Email Marketing ROI Calculator
Learn how our email marketing ROI calculator gives you quick and accurate results about the profitability of your email campaigns.
Results
How To Use InboxArmy's Email Marketing ROI Calculator
Fortunately, there's a much easier and more accurate way to calculate email marketing ROI - InboxArmy's calculator.
Our tool is intuitive, easy to use, and gives you results in a matter of seconds.
Here's how to use it:
That's it!
Now, all you need to do is sit back while the tool calculates your ROI for you. Then, you can use the results to evaluate the success of your email marketing strategy and pinpoint areas for improvement.
What Is Email Marketing ROI?
Email marketing ROI is a metric used by marketers to measure the profitability of their campaigns.
It shows marketers the net profit generated from their campaigns relative to the amount of money they've invested in them.
So, why is it important for businesses to measure ROI?
It's because it helps them to:
- Justify marketing investment.
- Evaluate the overall effectiveness of their email marketing strategy.
- Compare the performance of their email channel to other marketing channels.
- Identify ways to improve a specific email marketing campaign.
What Is A Good Email Marketing ROI?
What's considered to be a "good" email marketing ROI depends on factors like the business' size, the industry, and the specific goals of the campaign. However, there are some benchmarks email marketers can use to evaluate their own business's ROI.
The average ROI for email marketing is $36 to $42 for every $1 spent, for example.
As mentioned, this varies widely. For instance, a "good" ROI for a small business is typically around 15% to 30%. For larger businesses, it's usually around 10%.
This also differs depending on the industry or niche you operate in. To give you a better idea of how industry affects ROI, here are some averages for different industries:
e-commerce,
and consumer
goods
Email Click-Through Rates by Industry
How To Calculate Your Email Marketing ROI
Ok, how do you actually calculate email marketing ROI?
One way to do it is to deduct the amount of money you spent on an email marketing campaign from the total revenue generated by the campaign and then divide that by the total email cost.
Here's what that calculation looks like:
Email marketing ROI = (Revenue from the campaign - Total cost of email) / Total cost of email.
Yet, this formula will only give you a fairly basic representation of your ROI. Some of the reasons for this include:
- The difficulty of attributing revenue to email campaigns accurately, especially if your business has multiple marketing channels.
- The fact that the total cost of campaigns can vary depending on your expenses, like personnel, software, content creation, and maintenance expenses.
- Some campaigns have delayed, long-term effects on revenue which aren't captured in immediate calculations.
Tips To Increase Your Email Marketing ROI
Now, what if you get your results and they're not as good as you were expecting? Don't worry. There are plenty of steps you can take to improve the ROI of a specific email marketing campaign, such as:
Use segmentation to target sub-groups of your audience based on characteristics like buying behavior, preferences, and demographics. 
Place sign-up forms on pages with high purchasing intent, like product pages. 
Use dynamic content within your emails to make them more engaging. 
Implement geo-targeting so that you can provide location-based offers. 
Craft highly engaging subject lines to increase open rates. 
Use automation to set up triggered emails based on customer behavior, as these types of emails often have higher open and click-through rates. 
End your emails with compelling calls-to-action (CTAs) that create a sense of urgency and encourage users to convert. 
Use A/B testing to test email elements like layouts, CTAs, and subject lines. 
Ensure every email you send provides value to the user. This could include informative content, exclusive discounts, and personalized recommendations. By following these tips, you can increase the amount of revenue your email campaigns generate and, in turn, improve your ROI.
FAQs
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Am I guaranteed to see the results I obtain from this ROI calculator?
InboxArmy's email marketing ROI calculator provides estimates based on the data you provide, which means we can't guarantee specific results. The tool should be used as part of a broader analysis that considers a wide range of factors.
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How often should I calculate my email marketing ROI?
You should calculate your ROI after each email campaign, at least. However, it's often best to do this monthly so you can assess your campaigns' performance and make adjustments while they're still in progress.
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Can I use the ROI calculator for different types of email campaigns?
Absolutely! You can use InboxArmy's ROI calculator for any type of campaign, including newsletters, promotional emails, and seasonal emails.