Email Marketing is a great channel not only to promote brand and content generally. After all, one of the stars of email is commercial campaigns – to generate sales, signatures, leads, etc.
In fact, what makes email campaigns so fit for promoting sales is the fact it’s a channel highly trackable and very cheap. Because of that, the Return On Investment (ROI) of email marketing is very high.
This data speaks for itself:
- 66% of consumers have already a purchase online as a result of an email marketing message (Direct Marketing Association).
- 60% of the marketers believe that email marketing has a positive ROI (Marketing Sherpa).
- Email marketing has a ROI of up until 4300% (Direct Marketing Association).
This last information is the most important. This means that if you spent U$ 500,00 in a campaign, you can have up until U$ 21.500,00 in return, if you followed every little good practice and have a very high quality list.
The point is: are you calculating the ROI of your messages? It’s crucial for you to verify if your campaigns are generating the result you expect, and if you are making the right calls or not.
But how to calculate the return of a campaign? Enter the Email Marketing ROI Calculator from Mailee.me.
We at Mailee.me have created a calculator especially meant for this. You fill in data, and it calculates immediately if you recovered your investment, or if are still behind.
Download here for free the Email Marketing ROI Calculator >>
How to use it
Using the calculator is very simple.
The ROI calculator is meant to be used in sales campaigns. The concept of ROI also exist for non-commercial campaigns (there are several types of return a campaign can bring), but since financial return is the easiest to measure, the calculator is applicable only to commercial campaigns based on monetization.
Say you have just sent an email marketing campaign and wants to calculate your ROI. Let’s go.
It’s split in two columns. Left-hand side is for your data. In it, you have the cells in which you will insert your information, so the spreadsheet can calculate.
You should fill the following fields:
- Sending Volume – Total number of contacts used in the message, including bounces.
- Open Rate – What was the rate (%) of contacts that opened the message? Mailee calculates this automatically in each sent message’s report.
- Clicks – The raw amount of unique clicks on your messages (that is, counting only one per contact, without repeated clicks). You can find this data on Mailee on the report of each message, under the summary.
- Conversions – This information is related to your system. Inform how many conversions were generated from this specific message. This is easy to identify with the integration between Mailee and Google Analytics.
- Average purchase value – State what is the average purchase value of a client in your store, when they come from an email campaign.
- Total costs – How much you’re investing to send the campaign. This may be just the price of the sending platform (such as the credits package on Mailee, for instance) or can be this plus other costs you might have, such as creating the layout and the time of the employee working on this. What works best for you.
The information of openings, clicks and conversions are dynamic, that is, they change through time. Thus, wait some time until you grab Assim, procure aguardar algum tempo até pegar estes dados para preencher na planilha. Recomenda-se no mínimo 48 horas após o envio ser realizado.
After inputting the data, you get the results on the right-hand side column. The fields are the following:
Total of openings – Calculates how much opens were generated on your message, from the percent information.
Clickthrough rate – This informs what is the rate of people that opened the message and then clicked on it. Pay attention – it’s different from the one displayed on Mailee, since that compares how many people clicked and opened the message based on the total number of contacts.
Conversions – Based on the number of conversions you informed, this cell calculates what is the conversion rate, based on the number of people that clicked on your message.
Below that, you have the total revenue generated from the sending, the profit and the amount of conversions needed for breaking even.
Finally, you have the ROI. It demonstrates what was the return from the investment you made, in %. Thus, any positive return, that is, above zero, means that you earned something beyond what you invested (even if not something large). A 25% ROI means that, beyond what you invested initially, you earn 23% more. A 100% ROI means that you doubled what you invested. A negative ROI means that you didn’t recovered your investment, and a neutral rate (0,0%) means you’re in a tie: recovered the investment, but didn’t profit.
All of this is available easily with the Email Marketing ROI Calculator from Mailee. The best way of learning how your efforts are doing is measuring.
Download now the calculator and check if your efforts are heading to the right way.
