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What is the best way to measure ROI for email marketing?

You’ve undoubtedly heard that email marketing offers one of the most significant returns on investment (ROI) of any marketing strategy. Marketers gain more from emails than almost any other initiative, including social media, on a dollar-for-dollar basis. It’s one of the most profitable marketing strategies available and one that you can’t afford to overlook as part of your overall marketing plan if you want to get the most out of all of your marketing channels (and who doesn’t?).

Successful email marketing strategies need a significant financial commitment. And when you invest a lot of time and money into anything, it’s critical to know exactly what you’re receiving in return. We’ll go over the fundamentals of email marketing ROI, as well as how to efficiently quantify it, so you always know what’s working for your business.

Setting Goals to Measure for ROI

You’ll need two numbers to calculate your email marketing ROI: how much you spent and what you made. On the other hand, the latter is a little more challenging to figure out. Email profits don’t always come in the form of sales, and you’ll want to consider several variables when calculating how much money you made.

So, what exactly are those figures? Here’s what you’ll want to track to see whether your email marketing approach is working:

Sales produced through email:

To figure out how much money you made from your emails, divide the total amount of money you driven by the number of emails you sent to your email list. This will assist you in determining how much profit you made from each email. Keep track of how many individuals signed up for your email list as a result of receiving it. Tracking money generated straight from email marketing will be significantly simpler if you automate your email marketing. But we’ll get to it later.

Conversion rate:

Whatever your call to action is, whether it’s to download a whitepaper, book a call with your sales team, or schedule a demo, you need to monitor it so you can see how frequently you’re successful — and how much it costs you. The more conversions you receive, the more money you make; thus this is one of the most crucial variables to keep track of when calculating your ROI. Divide the total number of conversions by the number of emails you sent out to arrive at a figure.


The click-through rate, or CTR, is the number of individuals that clicked on a specific link. Divide the number of unique clicks by the total number of emails sent out minus the number of bounces to obtain that amount. The greater the CTR, the more bang for your money your CTA will provide.


The higher your profit margins, the better your emails encourage engagement. Your engagement rate is broken down into two distinct KPIs: open and click-through rates. Both of these indicators indicate how successfully you’re interacting and what is costing you more than it’s worth.

Lead acceleration:

Lead acceleration refers to how quickly you move prospects through your email marketing funnel. It’s more about comparisons than formula when it comes to calculating this measure. Your outreach is succeeding if your lead conversions have increased due to your emails.

Overall revenue:

Examine your email ROI in relation to your total revenue. This will help you to understand how it fits in with the rest of your marketing and sales strategies. If it’s outperforming everything else, it’s probably worth allocating more resources to your emails and less to the things that aren’t carrying as much weight.

Website traffic:

The more visitors to your website, the better. Examine the effect of your emails on web traffic to determine their ROI in terms of brand recognition and engagement.

Now let’s take a look at what is email marketing ROI and how to calculate it,

What is email marketing ROI, and How to Calculate it?

Email marketing is one of the most popular channels of marketing. And why not? Almost everyone has one or multiple email addresses. Thus, as a business owner, you must be tempted to do email marketing for your products or services. That is precisely why you need to know the ROI of email marketing.



Return on investment, or ROI, is a critical indicator for determining the effectiveness of your marketing initiatives. Email marketing outperforms other digital outreach approaches in terms of ROI, with an average of $38 gained for every $1 invested, resulting in a staggering 3,800 percent ROI. When it comes to making every dollar you spend actually matter, it’s evident that email marketing is worth your attention.

The method for calculating your own email marketing ROI is as follows:

Net Gain (profits derived from email marketing – email marketing costs) / Email Marketing Costs

It’s important to remember that averages aren’t always accurate. You won’t receive 38 times your money back if you spend $5,000 on email marketing. However, it does imply that you’ll be able to transform $5,000 into a lot more profit than if you spent it on PPC advertisements.

Well, this is how you can calculate the return on investment of your email marketing campaign.