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The ROI of Email Marketing


You’ve probably heard that email marketing has one of the highest ROIs of all marketing tactics. Dollar for dollar, marketers get more benefits out of emails than they do out of pretty much any other endeavor. It’s one of the most lucrative marketing practices out there, and one that you definitely can’t neglect if you want to eke out the maximum amount of profit (and who doesn’t?)

Successful email marketing requires a big investment in terms of resources. And when you’re spending a lot of time and money on something, it’s important that you fully understand how much you’re getting in return. Below, we’ll cover the basics of email marketing ROI, including how to measure it effectively so that you always know what’s working for your bottom line.

What Is Email Marketing ROI?

ROI, or return on investment, is an essential metric for quantifying how effective your marketing efforts are. Emails pretty much blow other digital outreach methods out of the water in terms of ROI, with an average of $38 gained to $1 spent, making their ROI an awe-inspiring 3,800%. It’s clear that email marketing is worth your focus when it comes to making every dollar you spend really count.

The formula for figuring out your own email marketing ROI looks like this:

Net Gain (profits derived from email marketing – email marketing costs) / Email Marketing Costs

Keep in mind that averages are not guaranteed. Spending $5,000 on email marketing doesn’t mean you’ll get 38 times that amount back. But it does mean that you’re likely going to be able to turn that $5,000 into a lot more profit than you would if you’d dedicated it to something like PPC ads.

Setting Goals to Measure

To figure out your email marketing ROI, you need two figures: how much you spent and how much you earned. The latter, however, isn’t quite as easy to figure out. Sales aren’t the only kind of profit that results from emails, and you’ll want to pay attention to a variety of metrics when determining the value you derived.

So what are those metrics? Here’s what you’ll want to be sure to measure:


How Email Marketing Software Can Help

Making heads or tails of your email marketing ROI requires paying close attention to a wide range of metrics. To take the guesswork out of it, use email marketing software or marketing automation software, which will track, monitor, and analyze your data to give you ROI insight you might not have otherwise. It’s a lot easier than running all the numbers yourself, and means that you get the data you need a whole lot faster.


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