The roi of email marketing
Posted: Tue Dec 03, 2024 9:17 am
Email marketing for loyalty can be extremely efficient. According to the Direct Marketing Association's latest Response Rate Report, the ROI for loyalty email marketing in 2012 was $28.50 in sales for every $1 invested. However, we were struck by the following data on email marketing ROI that we saw in the MarketingSherpa 2013 Email Marketing Benchmark Report .
Q: Which statement best describes your organization's perception of email marketing's ROI (return on investment) at budget time?
From this data, it can be concluded that a large percentage of petroleum manufacturers email lists marketing professionals have the perception that email produces a positive ROI, which is true. However, they do not base this conclusion on concrete measurements. It is surprising that 41% of professionals claim not to have a methodology to measure the ROI of Email Marketing in their organization .
Some of the most common reasons we often hear for not measuring the ROI of Email Marketing are, on the one hand, that there is no ability to link sales in e-commerce with email, and also that there is no clear measure of the direct costs associated with a campaign.
In fact, to determine the ROI of email marketing, it is not enough to measure the CTR and the conversion rate, but you also need to know the revenue generated and the costs of the campaign (usually CPM and creativity) . With this data, we can calculate the ROI of the investment in email marketing (Net revenue / costs) or the revenue generated by an email sent (Net revenue / total emails sent).
Another interesting metric is the Customer Lifetime Value , which sheds light on the lifetime value of a user.
Q: Which statement best describes your organization's perception of email marketing's ROI (return on investment) at budget time?
From this data, it can be concluded that a large percentage of petroleum manufacturers email lists marketing professionals have the perception that email produces a positive ROI, which is true. However, they do not base this conclusion on concrete measurements. It is surprising that 41% of professionals claim not to have a methodology to measure the ROI of Email Marketing in their organization .
Some of the most common reasons we often hear for not measuring the ROI of Email Marketing are, on the one hand, that there is no ability to link sales in e-commerce with email, and also that there is no clear measure of the direct costs associated with a campaign.
In fact, to determine the ROI of email marketing, it is not enough to measure the CTR and the conversion rate, but you also need to know the revenue generated and the costs of the campaign (usually CPM and creativity) . With this data, we can calculate the ROI of the investment in email marketing (Net revenue / costs) or the revenue generated by an email sent (Net revenue / total emails sent).
Another interesting metric is the Customer Lifetime Value , which sheds light on the lifetime value of a user.