It is first an acronym: three letters which mean return on investment . It is the indicator that accurately measures the economic efficiency of campaigns , offering figures and values with which to compare the effectiveness and profitability of the messaging channel compared to other digital marketing channels. ROI answers a simple and at the same time indispensable question for marketers who adopt an analytical approach to marketing strategies: how much do campaigns “earn” in relation to the costs incurred to implement them? General consideration: despite the explosion of new digital technologies, the email channel continues to assert itself as the most reliable ; it has had the highest ROI for businesses and marketing professionals for years :
Campaign Monitor estimates that for every dollar spent, email marketing generates $38 . The return on investment of email marketing How to calculate return on investment While there are many tools online for measuring ROI (this is just one of many), there is a pretty basic formula you can use to calculate your ROI. Here is the calculation: Take the value of an email campaign's total sales or revenue Subtract the costs incurred to create it (including platform, human E-Commerce Photo Editing Service resources and time spent) Divide the result by the same cost Multiply by one hundred . Graphically, here is the formula: [(Email Campaign Sales Value – Campaign Costs)/Campaign Costs] * 100 Actions to improve ROI ROI is the last stage of the metric funnel , the deepest level. The Email Marketing KPI Funnel Along with this, we can add another one that shows the operations needed to improve each level of the funnel above: Deliverability → Infrastructure Open Rate → Sender, Subject, Pre-Header Click Rate → Structure, Images, Call to Action Conversion Rate → Deliverability, Punctuality of Feeds,
Effective Landing Pages ROI → Relevance of content, Offer, Multichannel What does it mean? Simply, the optimization of the ROI passes by the improvement of all the metrics at the base of the ROI: even a single fault in one of the levels composing the funnel brings the dispersion of the resources and a weaker ROI. An appropriate image is that of a leaky pipe : even if your emails have extraordinary conversion potential - thanks, let's suppose, to compelling offers and efficient creativity - a lack of deliverability, i.e. inbox deliverability, may affect subsequent metrics with a domino effect until ROI. We have described an optimization path for each level in this blog post. It will give you a broad perspective on the metrics macro activity. Do you know what the most important email marketing KPIs are? In this article, however, we'll focus on the operations that immediately affect ROI: