Understanding Email ROI
Email marketing consistently offers one of the highest returns on investment (ROI) of any marketing channel. However, tracking it accurately requires accounting for all costs, not just the ESP subscription.
How to Calculate ROI
The formula is simple: (Revenue - Cost) / Cost * 100.
- Revenue: Total sales directly attributed to the email campaign (usually tracked via UTM parameters or coupon codes).
- Cost: Includes software costs (ESP), creative costs (design/copywriting), and labor hours.
What is a Good ROI?
The average email marketing ROI is often cited as $36 for every $1 spent (3600%). However, this varies by industry. A healthy campaign should at least be profitable (ROI > 0%).