Calculate Your Missing Email ROI
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Ask the CommunityWhat is email marketing ROI?
Email marketing ROI, or return on investment, is a key metric that assesses the effectiveness and profitability of email marketing campaigns. It involves analyzing the financial returns generated from email marketing efforts in comparison to the total investment made.
To calculate email marketing ROI, marketers often consider various factors, such as the total cost of running an email marketing campaign, including expenses related to tools, and hourly rates for marketers. The investment also encompasses the time spent on creating and managing email campaigns.
Ultimately, the return on investment for email is determined by the total revenue generated and influenced by email campaigns, considering the number of leads, conversions, and sales achieved. By analyzing email ROI, businesses can identify best practices and ways to optimize their email marketing for the highest profits.
What is Litmus’ ROI calculator calculating?
Litmus’ Email Marketing ROI Calculator helps you quantify how much you could potentially increase your conversions, profits, and results with the Litmus solution. It analyzes total revenue lost due to costly email campaign errors, total revenue missed by lackluster personalization tactics, and analyzes the total value of how much time marketers can save by implementing Litmus in their workflow. The result is a rough estimate of the total profit marketers could be leaving on the table across their email campaigns each year.
How does the Litmus ROI calculator calculate email ROI?
The Litmus Email Marketing ROI Calculator calculates how much email-driven revenue businesses could be losing on and the total people-hours cost savings that could be regained by efficiencies gained through the Litmus solution.
To calculate the increase in sales, conversions, profits, and total revenue companies across all industries could see from implementing Litmus’ advanced personalization solutions, we multiply your current email-driven revenue by 96% as that is the average increase in revenue current Litmus Personalize customers have reported across their email campaigns.
How is email-driven revenue calculated?
To calculate email-driven revenue, we look at two factors; total cost of email errors/inaccuracies and the potential increase in profits businesses could achieve with Litmus advanced email personalization solution.
What is email accuracy and how is it calculated?
To calculate email accuracy, we ask you for your email accuracy rate which is the percentage of emails sent where errors were found after the send vs those where no errors were detected. On average, Litmus customers report achieving a 97% or higher email accuracy rate, so we’ll calculate how much revenue could be gained by increasing your email accuracy to that level.
How do you define people-hours cost savings?
We calculate the total people hours savings by estimating the hourly rate of the email marketers on your team using sources like Glassdoor and the Email Geeks Salary Survey. Litmus customers have shared that they were able to cut their email workflow time in half with efficiencies gained from Litmus, so we calculate the people-hours savings accordingly.
What can I do with the value that the email ROI calculator gives me?
The Litmus Email Marketing ROI Calculator helps you get a baseline idea of the total profits and revenue your business could be leaving on the table when it comes to email ROI. While this estimate is not a guarantee, it is helpful to share with your marketing and revenue leadership teams when considering your investment in Litmus. Using this data point alongside our Litmus Email Buy-in Guide will help you build a business case for your investment in Litmus—and your investment in optimizing your email revenue.
What is considered good email ROI?
Good email marketing ROI will be dependent on numerous factors about your business including the total cost of running email marketing campaigns, expenses spent on tools and resources to run email marketing campaigns, and even which industry your business is in. On average, for every $1 marketers spend on email marketing, they receive $36 in return.
Why is measuring email ROI important?
By measuring email ROI you will know how much you will earn back for every dollar you spent on your email marketing. A positive email ROI indicates your business is earning more revenue than it is spending on the running cost of email marketing campaigns. This is a critical metric to help businesses continue to optimize their email marketing campaigns to continue improving their email ROI.
What factors could affect email marketing ROI?
The total number of emails sent in a campaign, industry in which a business operates, and the number of subscribers in the email list are factors that influence email marketing ROI. Marketers often utilize solutions like Google Analytics, analytics through their ESP, and third party insights like Litmus Email Analytics to gauge campaign performance.