Email Marketing ROI Calculator
Campaign Performance Summary
Total Revenue: $0.00
Total Profit: $0.00
Total Conversions: 0
Cost Per Conversion: $0.00
Calculated ROI
0%
How to Use the Email Marketing ROI Calculator
Return on Investment (ROI) is the most critical metric for evaluating the success of your email marketing campaigns. This calculator helps you determine how much money you earn for every dollar spent on your email list outreach.
Understanding the Inputs
- Total Emails Sent: The number of unique recipients in your campaign blast.
- Open Rate: The percentage of recipients who opened your email. High open rates indicate effective subject lines.
- Click-Through Rate (CTR): The percentage of users who clicked a link within the email after opening it. This measures the effectiveness of your content and call-to-action (CTA).
- Conversion Rate: Of the people who clicked, how many completed a purchase or a desired action on your website?
- Average Order Value (AOV): The average amount of money a customer spends when they convert.
- Total Campaign Cost: Include software fees (ESP), design costs, and copywriting expenses.
Example Calculation
Let's say you send a campaign to 5,000 subscribers.
- 20% Open Rate = 1,000 Opens
- 5% Click Rate = 50 Clicks
- 10% Conversion Rate = 5 Conversions
- $100 Average Order Value = $500 Revenue
- If the campaign cost $50, your profit is $450.
- ROI: ($450 / $50) * 100 = 900%
Tips to Improve Your Email ROI
If your ROI is lower than expected, consider these three strategies:
- A/B Test Subject Lines: Improving your open rate naturally increases the number of potential clickers at the top of the funnel.
- Optimize Landing Pages: Ensure the page your email links to is relevant and high-converting to boost your Conversion Rate.
- Segment Your List: Targeted emails often have 14% higher open rates and 100% higher click rates than generic blasts, significantly impacting the bottom line.