Return on investment (ROI) is a fundamental metric in email marketing that plays a crucial role in determining whether a campaign was successful or not. That’s why it deserves a separate article so you know everything you need to know about it. Briefly, clearly, and to the point. So let’s get started.
What is return on investment?
This parameter expresses the ratio of net profit to money spent. Return on investment, therefore, indicates the profit in percentage from the amount spent on a given campaign.
How is return on investment calculated?
The return on investment will not be shown to you algeria phone number data by the emailing tool, you have to calculate it yourself . There are several ways to calculate it, one of them is this:
(return on investment ÷ investment) × 100, i.e. (campaign profit – campaign costs) ÷ campaign costs × 100
If you sold goods thanks to the newsletter, from which you had a profit of 10,000 CZK, and its preparation and other costs for sending it out cost you 2,000 CZK, the return on investment of the given campaign will be (10,000 – 2,000) / 2,000 * 100 = 400%.
Why is it important to track return on investment?
Return on investments shows what you’re probably most interested in – what net profit the entire campaign brought you after deducting all costs . And based on that, you can easily evaluate whether it met its goal and whether your marketing efforts are effective or whether you’re burning more money than you’re getting back from it.
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What is the average return on investment? And what is a good return?
Barilliance’s internal research showed that the average ROI in 2021 was 3800 % . In layman’s terms: on average, each entrepreneur made 38 green pieces of paper with a portrait of George Washington from one dollar invested in emailing.
The top 18% of companies earned more than $70 for every dollar invested, while the bottom 20% of companies earned less than $5 for every dollar invested.
However, this does not automatically mean that they are unsuccessful or that their campaigns are not economically profitable. Whether a given return on investment is good or not is up to you to determine .
No one else knows how much time and effort you have put into this campaign, and how many sales you need to make up for not only the money spent, but also these hard-to-measure commodities.
How can you increase your return on investment?
By creating and sending quality emails across the hong kong data board. We’re still focusing on the same thing we repeat in almost every article. The best candidates for high ROI are campaigns that boast:
interesting objects ,
effective CTAs ,
precise segmentation ,
quality personalization.
You can then continuously tune all of the above through A/B testing , which will ensure that each of your next emails will have better results.
And that’s all, friends.
This concludes our series on the most important email marketing metrics. To keep this information handy, we are preparing an e-book on metrics for you. For more news, tutorials, case studies, and tips and tricks, visit our blog .