Email Marketing Term
What is Email ROI?
Return on investment from email marketing, measuring revenue generated relative to costs.
Email consistently delivers the highest ROI of any marketing channel - averaging $36-42 for every $1 spent, depending on the study.
ROI calculation: ((Revenue - Cost) ÷ Cost) × 100
Costs include: - ESP subscription - Email design/development - Content creation - List acquisition - Staff time
To track ROI accurately, implement proper attribution. UTM parameters, dedicated landing pages, and promo codes help attribute revenue to specific emails.
Segmented, automated, and personalized emails drive the highest ROI. A cart abandonment email generating a $100 order costs almost nothing to send.
Examples
- $42 average return per $1 spent on email
- Cart abandonment emails: 500%+ ROI
- Welcome series ROI often exceeds 1000%
Tips for Email ROI
- ✓Track revenue with UTM parameters
- ✓Calculate ROI by campaign type
- ✓Focus on high-ROI automations first
- ✓Include staff time in cost calculations
Related Terms
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