers to each segment. Since ROI is usually expressed as a per-
Campaign Audience Size centage, for each of these equations multiply the result by 100.
Campaign Cost
Any of these simple calculations will track the campaign level
Response Rate (what % do you expect measures to reveal which campaigns brought an increase in
based on prior performance) sales rather than clicks.
Conversion Rate (what % of responders will buy
based on prior performance)
Average Buyer Purchase Amount (How much will
buyers spend based on prior performance)