How to calculate the ROI of your email marketing
Posted: Thu Dec 26, 2024 9:00 am
There are a couple of ways to determine what you're earning from your emails versus what you're spending. Try this formula first to get a holistic view of whether your efforts are paying off (or not).
Step 1: Determine how much you are spending
The first thing you need to calculate is the total amount of money you spend on your email marketing. The big cost factors you need to consider here are the expense on your email marketing software + labor costs.
Step 2: Determine how much you earn
Calculate the amount of sales generated by your email campaign over the same time period for which you calculated your total spend. Profits aren't the only valuable thing you get from email marketing, but they're what you'll want to consider when calculating the basic ROI on your money.
Step 3: Do the math
The email marketing ROI formula is:
(Amount earned – Amount spent) / Amount spent
If you spent $500 on email marketing bahrain telegram data a month and made $1,500 in sales as a result, your calculation would be:
(1,500-500)/500 = 2
You can then multiply this by 100, which shows a ROI of 200%.
If you want to get even more specific, you could calculate the total amount spent and earned per lead , which in addition to showing your ROI, will also tell you if you're targeting the ideal audience.
All you have to do is divide the amount you spent by the number of leads you converted into sales during that month. Once the total of all your converted sales is added up, you can compare it to the total amount you spent to determine if your efforts were successful.
Use your ROI to find out if your email marketing strategy is successful, but also to make changes to it as needed. The more you know about the value of your performance, the better you can adjust your campaigns to achieve more positive results.
Step 1: Determine how much you are spending
The first thing you need to calculate is the total amount of money you spend on your email marketing. The big cost factors you need to consider here are the expense on your email marketing software + labor costs.
Step 2: Determine how much you earn
Calculate the amount of sales generated by your email campaign over the same time period for which you calculated your total spend. Profits aren't the only valuable thing you get from email marketing, but they're what you'll want to consider when calculating the basic ROI on your money.
Step 3: Do the math
The email marketing ROI formula is:
(Amount earned – Amount spent) / Amount spent
If you spent $500 on email marketing bahrain telegram data a month and made $1,500 in sales as a result, your calculation would be:
(1,500-500)/500 = 2
You can then multiply this by 100, which shows a ROI of 200%.
If you want to get even more specific, you could calculate the total amount spent and earned per lead , which in addition to showing your ROI, will also tell you if you're targeting the ideal audience.
All you have to do is divide the amount you spent by the number of leads you converted into sales during that month. Once the total of all your converted sales is added up, you can compare it to the total amount you spent to determine if your efforts were successful.
Use your ROI to find out if your email marketing strategy is successful, but also to make changes to it as needed. The more you know about the value of your performance, the better you can adjust your campaigns to achieve more positive results.