FREE Email Marketing ROI Calculator
If you have your own online business, you know the importance of implementing different forms of marketing is of utmost importance. You need to learn to adopt different forms of marketing ideas to make people or your audiences aware of your latest products and offerings.
Email Marketing is one such marketing strategy that merchants can use to engage with their audiences. However, email marketing needs extensive research, since you need to sort and list your audiences before sending them emails.
Besides this, before choosing an email marketing strategy you should learn about its risks and benefits. Perhaps you should learn if this strategy will help you in generating new leads, or reach your target.
To help you find that, we introduce you to our Email Marketing ROI calculator which will give you insight into the success ratio of your email marketing strategy.
What is Email Marketing?
Email Marketing can be best said as a direct form of marketing even digital marketing which is used to make people aware of your products or services and gain new customers.
It is now one of the most used marketing strategies to gain new customers. If they find interest in your offerings sent through email attachments, then they may visit your channels.
This way you can gain new customers, and even remind your existing customers about the trending offers or send them some reminders about their abandoned carts. It is one of the cheapest and most effective forms of marketing which any company can implement.
What is Email Marketing ROI?
First of all, ROI stands for return on investment. It is a measure by which you can identify the success ratio of an investment. Since you are investing in a marketing strategy called email marketing, you should first understand, what is email marketing ROI.
In this case of marketing, Email Marketing ROI is a measure, which will detect how many units your investment will return you profits.
Email Marketing ROI Formula
There is only one direct formula by which you can find out the return on investment from an email marketing strategy.
The formula depends on your overall gain from the email marketing campaigns and overall spending for your email marketing campaigns. If you have already achieved data of these two values, then you can easily find out Email Marketing ROI.
The formula for finding ROI stands out to be
(Gain – Spent) / Spent
How do you calculate ROI for email marketing?
To calculate the Email Marketing ROI you need to learn about two things from your online store. The first is the total amount gained from this investment and the other is how much you spent on this investment.
Let us learn about these things in detail.
1. Calculating your Spending
Luckily this is a straightforward calculation. You just need to find the ESP of your investment and how much you are spending overhead for sending those direct emails to your audience.
In simple words, with no other additional spending for this marketing strategy, the formula for finding your overall spending stands out to be ESP + Total team hourly rates.
The result that you learn using this formula will be your overall spending behind your email marketing strategy.
2. Calculating your Gains
Findings your gains from the email marketing strategy is very easy. You just need software to find these data for you. For instance, Google Analytics can help you find how many orders have been made by customers gained from users.
Also, if you are using any hosted e-commerce platform, the advanced tools of the platform will share the details of how many subscribers or customers you have gained from using an email marketing strategy.
Once you learn both of these values, you can directly implement the Email Marketing ROI formula and find the ROI of your email marketing strategy.
But finding the ROI each time you use email marketing can consume a lot of time and energy. Instead, you should try using the Email Marketing ROI Calculator.
Email Marketing ROI Example
Let’s say,
- The currency is $,
- Audience Size 1000$
- Email Campaigns – 10000
- Response Rate – 80 %
- Email Conversion Rate – 20
- Average Purchase made by email customers – $200
Let us take an email marketing campaign that has gained the above-mentioned data. So, when these data are incorporated into the Email Marketing ROI calculator, it will share
- Cost per contract – $10.00
- Number of Responders – 800.00
- Number of Buyers – 160.00
- Revenue Generated – $32,000.00
- Profit – $22,000.00
- Cost per Responder – $12.50
- Cost per Buyer – $62.50
How To Use The Email Marketing ROI Calculator?
To use the Email Marketing ROI Calculator of EComBusienssHub, you can follow the steps given below.
Step 1: First of all you will need to achieve data on certain things.
For example, you need to put your total audience size, the total number of email campaigns you hold, the total response rate, the email conversion rate, and the average purchase made by customers gained in email marketing. All of this data can be learned from the data shared with you by the hosted platform tools.
Step 2: Enter details into the Calculator
Once, you have learned about all of this data, enter them in the calculator. Ensure to choose the currency.
Step 3: Click on Calculate
In this step, re-check all of your details, and then click on the Calculate option given below. Now it will share the details of your email campaign.
If you wish to find data for your other email marketing campaign you can reset it to erase the details of your previous data.
Why is Email Marketing ROI important?
There are many reasons why one must implement the use of Email Marketing and also why to find a return on investment from using this strategy. Below mentioned are a couple of reasons why Email Marketing ROI is crucial for your online store.
- Email Marketing is one of the most cheapest and effective marketing options, but one must also consider its risk. Although there are not many risks included with this marketing strategy, finding the return on investment from this marketing strategy will keep you a step ahead in planning your other marketing campaigns.
- You must learn which strategy will best suit your company. Using any random marketing strategy without checking into its capabilities and rate of return can be simply a waste of your time and money. Instead one must check the ROI earned from the email marketing strategy and if this is fruitful only then activate it.
Email Marketing FAQs
Below are frequently asked questions regarding email marketing:
Is email marketing still worth it?
The email marketing strategy was first initiated in 1978. And since then, email marketing has been one of the key ideas to gain and attract new customers. It is one of the best forms of advertising your products since people seem to trust email attachments from the company’s mail id more than any other form of advertisement.
The fact that email marketing does not cost much, and can be initiated and completed within a few hours, makes it more useful.
Does email marketing have the highest ROI?
Out of all the forms of marketing email marketing proves to offer the highest ROI. The cheap cost of this form of marketing strategy makes it possible to offer the highest ROI out of any other forms of ad campaigns.
One can always go for content marketing campaigns, but it can cost the merchant extra money for creating those content. But email marketing on average shares 122% of ROI. This rate is typically 4 times higher than any other form of marketing strategy ROI.
Is the eComBusinessHub Email Marketing ROI Calculator Free To Use?
Yes, eComBusinessHub’s Email Marketing ROI calculator is a free-to-use tool.
It also has a reset button which lets you clear the data of your previous entries, and find out the ROI for a new email marketing campaign.
Is Email Marketing ROI calculator useful for dropshippers?
As mentioned earlier, marketing is key to business success. If you want to increase the reach of your company create brand awareness, or display your new products, then you need to adopt the ideas of marketing your brand.
Email marketing is one of the best options for marketing, every merchant on the internet should learn to use it. Whether drop shippers, print-on-demand users, or general merchants holding their inventory needs to gain customers, to make new orders.
Thus every one should use this marketing strategy to bring back existing customers to purchase new items or gain completely new customers.
Final Thoughts
Email Marketing is in use for more than three decades now, and is still the trendiest form of marketing strategy. Every company, big or small, still uses this marketing strategy for brand awareness. Thus you should also consider using this marketing strategy.
But before that, you should also learn how to find out the ROI of this marketing strategy, since it will help you in building a strong marketing budget. eComBusinessHub Email Marketing ROI Calculator can help you find those results.
