What is email marketing ROI?
ROI, or return on investment, is a crucial metric for quantifying how efficient your marketing actions are. It is very much apparent that email marketing is worthy of your attention when talking about making every dollar you spend actually count.
With all of the various channels practicing digital marketing available to the modern marketer, it is only fair to wonder, is email marketing still an element of your digital marketing strategy that it’s worth its weight in gold? The answer is obviously yes.
No matter how many other innovative digital marketing tactics appear, email marketing will forever remain one of the best manners to reach and engage your target audience. Email marketing’s strength lies in its capability to give businesses of all sizes an interesting return on investment, so you might want to get a head start and boost your email ROI.
Here is a list of what you will want to be certain to measure for success with your email marketing strategy:
- Click-through-rate. Your CTR, or, as it is also known, click-through rate, represents the amount of people who clicked on a specific link. To get to that number, you will want to divide the number of unique clicks by the total amount of emails sent out, minus the amount of bounces. The higher the CTR, the more money you will be getting with the help of your CTA.
- Engagement. As your emails get progressively better when it comes to encouraging engagement, the better they become for your profit margins. This rate of engagement breaks down into two particular KPIs: open rates and CTRs. Open rates and CTR possess the ability to show you how well you are engaging and what is costing more than it’s worth.
- Lead acceleration. Lead acceleration represents the speed at which you move leads down the email marketing funnel. Measuring this metric is not as much about formula as it is more about comparisons. If your lead conversions have increased due to your emails, then that is how you know that your outreach is working.
- Overall revenue. Look at your email ROI and compared it to your overall income. Doing this will helpfully put it into perspective with the remainder of your marketing and sales tactics. If it outperforms everything else, then this is what should tell you that it may be worth giving more resources toward your emails and less toward the things that are not pulling quite as important.
- Website traffic. The more traffic, the better. Please take a quick look at how your emails have affected web traffic to analyze their ROI when it comes to brand awareness and engagement.
How Email Marketing Software Can Help
Making heads or tails of your email marketing ROI needs concentrating on a great variety of metrics. To take the guesswork out of it, utilize email marketing software or marketing automation software, which will track, monitor, and analyze your data to offer you ROI insight you might not be able to get otherwise.