Email Marketing is still considered one of the most profitable of all the marketing methods in the Internet Marketing industry. It is popular and valuable at the same time. This is because it generates more revenue and costs far less to operate, according to industry analysts. In business, this is known as ROI or Return on Investment.
The better your ROI, the more fine-tuned your business is. Fortunately, it does not take too much effort to analyze all the value metrics to evaluate your company’s value.
What is ROI?
In a nutshell, ROI or Return on Investment is the number of revenue dollars you earn compared to the amount of money you have to spend to generate that money. According to marketing trade magazines, Email Marketing generates the highest average of ROI and is far and away better than any other method that is currently being used.
The goal of any business is to make money, and your email marketing business should not be any different. So, you need to be able to streamline your business. And the best way to do that is by setting goals that will help drive your ROI numbers.
For this article, we will focus on seven metrics that you can easily set up and analyzed. Each of the seven metrics includes a really detailed description of each one.
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7 Measurable Metric for ROI on Email Marketing
To measure the metrics that we will be talking about, it is very important to remember to set a realistic goal to be met. By establishing a goal, you will see if what the metric is measuring will deliver the ROI you want to achieve.
- Metric #1 Sales generated by email messaging
Knowing how much money you generate from your email messaging directly is very important to gauge how successful your business is. Fortunately, it is really easy to do that since all of the necessary tools are built into your email systems dashboard.
Again, you can easily determine how much you grossed from each email campaign by dividing the total amount of money you made by the number of emails you sent to your subscriber list.
- Metric #2 Rate of conversion
Conversion is the second most important metric to your business. It truly determines how successful you were for each email campaign. That tells you how strong your call to action was at getting your subscriber list to follow your call to action.
That means they either made a purchase, signed up for an additional service, or something that you were able to benefit from directly. Having that conversion rate number shows you whether or not you need to make changes or keep things running the same.
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- Metric #3 Percentage of your click-throughs
Generating sales from your email campaigns is what ultimately drives your business. So this click-through percentage is extremely telling of how well your emails are at getting your subscriber list at clicking on your links.
The percentage is straightforward to determine since your dashboard tells you how your campaign generated many unique clicks. You then divide that by the total number of subscribers, minus the number of bounced emails, and you come up with your click-through percentage.
- Metric #4 Personal engagement with your email subscribers
Judging how you are engaging with your subscriber list can be determined by analyzing two simple metrics. This is because they are directly related to how they feel about your ability to get through to them.
The one rate metric tells you that they are really into what you are saying in your subject lines. The other metric is the CTR or Click Through Rate is another powerful indicator of how good you are at engaging your subscriber list.
- Metric #5 Speed up your lead acquisition
This is a unique metric because it is more of a comparison number than a hard-fast formula. The key to lead acquisition is moving potential subscribers from sign-up to buyer as quickly as possible. Your lead funnel is at the heart of this number, and that means getting them from the opt-in form to subscriber list to a consistent buyer is where this comparison is the most necessary.
If the number is lower, you will need to reassess your strategy. It is very important that you take advantage of what your metrics are telling you before you lose out on growing your email list as large as possible and as quickly as possible.
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- Metric #6 Total revenue generated through email campaigns
The total revenue metrics are another significant indicator of how strong your email campaigns bring in the money. When the overall revenue is compared to the ROI or Return on Investment, you can see where more of your money can be spent outside your email marketing campaigns to increase your online business’s overall profitability.
If you noticed the opposite is the case, you could easily put more of your money into improving your email marketing budget.
- Metric #7 Improvement of overall website traffic
Brand awareness is vital to any business online or traditional brick-and-mortar-based company. In an email marketing business, website traffic is the gold standard of brand awareness. Therefore, you should easily be able to evaluate whether or not your email marketing campaigns have been able to improve your overall website traffic.
If you are not seeing a bump in traffic right around the time you send out your email campaigns, you might want to tweak your email content. After making any changes to your email messages, you should closely monitor your amount of traffic again.
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The Bottom Line
In the end, ROI is the single most important indicator of the success of your email marketing campaigns. So, take some advice from someone who has been a successful email marketing.