What is Email ROI?
“Email ROI” stands for “Email Return on Investment.” It is a measure used to evaluate the effectiveness and profitability of an email marketing campaign.
ROI, in general, represents the return or benefit gained from an investment relative to the cost of that investment. In the context of email marketing, email ROI calculates the monetary return generated from the resources, time, and money invested in an email campaign.
To calculate email ROI, you typically compare the revenue or conversions generated directly attributed to the email campaign against the costs associated with creating and sending those emails. The formula for calculating email ROI is as follows:
Email ROI = (Revenue - Cost) / Cost * 100
Here, “Revenue” refers to the total income or monetary value generated as a result of the email campaign, while “Cost” represents the total expenses incurred in designing, executing, and managing the campaign.
Email ROI serves as a crucial metric for marketers to determine the profitability and success of their email marketing efforts. It helps gauge the effectiveness of different campaigns, measure the impact of various strategies, and make informed decisions to optimize future email campaigns.