ROI , or return on investment , is the relationship between the money invested and the result achieved . And this is one of the most characteristic cases in marketing, because the return is 38 euros for each one invested . It is not surprising, then, that email is becoming a fashionable option in all types of companies. The formula for calculating ROI is the following:
ROI formula
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It should be noted that the average ROI of marketing campaigns is much lower. Other marketing channels, whether direct advertising on television, radio or internet banners, have a significantly lower percentage. For this reason, anyone who wants to do marketing and want it to generate results has a good option here.
The following metrics , beyond the general canadian cto cio email list result, allow you to know to what extent the ROI of your Email Marketing actions is high. Take note, this information will interest you:
Email sales
Email sales are a simple metric that allows you to have some general information of interest. All you have to do is divide the income obtained from sales by the total number of emails you have sent . Although it is obvious that a greater segmentation will help, it is not a bad idea to keep it in mind.
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Click-through rate
The click-through rate does not necessarily mean a purchase. To do this, you have to calculate the number of clicks on a link and divide it by the total number of emails you have sent . However, to get a real result, you should also subtract the number of bounces.
Conversion rate
The conversion rate is related to email sales , although it gives more information in relative terms. Here, rather than knowing how much each email has given you, you are interested in knowing what the conversion rate has been or, in other words, to what extent you have generated a purchase reaction. To do this, it is enough to divide the number of conversions by the emails you have sent .
Commitment
Engagement , which is the recipient's continuity in your campaigns, can be calculated in two ways. First, by taking the opening rate as a reference, which already provides information about whether the email is being sent to the SPAM folder . On the other hand, the click rate is also an indicator of how much interest there is in what you send.
Lead Acceleration
Lead acceleration basically refers to the speed of generating conversions through the sales funnel . It is therefore worth noting that there is no fixed formula here, but there are some indicators such as the number of emails sent and the conversion, taking into account the time.
Traffic
Website traffic is one of the options to know the effectiveness of your campaign. In this case, the calculation is relatively simple because all you have to do is check the web traffic from the beginning of the campaign and compare it with previous dates.
General income
The ROI in relation to the company's total income is a very simple calculation, since all you have to do is divide them ; the closer it is to one or the higher the percentage, the more interesting it will be for you to invest in Email Marketing actions.
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The ROI of Email Marketing is frankly high, and that is why it is good that you know the different metrics to calculate whether your actions are working well. An Email Marketing solution like the one we offer will help improve the results.
