How do you know if your email campaigns really work? This is probably one of the frequent doubts when investing in this type of strategy. To be certain that you are obtaining the desired results, there is a metric that is key: ROI email marketing. In this note we tell you everything you need to measure the return on investment in your emailing campaigns.
If we talk about the best channels to interact with leads and customers, then email cannot be missing. The years go by, new channels appear, new forms of communication and yet, ROI email marketing is still the highest. According to Oberlo, For every $ 1 invested, the estimated median return is $ 42 .
These are very encouraging figures for any business that implements email marketing as a strategy. But it is also the boost that brands that have not yet taken this step need.
Now, how do you measure ROI in email marketing? And, above all, how to improve it. We give you the details below.
ROI email marketing what is it?
When you decide to invest money in a certain strategy for your business, surely one of the doubts that appears is about how profitable the investment in question will be. Fortunately, there is a way to find out and that is to calculate the ROI. But what is it? What is this about?
ROI is what in English is known as Return on Investiment and in Spanish we call Return on Investment. Basically, it is one of the indicators o KPI’s most important for a business. It is a metric that you allows you to compare the investment you have made, with the results obtained. This is essential to know how effective the actions were taken.
In the case of ROI email marketing , what it allows is to compare the investment in a campaign and the results obtained in it. In other words, how much income does emailing represent for your business.
The comparison between the investment you have made and the profits you obtained in an email marketing campaign is the most important metric, if you want to know the effectiveness of your actions. This will allow you Know if your business is generating income through email marketing , if that income is desired and if it is necessary to make adjustments to improve results.
If you want to know more about the effectiveness of email marketing, we recommend you read this note .
As we saw before, email marketing is the perfect tool to make your investment profitable., since it is a channel that generates great results in sales, but at a very low cost. Do you want to know how to measure the ROI of your emailing campaigns? That’s where we go!
How to measure the return on investment in email marketing?
The return on investment in email marketing is essential to evaluate the efficiency and profitability of your campaigns. Being able to calculate it easily is one of the ways to have this information always updated and available to introduce improvements in your strategy. But How to measure it? Where to start? Help! Calm! That is what we are here for.
The basic formula for calculating ROI is: profit – money invested / money invested = ROI (expressed in percentages).
Among the main mistakes made by SMEs or first-time companies is the lack of measurement of results
It seems very simple right? But measuring ROI in email marketing can be a bit more complex than this. we are going to know the step by step, do not miss any details!
Determine your investment
The first step in getting started calculating your ROI in email marketing is determining your investment . That is, know how much you spend on your email marketing.
In general, here enter the expense corresponding to the payment of your email service provider, that is, the payment of your shipping plan. But there are also other factors that are part of your investment, for example, the time allocated to the adjustments and implementation of the campaign. How long does it take your team to get it up and running? By determining this, you can assign an hourly rate for these tasks.
Then, the investment in email marketing would be equivalent to the cost of your delivery plan + the value of the hours dedicated to creating and setting up the campaigns.
Something interesting that we should highlight about emBlue is that you can start with a free plan, that is, your investment in this case would be much less. If you want to know the details and the value of each plan visit our note how much it costs to start an email marketing campaign .
Identify the income earned
To calculate the income obtained through mailing, it is necessary to go beyond the open rate and the click-through rate. What you need to identify is what happens to the user once they reach your website or the landing that you have created for your campaign.
How to find this information? In this case, your greatest ally is Google Analytics. With this tool, you can know the detailed path of your leads and the conversions they are making on their journey.
Did you know that by using emBlue you can integrate your Google Analytics account? Thus, you can quickly and efficiently view the traffic of your campaigns.
Calculate ROI email marketing
We come to the calculation of the ROI email marketing. Don’t worry, because this part is simpler. What is needed at this stage is gather all the data that you have obtained from your campaign and insert it into a very simple formula:
- Earnings – investment / investment x 100 = ROI email marketing.
Let’s suppose that your business generated $ 50,000 in profit per year through email marketing and to carry out that campaign you invested $ 10,000. The return on investment calculation would be:
- $ 50,000 – $ 10,000 / $ 10,000 x 100 = 400% ROI.
As you can see, the formula is quite simple, you just need to gather the correct data. Remember that, for this, the key is to choose the right email marketing tool . One that allows you to obtain precise insights about the operation of your campaigns .
4 ways to improve ROI email marketing
The ROI email marketing depends, to a large extent, on the practices you apply in your shipments. In other words, if you improve some of your practices and actions, you can get a better return on investment from email marketing.
We give you 4 recommendations to increase ROI and improve the results of your emailing:
Automate your email marketing
Automating email marketing can help you reduce costs and increase the ROI of your campaigns. Mainly, because the marketing automation simplifies processes and saves a lot of time .
Automating your email marketing helps you optimize the metrics of your campaigns and ROI is one of them. This is due, above all, to the fact that you can dedicate more time to the task of analyzing and making decisions based on the insights that you are obtaining. That time before you had to dedicate it to shipments, but that with automation is in the hands of the tool.
In addition, marketing automation is a great ally to generate leads.. Thanks to the fact that it allows you to send emails at the right time, it has become one of the best strategies to improve the conversion rate. This, of course, also helps optimize email marketing ROI.
Segment and personalize
Segmenting your contact list will allow you to send emails that respond to the interests of each group.. This is essential to improve your return on investment in email marketing.
Keep in mind that not all users want and expect the same from your business. Thus, It is important to first discover how they interact with your brand and what needs they have. Based on this you can deliver relevant messages.
Segmentation and personalization go hand in hand and promise very good results for your campaigns .
Work the subject line
You have 5 seconds to get the user’s attention and get them to open the email you sent. What you have ahead is the challenge of creating the best subject line for each email in your campaign .
If nobody opens your messages, your open rate can be disastrous, but also, it is impossible to have a good ROI. How do you get a positive ROI if people don’t know what you have to offer?
Therein lies the importance of working on the subject line and creating phrases that motivate users to click on each email you send.
Create better calls to action
All emails within an email marketing campaign have some call to action or Call to Action (CTA). This is one phrase or word that tells the user what to do next : Click here, Visit this note, Sign up now, are some examples.
A good Call to Action helps the user to move forward, to go from your email to the place you want to take it, your website, a landing page, your store, etc. Remember that calls to action should be short and direct. In addition, they must be differentiated from the rest of the message, with a different color or design that attracts attention.
Now you have enough information about ROI email marketing. You can use it to calculate the return on investment in your latest campaigns and discover what adjustments you need to make to improve your results. Time to analyze!
ROI email marketing FAQ
What is ROI email marketing?
ROI email marketing is that economic recovery that originate massive email campaigns, compared to the investment made to implement them.
What is ROI email marketing for?
Know the ROI in your mailing campaigns , It will allow you to know if, in addition to the relevant metrics to the email channel, your business is receiving an economic profit. If not, you can adjust your strategies to achieve it.
️ How to improve my ROI email marketing?
To improve the Return on your Investment in email marketing, you should take into account the following points:
- Automate shipments
- Segment and personalize
- Work on email issues
- Improve your CTAs or calls to action