How to know your return on investment (ROI)

In any Email Marketing campaign, ROI is a term that surrounds us constantly, lurking so that we get the best possible percentage.

When we talk about ROI we refer to Return on Investment. It is essential to measure it in our business to control our profits with respect to the money invested with each campaign, to know if it is succeeding or if we should improve it.

Return on investment can be measured in two different ways. The first and most common is following the traditional formula:

 

Total Email Revenue – Total Email Costs  / Total Email Costs = ROI

In this way, for example, if we generate €200,000 and spend €20,000, they would mean benefits of €180,000. If we divide this amount by the €20,000 of expenses, you get €9 per euro invested, a 900% ROI.

Another simple way is to divide your total income by the number of emails sent, obtaining the income generated by each email. By calculating the costs per email, we can also obtain the ROI of each email.

Calculate ROI more accurately:

To accurately calculate the costs of our email campaigns, we must take into account all kinds of costs such as the email service provider, employee salaries, and all the technologies and tools that we need to carry out our campaigns and deliveries.

Accounting for all these expenses is difficult, but the more data we have, the more accurate ROI we will get.

On the other hand, regarding the income generated, we must do a study of the type of remuneration we receive when sending emails, since depending on the campaign we will receive new users in our Database, promotions that will lead to sales, subscriptions… And many times all this will lead to long-term sales.

With all this, it is clear to us that getting to calculate our ROI accurately is complicated but it is necessary to always take it into account to carry out our Email Marketing campaigns.

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