ROI, or Return on Investment, is the measure that helps to evaluate the performance of an investment.
To calculate ROI, you need to take the gain of an investment, subtract the cost of the investment, and divide the total by the cost of the investment. Or simply:
The results of the 2013 Email Marketing Benchmark Report
The report released was used to summarize the survey conducted among online marketers on how they evaluate the ROI of email marketing for their organizations. The results have shown that:
- the average ROI of email marketing, according to marketers, is 119%;
- the highest ROI is among B2B companies (127%);
- marketers from companies that send out less than 100,000 emails per month evaluate their campaign ROI as 139%; and
- the marketers of companies that launch email campaigns with over 100,000 emails per month claimed the lowest ROI among the rest of the cases (94%).
In email marketing it is recommended to measure the ROI to be able to see which campaigns work better and which campaigns are not effective.
How do you calculate the ROI in email marketing?
Here is a general formula:
S is the sales, which is derived from automation campaigns.
CS is the cost of the sales, which is derived from automation campaigns.
EMC is the costs spent on email marketing.