Return on investment (ROI) in email marketing is the measure of how much profit you can generate from investing in email marketing.
How to Calculate ROI in email Marketing
To calculate ROI email Marketing, you must know the money you spent on email marketing and the profit you made from the investment.
ROI formula in email marketing is:
Profit÷ Money Spent=ROI
Example of ROI email marketing: Marketer Z invests $100 in email marketing. He then earns $1000 through email campaigns from the investment. Marketer Z will have an ROI of $9 as shown below.
$1000 (money gained)-$100(money spent) =$900 (profit)
$900 (profit)÷$100 (money spent) =$9 (ROI)
So, for every dollar that Marketer Z invested in email marketing, he gained $9. If you want to get the percentage, multiply ROI by 100. Which in the case of Marketer Z will be 900%?
To get a correct ROI, you must have advanced email click trackers that will help you analyze how much money you generated through email marketing.
Importance of ROI in Email Marketing
Calculating ROI in email marketing will help your business deciding if it is worth it investing in email marketing. ROI also helps a business find the best marketing approach it should use to increase email marketing conversions.