Maximize Your Email Marketing ROI in 2023: Tips and Statistics to Improve Campaign Performance
Marketing is a powerful tool for businesses to with their audience and drive conversions. However, in order to truly measure success of your email campaigns, you to understand the concept of Return on Investment (ROI).
In this article, we delve into the importance email marketing ROI, its impact on your business, and how you can calculate improve it. Whether you’re a seasoned marketer or just starting out this article will provide valuable and strategies to help you maximize the ROI of your email marketing efforts.
Understanding Email Marketing ROI
ROI is the process which provides marketers with critical insights on overall performance and profit gained from their marketing strategies. If the performance of your campaign is not good, it can mean limitation in strategising and planning, lack of competitor analysis and the need for much brainstorming from your marketeers. In simple words, email marketing return on investment is the (gain-spent)/spent (denoted in percentage)
ROI = (gain – spent)/spent
How to calculate ROI in email marketing ?
The first step in calculating your email ROI is by calculating the spend. It can be a complicated process because it does not end at just figuring how much money you spend on your ESP. You should also include how much time you or your teammates spend on email marketing. You should convert it into hourly rates and calculate an estimate. Your total expenditure, therefore, would be ESP and its costs + Bandwidth of your team.
In the second step, you need to calculate how much money your email campaigns bring in. This is comparatively much easier. If the ESP you are using has Google Analytics integrated, you can easily track each sale made from your emails from specific campaigns or in general over a certain period. You must calculate the value of a lead by tracing each conversion made through your email campaign on Google Analytics. You must also include website traffic. After that multiply the value of a lead with the number of conversions. This will give you the total amount of revenue generated from an email campaign.
Gain = Value of a Lead X Number of Conversions
Let us look at an example.
Let us assume that you pay $100/month for your ESP. In a year, it sums up to $1,200. Now you have a marketer working directly on email campaigns for 2 hours for 5 days a week and at a rate of $20/hour. That amounts to $10,800 as your email marketing spending.
Now, let us assume that the cost of a lead is $100 and that email campaigns bring you 400 leads a year. So, your revenue from email is $40,000.
Therefore, your return on marketing investment calculation comes down to –
$(40,000-10,800) / $10,800 = 270.37 %
What is an average ROI of email marketing?
It is a universal truth that emails offer the highest returns for the amount of money invested. It is also the most measurable form of returns for marketers. The return on emails sent might vary depending on the industry and email type. However, keeping up to date with the latest trends and strategies, referring to and understanding email marketing ROI statistics and finally implementing them would ensure a high and standard return.
A good email ROI rate can average between 3600% to 4200%. It means that for every $1 invested you will receive a return of an average of $36 to $42.
How to increase email marketing success rate?
Email marketers, particularly those utilizing a robust email marketing strategy with tools like Mailercloud, have tried and tested many methods and strategies over the years to achieve favourable success rates. Some have achieved significant successes, while others have had less impressive results. However, almost all successful marketers have kept the following techniques at the core of their strategies, continually aiming for a higher ROI. By leveraging platforms like Mailercloud, they’ve been able to iterate, improve, and optimize their email marketing for the best possible returns.
Email marketing statistics demonstrate a compelling fact: the most crucial factor behind the success of email campaigns is the relationship with your audience. As the number of global email users continues to grow, so does the importance of fostering these relationships. The shortcut to improve this connection? Personalisation.
One of the easiest tricks by which you can bring your customers to engage with your email newsletters is by referring to them with their first names. This simple act can make your communication feel more personal and relevant. Moreover, it’s not just about using first names; you can utilise various forms of your data for sending exclusive offers that target each individual uniquely.
To improve your email marketing strategy, start by segmenting your list as transparently as possible. Once you’ve identified your audience segments, use the highlighted characteristics of those segments to create a customer experience that feels one-on-one. This approach is at the heart of effective content marketing.
Personalised emails have been shown to generate six times more transaction rates than regular chain emails. This is an undeniable testament to the power of personalisation in email newsletters and more broadly, in content marketing.
However, remember that personalisation is not a one-size-fits-all solution. It requires careful consideration of your audience’s needs and preferences. As you continue to refine your strategy, consider the unique strengths of email as a marketing channel and how you can leverage these to create truly engaging experiences for your customers.
Boosting customer networks
To succeed in email marketing campaigns, you need to boost your customer networks. You can attach online forms to your preferred email marketing platform to send data, like phone numbers and emails instantly into your email list without having to type in a single detail. You can sue the time saved to work on plans how you would engage your customers. You can also utilise web forms to collect new subscribers with inserting forms and social sharing. You can add such forms on your blogs, social media sites, and other landing pages to bolster email sign-ups. It will help you to gain new subscribers from any consumer touch-point with your brand.
Using exclusive content
Creating and inserting subscription forms is indeed a crucial step in growing your email list. However, to encourage potential subscribers to fill out these forms, incentives are often required. One of the most effective ways to do this is by generating interest with useful and exclusive content.
Before they can consume your content, subscribers first need to check their email. Crafting an attractive subject line is key to tempting your customers to open your emails. Email open rates are a valuable metric that allows you to gauge the effectiveness of your subject lines. A high open rate indicates that your subject lines are capturing attention and prompting recipients to explore your content.
In addition to email content, consider offering valuable services to your subscribers. This could involve helping them search for new products and technologies or keeping them informed about industry trends. Such services not only add value to your emails but also reinforce that your content is worth subscribing to.
You can also use different platforms like blog posts, Google hangouts, articles, and infographics to communicate about these offers. These mediums provide multiple touchpoints for reaching out to your audience, thus increasing the likelihood of gaining more subscribers.
While providing exclusive content and offers is vital, it’s equally important to calculate your email marketing ROI. This will help you understand how much return you’re getting for every dollar invested in your email marketing efforts. Tools like Mailercloud can assist you in this calculation and provide essential insights into your campaign’s performance.
Finally, consider incorporating email automation into your strategy. With the ultimate list of email marketing tools at your disposal, you can automate the process of sending personalized emails based on user behavior, thus saving time and increasing efficiency. This strategy can help maintain a steady engagement with your audience while enhancing the overall customer experience.
B2B companies are realising the importance of mobile optimisation to enhance their email marketing status. This approach plays a crucial role in improving the Return on Investment (ROI). The key is to adapt your email marketing strategies to a one-column template, which provides a simple fix suitable for mobile devices.
It’s important to ensure that your acquisition forms are compatible with mobile devices. If potential customers using smartphones are unable to fill out your form, you risk losing them. Therefore, it’s essential to select an online form builder that has been optimised for use on tablets and cellphones.
Mobile optimisation is not only about accessibility but also about expanding your contact network with new customers. By providing a seamless mobile experience, you are likely to engage more subscribers. The content you deliver should be easily accessible on mobile phones without any trouble.
To calculate email marketing success, it’s vital to consistently track and measure your campaigns’ performance. The average email marketing ROI can serve as a valuable benchmark in this process. Remember, the more streamlined and accessible you make your email marketing for mobile users, the higher the chances of boosting your ROI.
Leveraging Tools and Testing to Increase Email Marketing ROI
With the support of various tools, you can measure the effectiveness of your marketing campaigns, including your email program, and bring forth significant improvements in ROI. Achieving top email marketing ROI requires constant optimization to stay ahead in the competition and meet up-to-date market challenges.
Your email subject lines are a critical component of your marketing emails and can significantly impact your open rates. Consider updating your email subject lines as a part of your optimization efforts to increase your email marketing effectiveness. Remember that enticing subject lines can captivate your audience’s attention and prompt them to read your content.
Besides updating content, you can also alter CTAs, navigate tests, and adjust other elements in your experimental procedures. However, it’s crucial not to make these changes on live sites. Instead, create a separate version of the page and conduct A/B tests or multivariate tests to optimize it.
These testing methods can provide valuable insights into what works best for your audience and help increase email marketing ROI. After monitoring the results and finalizing the changes that yield the best marketing outcomes, you can then make the optimized version live.
Remember, the goal is not just to increase traffic but also to improve conversion rates. By focusing on these aspects, you can ensure that your business stays competitive and continues to achieve a high ROI in email marketing.
Email Marketing Statistics: A 2022 Recap and 2023 Forecast
I would like to wrap up by highlighting the top statistics in 2023 from the email marketing industry.
- The average ROI for every $1 spent on email marketing was 42$. It is a whopping profit margin of more than 4000%, naturally making it very popular among 90 per cent of email marketers to distribute content organically.
- Small businesses, almost 81%, use email marketing to acquire customers, and 80% of them use it for retention.
- As far as open rates are concerned, welcome emails have seen an open rate of 82% and emails with personalised subject lines have seen open rates increase by 50%.
- Nearly half of all consumers have responded that they are eager to receive promotional emails from their favourite brands and, whenever these promotional emails consisted of interactive content or videos, click rates increased by 300%.
A broad idea about the numbers in the industry is bound to reassure you and your business of steady increments in ROI over the next few years. For those who are still doubtful, it is the perfect moment to dive into email marketing and start using it to expand your reach to new corners.