The ROI of Email Marketing
You’ve probably heard by now that email marketing has one of the highest ROIs of any marketing tactic . Dollar for dollar, marketers get more profit from email than from almost any other medium, including social media. It’s also one of the most lucrative marketing practices out there and one you definitely can’t neglect as part of your marketing strategy if you want to get the most profit out of every channel possible.
Successful email marketing campaigns also require a huge investment in terms of resources, so when you spend a lot of time and money on something, it’s important to fully understand how much you’re getting in return . That’s why below, we’ll cover the basics of email marketing ROI, including how to measure it effectively so you always know what’s working for a good end result.
How to calculate the ROI of email marketing
What is Email Marketing ROI?
ROI, or return on investment, is an essential metric for quantifying how effective your marketing efforts are. With an average of $38 earned per $1 spent, email campaigns ghana consumer mobile number list virtually obliterate other digital outreach methods in terms of ROI , making it an impressive 3,800%. With this in mind, it’s clear that email marketing is worth focusing on when it comes to making every dollar you spend really count.
How to calculate ROI in email marketing
The formula to calculate your own email marketing ROI should look like this:
Net income (benefits derived from email marketing – email marketing costs) / email marketing costs
Keep in mind that averages aren’t guaranteed. Spending $5,000 on email marketing doesn’t mean you’ll get 38 times that amount. But it does mean you’ll likely be able to turn that $5,000 into a lot more revenue than you would if you spent it on something like PPC ads.
What is the ROI of email marketing by industry?
ROI on email marketing mobile ux: best practices guide for your ecommerce is higher than average in the following industries:
In Travel and Tourism it is around $53 to $1 .
In the Software and bz lists Technology sector it is $40 to $1 .
In eCommerce, retail and consumer goods it is $45 to $1 .
For marketing and advertising agencies , the ratio is $42 to $1 .
Finally, in general entertainment , events and sports , the ratio reaches $45 to $1 .
There are multiple reasons why email marketing often represents the highest ROI among different media outlets, including: