Return on investments (in English “return on investments”, often referred to only under the abbreviation ROI) is a basic e-mailing metric that plays a vital role in evaluating whether the campaign was successful or not. Therefore, it deserves a separate article so that you know everything you need to know about it. Brief, clear and to the point. So let’s get to it.
What is ROI?
This parameter expresses the ratio of net profit compared to money spent. Thus, the return on investment in percentages indicates the profit from the spent amount that you invested in the given campaign.
How is return on investment calculated?
The ROI won’t be shown to you by the emailing tool, you have to calculate it yourself . There are several ways to calculate, one of them is this:
(return on investment ÷ investment) × 100, so (profit from campaign – cost of campaign) ÷ cost of campaign × 100
If, thanks to the newsletter, you sold goods from which you h malaysia whatsapp number data whatsapp data ad a profit of 10,000 crowns, and its preparation and other costs for sending it out cost you 2,000 crowns, the return on investment of the given campaign will be (10,000 – 2,000) / 2,000 * 100 = 400%.
Why is it important to track ROI?
Return on investments shows what you’re probably most interested in – what net profit the whole campaign brought you after all costs have been deducted . And based on that, you can easily evaluate if it has met its goal and if your marketing effort is effective, or if you’re burning more money on it than you’re getting back.
How do you know if you’re good at emailing? After all, by monito can i have a euro? ring and evaluating the seven main metrics of email marketing. You can find out how in our e-book.
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What is the average return on investment? And how good is it?
Barilliance’s internal research showed that the average ROI in 2021 was 3800 % . In layman’s terms: each entrepreneur, on average, made 38 green pieces of paper with a portrait of George Washington out of one dollar invested in e-mailing.
18% of the top performing firms made even more than 70% of shopping data each dollar, while 20% of companies at the bottom of the table made less than 5% of each dollar invested.
Evaluate email campaigns correctly
But this does not automatically mean that they would be unsuccessful or that their campaigns would not pay off economically. Only you can determine if a given return on investment is good or not .
No one else knows how much time and effort you put into this campaign. And how high sales do you need to return not only the funds spent, but also these hard-to-measure commodities.
How can ROI be increased?
So that you create and send quality e-mails everywhere. We keep spinning the same thing that we repeat in almost every article. The best prospects for high ROI are campaigns that boast:
interesting subjects ,
effective CTAs ,
precise segmentation ,
quality personalization.
You can then continuously adjust all of the above through A/B testing , thanks to which your next email will have better results.
And that’s it, friends
This concludes our series on the most important email marketing metrics. To keep this information nicely together, we are preparing an e-book about metrics for you. You can find more news, instructions, case studies or tips and tricks on our blog.