The Unbeatable ROI of Email Marketing: How $1 Can Turn Into $40
Email marketing generates an average ROI of $40 for every $1 spent, making it one of the most cost-effective marketing channels.
What is ROI on email marketing?
ROI in Email marketing stands for return on investment, this is a percentage metric that estimates the profitability of your email marketing campaigns. Here is how it is done, the revenue generated through your campaigns is calculated and the expenses involved is also determined to check if the email marketing efforts was a success or not.
This is How to Calculate Your Email Marketing ROI
ROI in Email Marketing = (Gained Value – Spent Value) / Spent Value x 100%
Let’s get practical, if you invested $10,000 in a marketing campaign and generate $20,000 in revenue, the gained value is $20,000, and the spent value is $10,000. Using the formulae to calculate ROI in e-mail marketing , the ROI would be:
ROI = ($20,000 – $10,000) / $10,000 x 100% = 100%
- Gained Value: The revenue or profit(s) that was generated from your email marketing campaigns.
- Spent Value: The expenses, both direct, indirect, and overhead expenses that was invested in your email marketing campaigns
1: Email Marketing ROI is always High when applied successfully
Email marketing often generate higher conversion rates when compared to other online marketing tactics. Here is why? The probability that someone who bought something from you previously who receives better product offers from you again is high and when your email is well-written with the right clear call-to-action, readers are clear of the next step to take and it drives the conversation closer.
And when the trust is built with repeated customer orders , you don’t need to stress to gather new information as you can always use the information they’ve given you to work on increasing your email’s personalization, engagement and ROI.
This is why marketing emails is more effective to repeat customers than other channels.
2: It is more cost-effective when compared to traditional marketing tactics
Email marketing is relatively cheap when compared to direct mail and print media.
And you can leverage the amazing features of e-mail marketing to get your business in front of your audience. With email marketing, you only need to put in small investment (time and resources ) to be able to create compelling contents.
3: Email Marketing increases website traffic
In the business and marketing world, one of the significant challenges is when it gets to generating website traffic.
But with effective digital marketing tactics businesses can improve their website traffic, it helps in attracting quality backlinks which are powerful search engine optimization (SEO) agents. Though you should have it at the back of your mind that Google ranking takes a lot of time and resources to get to the peak.
Using SEO, it costs not less than $22.24 to achieve what a single dollar can achieve in email marketing and using keyword ads it should cost you up to $17
Email marketing is easy to track and measure
One of the features that makes e-mail marketing outstanding of all other channels is how easily you can be able to keep track of your email ROI.
When you have the right tools in place, you can monitor and take note the amount of people are opening, reading, and clicking on your email content, Maildrip automation tool is one of the best tool that can help you keep track and measure e-mail marketing performances with no stress.
With Email marketing, you can target your for better results.
This is not like other channels that sends out email to the masses. Email marketing delivers to customers directly at their inbox and the feeling of personalization will surely make recipients feel valued and of course they would most likely interact with what you offer.
Unlock the full potential of your email marketing today. Start your journey with MAILDRIP !
