Email marketing is not as simple as sending an email — it’s a marketing tool that can get you the most return on investment with the right strategy. Elevating your campaign’s ROI is critical to its success. You have to make sure that every email sent out brings in more in profit than what was invested in the tool.
But how do you make sure your email marketing campaign’s ROI is reaching its maximum potential?
Understanding Email Campaign ROI
Your return on investment not only measures how much money your email campaign is making, but also how much customers are engaged with your messaging, how many of them actually take action, and the overall impact of your emails. Your ROI is not just one number; it’s a set of statistics and data you can use to further improve your campaign and engage better with your audience.
A higher ROI = a well-crafted email marketing campaign. Remember that your campaign’s goal is not just for your audience to open and read your email, but for them to be guided to following the call-to-action and eventually make a purchase.
How Email Campaign ROI is Calculated
As straightforward as its name might be, this number still needs to be calculated to evaluate if your campaign is doing well.
Your email campaign ROI can be determined by comparing the profits generated to the expenses incurred while developing the campaign. This is achieved by following the formula below:
To get your ROI, first subtract the cost of crafting your campaign, such as your software subscriptions, design costs, salaries, etc., from the profits of said campaign. For example, if you earned $5,000 in Campaign A and it cost you $1,000 to create, then the first part of the formula would be $5,000 – $1,000 = $4,000.
Next, divide this result by the cost of the campaign, which would be $4,000 / $1,000 = 4. Lastly, multiply this by 100 to get the ROI percentage, which would then be $4 x 100 = 400%. This means for every $1 spent, you earned $4.
ROI, as mentioned above, is not just this number. You also have to analyze other metrics such as your open rates, click-through rates, and conversion rates. Focus on all of these and you are guaranteed to make better decisions to optimize your campaigns.
Improving Your ROI
- Segmenting and Personalizing Emails
Effective targeting hinges on your understanding of your audience. Familiarize yourself with your audience preferences and behavior, such as purchase history, add-to-carts, and email openings, and customer demographics, and then segment them into groups of the same factors.
After segmentation, the next thing to do is to personalize the emails according to these factors. Personalized emails drive higher engagement rates, and as this goes up, so does your ROI.
- Crafting Compelling Email Content
Your content is your campaign’s lifeblood. Your email layout and other elements won’t matter much if your content has no value in it. To resonate with your readers and capture their attention, you have to provide value that would compel them to act.
This should not end with the first email in your campaign. Your messaging should be consistent in the value it provides. Keep your readers hooked, keep them looking forward to your next emails, and always guide them to follow your calls to action. Remember to make it as clear as you can as your CTA is critical in converting readers into purchasing customers.
- Designing Aesthetics of Emails
Partner your content with the appropriate designs. Be strategic about this! Your elements should be optimized for viewing on all types of devices. You can utilize interactive elements such as animated images, embedded videos, and even surveys answerable within the email itself.
- Utilizing Email Marketing Tools and Platforms
Email marketing platforms such as SendPad have become game changers in this realm. With features such as automations, app integrations, beginner-friendly UIs, and in-depth reports of data, these platforms give the ability to streamline your campaigns to its maximum effectiveness.
- Advanced Analytics and Testing
With the in-depth reports mentioned above, you will be able to make better informed decisions on where to steer your campaign next. These reports should let you gauge the success of your campaign and provide better insights on your audience and their behavior. Remember to test your email campaigns as well through split-testing and experimenting with the different elements of your email.
- Integrating with Other Marketing Channels
Let your email marketing campaign thrive by combining it with everything else in your full marketing strategy: with social media, SEO, and other digital marketing channels. Keep a consistent brand identity within all branches of your marketing, as well as a consistent messaging, so you can have a unique presence online. Keep it cohesive!
- Legal Compliance and Ethical Considerations
Be familiar and be compliant with existing laws such as GDPR and the CAN-SPAM act and ethical considerations involved in marketing, not just email marketing but digital marketing as a whole. Steering away from spammy marketing keeps you trustworthy in the eyes of your audience. Commit to ethical practices and protect your brand image and foster your relationship with your customers for long-term.
Leveraging SendPad.com’s Features for Enhanced ROI
If you’re looking for an email marketing platform that can help you easily improve your ROI and other stats, SendPad might be the one for you. Packed with robust features ranging from the most basic tools to advanced analytics tools, SendPad is a most instrumental tool in achieving your ROI goals and polishing your marketing strategies.
Keep in mind that your email campaign’s ROI is a continuous process of optimizing and adapting. Apply the guide above as you go through your journey to your maximum ROI potential this 2024.