ROI

ROI (Return on Investment) is the measure that helps to evaluate the performance of an investment.

In this video, Adam Erhart shares seven practical tips to increase your email campaign ROI.

To calculate ROI, you need to take the gain of an investment, subtract the cost of the investment, and divide the total by the cost of the investment. Or simply:

The report released was used to summarize the survey conducted among online marketers on how they evaluate the ROI of email marketing for their organizations. The results have shown that:

• the average ROI of email marketing, according to marketers, is 119%;
• the highest ROI is among B2B companies (127%);
• marketers from companies that send out less than 100,000 emails per month evaluate their campaign ROI as 139%; and 
• the marketers of companies that launch email campaigns with over 100,000 emails per month claimed the lowest ROI among the rest of the cases (94%).

In email marketing, it is recommended to measure the ROI to be able to see which campaigns work better and which campaigns are not sufficient. 

How to Calculate ROI in Email Marketing

S is the sales, which is derived from automation campaigns.

CS is the cost of sales, which is derived from automation campaigns.

EMC is the cost spent on email marketing.

References

1. This article defines ROI and provides a formula to calculate it.
2. The article defines ROI, explains how to calculate it, and identifies the challenges of determining it.

Last Updated: 22.03.2023