How Much Are Your Emails Worth?
As marketers, we’re continuously asked to prove the effectiveness and ROI of our organisation’s marketing efforts, and even more so when it comes to email marketing. Email marketing is without a doubt the undefeated champion of all marketing channels. In fact, email marketing will earn you £33 (€39) for every £1 (€1.2) spent —if not more, when done right.
Are You Doing Email Marketing Right?
Calculate your email marketing ROI with our tool below to find out.
To get started, enter your values in the input fields below or adjust the sliders. Your results will be generated in real-time to the right.
Here’s an example:
You have an abandoned cart workflow consisting of three emails and you want to calculate the ROI of those emails combined.
The open rates are as follows:
- Campaign 1: 25%
- Campaign 2: 20%
- Campaign 3: 15%
To calculate the ROI of your workflow, add each open rate and divide by the number of emails (in our example, three).
Your workflow ROI is 20%.
Calculate your Email Marketing ROIFirst, choose your preferred currency.
You can also calculate the average ROI of multiple campaigns. To do so, you simply insert the overall average for your chosen campaigns, which is the average of each campaign, divided by the number of campaigns.
Send VolumeNext, enter the total number of subscribers your campaigns are sent to.
Pro Tip: remember to exclude bounced emails.
Campaign's costThen, enter the total cost of a campaign.
While this includes a number of costs (e.g. cost of labor if an employee wrote the campaign), the most common expense is the monthly fee for your email service provider (ESP).
To calculate the cost of a single campaign, divide the monthly fee by the number of monthly campaigns.
Open RateAfter that, enter your open rate.
This is the percentage of subscribers that opened your email. While email open rates vary from industry to industry, the average open rate, according to Smart Insights, is 24.79%.
To get a more accurate reading, check the dashboard in your ESP.
Click Through RateNext, enter the percentage of subscribers that clicked-through in your email.
Your click rate is also available in the dashboard of your ESP.
Conversion RateThen, enter your conversion rate.
This is the percentage of subscribers that click through in your email and convert into customers. This number is available in Google Analytics (providing you have E-Commerce Tracking enabled).
Average Value of a conversionFinally, enter the average spend per customer (ASC) (or average order value as it’s known in Google Analytics).
This is calculated by the total sales revenue made to date, divided by the total number of customers to date.