Email ROI (Return on Investment) report is a document that provides insights into the effectiveness of your email marketing campaigns. This report can help you identify the success of your email campaigns in terms of revenue generation and conversion rates, and help you make data-driven decisions to improve the ROI of future email campaigns.

Average email marketing ROI

The average ROI through email marketing is $36 for every $1 spent. Simply put, you invest a dollar and in return receive 36 times from it.

Reports further state that of all the email campaigns being sent, targeted emails and list segmented emails drive 36% of email marketing ROI.

More data on email ROI

A report from Litmus further broke down the ROI of email marketing by industry:

  • Software & technology: 40:1
  • Marketing, PR, & advertising agency: 42:1
  • Retail, ecommerce, & consumer goods or services: 45:1
  • Media, publishing, events, sports, & entertainment: 45:1
  • Travel, tourism, & hospitality: 53:1

It’s clear that email marketing holds to (or even exceeds) its average ROI of 42:1 when examined across specific industries.

Wondering if email marketing can actually drive sales? According to a report from the Direct Marketing Association, 66% of consumers have made a purchase online due to an email marketing message.

Email still holds its place as the most effective form of marketing

With all the attention garnered by social media and smartphone app marketing, some might regard email marketing as old-fashioned compared to newer tech toys. The contrary is true, however, as email marketing not only remains effective but widely used. It also allows companies to employ customer relationship management, or CRM, to create better targeted and highly personalized customer messages.

Email marketing reaches customers where they spend a lot of time each day — their inbox.

Key Metrics in Email ROI Report

The following are some key metrics that you should include in your email ROI report:

  1. Open Rate: The open rate is the percentage of recipients who opened your email. A high open rate indicates that your email subject line was compelling and caught the attention of your recipients.
  2. Click-Through Rate (CTR): The CTR is the percentage of recipients who clicked on a link within your email. A high CTR indicates that your email content was engaging and drove recipients to take action.
  3. Conversion Rate: The conversion rate is the percentage of recipients who completed a desired action, such as making a purchase or filling out a form, after clicking on a link within your email.
  4. Revenue Generated: The revenue generated is the amount of money generated from your email campaign. This can be calculated by tracking the number of sales or conversions that resulted from your email campaigns.
  5. Cost of Email Campaigns: The cost of email campaigns includes the cost of creating email content, designing email templates, and sending emails. It also includes any costs associated with email marketing platforms or tools you use to manage your campaigns.

Calculating Email ROI

To calculate email ROI, use the following formula:

Email ROI = (Revenue Generated – Cost of Email Campaigns) / Cost of Email Campaigns x 100

The email ROI report should clearly show how much revenue was generated from the campaign and how much it cost to execute. With this information, you can calculate the email ROI and determine whether the campaign was profitable or not.

Improving Email ROI

To improve email ROI, consider the following strategies:

  1. Improve the quality of your email list by regularly cleaning it up and removing inactive subscribers.
  2. Personalize your emails by segmenting your list based on demographics, behavior, or preferences.
  3. Test different email content and subject lines to determine what works best with your audience.
  4. Optimize the timing of your emails to increase engagement and click-through rates.
  5. Continuously monitor and analyze your email campaign metrics to identify areas for improvement.

Conclusion

An email ROI report is an essential tool for evaluating the effectiveness of your email marketing campaigns. By tracking key metrics and calculating email ROI, you can determine the success of your campaigns and identify areas for improvement. By continuously optimizing your email campaigns, you can increase ROI and drive more revenue for your business.