Email Marketing ROI: What Every Business Should Know

Email marketing has a pretty big impact on the businesses that use it, so it is important for your business to know how to make a good ROI. In this article, you will learn about how email marketing can help your business, who profits from email marketing, and what you need to know before investing in email marketing.

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What is Email Marketing?

Email marketing is a way to connect with customers and followers through email. Emails can be sent to individuals, groups, or entire organizations. Email marketing can also be used to build relationships and promote products and services.

Email marketing can be effective in building relationships with customers and followers. Emailing customers allows businesses to keep customers up-to-date on new products, services, and promotions. Emailing followers can also help businesses build a relationship with potential customers who may not have been reached through other methods.

Email marketing can be effective in promoting products and services. Emailing customers about new products allows businesses to reach potential buyers who may not have been reached through other methods. Emailing followers about new products or services can help businesses attract new customer leads.

Email marketing can be used to create a sense of community among businesses and followers. By sharing information, ideas, and experiences, businesses can create a community of like-minded individuals. This community can help businesses share ideas, feedback, and resources that they may not have been able to share otherwise.

Why Bother with ROI?

Email marketing is one of the most cost-effective ways to reach your target audience. It can be used for a variety of purposes, such as increasing website traffic or generating leads for sales. However, many businesses don’t seem to worry about their email marketing ROI. In this article, we’ll explore why you should bother with ROI and how you can calculate it.

First, it’s important to understand what email marketing is and isn’t. Email marketing is not simply sending out an email blast to your entire list every day. It should also include engagement tactics (such as asking recipients to vote on a poll or fill out a form) so that you can measure the effectiveness of your campaigns.

Now that you know what email marketing is, let’s talk about the three main reasons why businesses might want to calculate their email marketing ROI:

1) Increased Website Traffic: Email marketing can help increase website traffic by driving people to your website from your email list. This is because people who visit your website are more likely to open and click through your emails. If you have good content in your emails, this will also lead to higher conversion rates (the percentage of people who complete the action you want them to take as a result of your emails)

2) Improved Sales: Email marketing can also help increase sales by improving the quality of leads. There is a significant correlation between email subscribers and revenue. For example, it’s been shown that one percent of customers who are subscribed to an email list account for 15% of purchases.

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3) Increased Average Order Value (AOV): Email marketing can also help increase AOV by increasing average order value. When more people subscribe to your email list, you will be able to reach out to more potential customers which means that you can promote more products and services and ask for higher prices. This is also why some businesses limit their emails in order to keep costs

How to Calculate ROI

Email marketing is a great way for businesses to reach out to their customers. However, it can be difficult to calculate the ROI for email campaigns. Here are five tips for calculating ROI for email marketing:

  1. Set a Goal
    Before starting an email marketing campaign, determine your goal. This can range from increasing conversion rates to simply reaching more people. Once you have your goal in mind, start measuring the success of your campaign against that goal.
  2. Analyze Statistics
    Once you have your goal in mind, it’s important to analyze the statistics of your email campaigns. This includes things like open and click rates, unsubscribes, and bounces. Use these statistics to improve future campaigns or tweak current ones accordingly.
  3. Test Different Approaches
    Not all email campaigns will work the same way. Testing different approaches can help you find those that work best for your business. This includes things like subject lines, content types, and timing.
  4. Measure Results Over Time
    After testing different approaches and measuring results over time, you will be able to make better decisions about how to run future campaigns. This will help keep your ROI high and ensure maximum results.

Types of ROI

Email marketing can provide different types of return on investment (ROI).

Cost-per-action (CPA) is a common way to measure email marketing ROI. This metric measures the cost of acquiring a lead, including both the cost of the email and any additional costs incurred for the conversion process.

The average CPA for email campaigns run by businesses in North America is around $0.50, though this number can vary drastically depending on the industry and customer base.

Another commonly used metric for email marketing ROI is click-through rates (CTRs). CTRs are a measure of how many times a user clicks through to a specific page or attachment in an email message.

Generally speaking, higher CTRs indicate better performance for email marketing campaigns. However, there are a number of factors that can impact CTRs, such as the design and layout of an email campaign, the content of the emails, and the target audience.

Overall, email marketing ROI can be measured in a number of different ways and depends on the specific needs and goals of a business.

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Ways to Measure Success

Email marketing can be a great way to connect with customers and build relationships. However, it’s important to measure the return on investment (ROI) of email marketing campaigns in order to determine whether or not they’re worth your time and money. Here are four ways to measure the success of your email marketing campaigns:

  1. Open rate: This is the percentage of emails that are opened by recipients. The higher the open rate, the more likely people are to read your email.
  2. Click-through rate (CTR): This is the percentage of emails that result in people clicking on a link within the email. Higher CTRs indicate that more people are taking action as a result of reading your email.
  3. Reply rate: This is the percentage of emails that result in people responding, such as agreeing or disagreeing with something in the email, filling out a form, or clicking a link.replying is an indication that people are interacting with your content.
  4. Engagement rate: This is the percentage of emails that results in at least one engagement – such as someone opening an email, clicking through to a landing page or filling out a form – from recipients.


Email marketing is one of the most powerful tools an entrepreneur or business owner can use to reach their target market. However, like anything else in life, not all email campaigns are created equal. In order for your email marketing campaign to be effective, you need to know what the return on investment (ROI) looks like. By understanding how much you’re spending on each email and what type of results you’re seeing from those emails, you can make informed decisions about whether or not email marketing is right for your business.


How to Measure Marketing ROI

Email marketing is one of the most powerful forms of marketing today. Unfortunately, not many businesses know how to measure the ROI of email marketing campaigns. Here are four key metrics you should track when evaluating your email marketing campaigns:

  1. Total opens: This is the number of individual emails that have been opened by recipients.
  2. Open rate: This is the percentage of emails that have been opened by recipients.
  3. Click-through rate (CTR): This is the percentage of clicks on links in emails that result in a visit to a website.
  4. Lead conversion rate: This is the percentage of leads who convert into customers.

By tracking these four key metrics, you can determine which email campaigns are working best and modify or adjust your strategy as needed.

Tips For Increasing ROI

Email marketing is a great way to keep your customers connected with you, but it can also be a costly investment. Here are some tips to help you maximize the return on your email marketing investment:

  • carefully target your subscribers
  • test different subject lines and content types
  • track your open rates and click-through rates

SEE: 5 Best Welcome Email Examples To Engage Your Customers

Platforms To Increase ROI

Email marketing can be a great way to reach out to customers and promote your business. However, not all email platforms are created equal when it comes to ROI. Here are three of the best email marketing platforms for businesses:

  1. MailChimp: This platform is well-known for its easy-to-use interface and wide range of features. It offers a free plan and several paid plans with different features and limits. MailChimp has been found to be the most effective email marketing platform for small businesses. According to one study, MailChimp can generate a return on investment (ROI) of up to 1,500%.
  2. Hootsuite: Hootsuite is a social media management platform that also includes email management capabilities. It has a free plan and several paid plans with different features and limits. One study found that Hootsuite generates a ROI of up to 760%.
  3. SendGrid: SendGrid is another email marketing platform that offers a free plan and several paid plans with different features and limits. One study found that SendGrid generates a ROI of up to 560%.

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