You can make the process of email marketing ROI calculation easier and faster by using the best online calculator: Popupsmart’s Email Marketing ROI Calculator.
To see if you are doing email marketing right, enter the correct values to the input fields, and then interpret the results.
Select Preferred Currency: Choose your preferred currency from the list appearing when you click the arrow.
Email Send Volume: Enter the total number of subscribers in your email list received your email campaigns. Excluding bounced emails would provide you a more convenient conclusion.
Cost of Email Marketing Campaign: Present the total cost of your email marketing campaigns. You may have more than one email marketing campaigns, but examining them separately would ease your job to evaluate different digital efforts of various campaigns generated for different business goals. To calculate the cost of a single campaign, divide the total expense by the total number of your campaigns.
Open Rate: Write the open rate of your email marketing campaign. It is the percentage of subscribers who opened the campaign email. According to a study, the average open rate in email marketing is 21.5%, although it may vary depending on different sectors and industries.
Click-Through Rate: Enter the click-through rate of your email marketing campaign. It is the percentage of subscribers who opened and landed a page by clicking the call-to-action in the email. CTR is also presented in the dashboard of your ESP. According to a study, the average unique click-through rate of email marketing campaigns is 3.3%, although it may vary depending on different sectors and industries.
Conversion Rate: Present the conversion rate of your email marketing campaign. It is the percentage of subscribers who opened your email, clicked the call-to-action in the message, and take the desired action of your business. Conversion rate may be seen via Google Analytics.
Average Value of a Conversion: Lastly, write the average spending per customer. Average value of a conversion is calculated by total sales in a given time and the total number of customers up to that day. It is also known as Average Spend per Customer (ASC) or Average Order Value.
Cost per Contact: It shows how much you spent on a single customer in this email marketing campaign. Cost per contact is the total campaign cost divided by the total number of subscribers your email campaign sent to.
Number of Openings: It represents how many subscribers opened your email from their inboxes. Number of openings is calculated as the send volume times email open rate.
Number of Conversions: It indicates how many conversions you have obtained from the email marketing campaign. Number of conversions is the number of people who reached your website through the call-to-action in your email and took the desired action of your business like downloading an eBook.
Revenue: It is the total revenue of online sales that came directly from the email marketing campaign. Revenue is estimated as total number of conversions times average value of a conversion.
Profit: It demonstrates the profit obtained from the email marketing campaign. Profit is calculated as the total expenses of the campaign subtracted by total revenue.
Cost per Open Email (CPO): It shows how much you have paid to make one customer open the email. To keep this number low, you should send emails to those who really want them.
Cost per Conversion (CPC): It indicates how much obtaining a customer making a successful conversion actually costs you. To make this expense low, you need to offer something irresistible to those who have landed your website through a click.
ROI: It is the percentage of return for the email marketing campaign. For instance, if your ROI is presented as 7900%, it means that you have earned $79 for every $1 spent on this campaign.
Conversions to Break Even: It tells you the significant amount of conversions that you must have in order to obtain zero profit but no loss.