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iMeda Connection – Why you should measure email ROI

iMeda Connection – Why you should measure email ROI

iMediaConnection - Why you should measure email ROI

By: iMedia Connection

Does your organization measure the return on investment (ROI) of your email marketing efforts? If you’re like a majority of marketers today, your answer is probably “no” to that question. You may track the success of individual email campaigns by measuring such metrics as open and click-through rates. Plus, you likely know what portion of your total marketing budget that email marketing represents. But that doesn’t provide a good measure of the success rate of your overall email program.

So why should you measure email ROI? First of all, it provides a great benchmark metric for comparing email marketing to your company’s other marketing channels, such as direct mail, print advertising, social media, and pay-per-click. Plus, by knowing your email ROI, you can more readily justify your email marketing program to clients and bosses, as well as justify investments for improvements to future email campaigns.

How do you measure email ROI?

On the most basic level, ROI is calculated with the following equation:
(return – cost)/cost

For any of you who have tried to calculate email ROI, you know accurately identifying and incorporating all of the components that make up both cost and return is a challenge. That’s likely why many marketers today use the revenue per email (RPE) metric to help them get a handle on the value of their email programs.

RPE is calculated by using the following equation:
RPE = total revenue generated/(# of emails sent – # of emails bounced)

The good thing about calculating RPE is that you don’t need to determine all the costs of your email marketing campaigns. Plus, it tells you about how much revenue your email list is generating. Unlike ROI, RPE doesn’t tell you the profit (or loss) of your email marketing program. But you can bet that if your RPE is going down, so is your ROI.

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  • Profile:  Jeff Ginsberg has 17+ years’ experience and is an industry known authority on email marketing who gets in the trenches with clients and helps them fulfill their marketing objectives, increase revenue and brand engagement. Clients rely on him and his team at The eMail Company to provide them with expertise from strategy to technology and from campaign management to channel integration. Jeff has worked with clients across all spectrums in the financial, automotive, retail and consumer packaged goods space. His experience covers both B2B and B2C markets. He has a strong background in educating and training agencies and clients about email best practices and is a wealth of knowledge when it comes to marketing tools and vendor selection. While Jeff’s team may be small, they know how to solve BIG email marketing problems. Looking for help with your next campaign? Don’t be afraid to give him a call – Jeff and his team ready to help you today. Give me a call: Toll Free: 877-We-eMail (877-933-6245) Local: 416-225-7711 eMail: jeff@theemailcompany.com
  • Website:  http://www.theemailguide.com
  • Twitter:   http://www.twitter.com/theemailguide
  • LinkedIn:   http://ca.linkedin.com/in/chiefemailofficer
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