Email Marketing continues to be an essential medium for direct and cost-effective communication between businesses and consumers. More than 290 billion emails are sent daily and are forecasted to reach 347 billion by the end of 2023. Therefore, it is critical to understand how to best attract and maintain your consumers’ attention. If you want to better understand how to scale email marketing to receive the best Return On Investment (‘ROI’), keep reading…
What is Email Marketing ROI?
Email Marketing may be one of the oldest mediums of digital communication for reaching your potential customers. Despite this, it still reigns when it comes to usage among all age demographics. Every marketer needs to be able to calculate ROI to understand how to produce a healthy return on email marketing costs.
ROI is a measure used to evaluate the profitability and efficiency of your businesses investment in email marketing. Accordingly, the basic formula for calculating your email marketing ROI (expressed as a percentage) is:
ROI = (Gain-Spend)/Spend
However, it is important to not dwell on how this number is expressed or measured. The foremost focus Is on which strategies are likely to make email one of your top revenue-generating marketing channels.
Set Email Marketing Goals
Your business can use email marketing to achieve a plethora of business goals. These include:
- Increased customer loyalty
- Maintain customer engagement
- Boost brand awareness
- Drive sales
Subsequently, once you know the goal of your email marketing efforts, the next step is to identify the metrics to track.
Metrics to Measure
Accordingly, to scale your email marketing you will need to identify metrics to help determine the effectiveness and value of your email marketing efforts. Here are some metrics that you may want to focus on:
Tracking the percentage of your email recipients who opened your email can give you an insight into how engaged they are. Email marketing won’t do a thing unless your email recipients are actually opening and reading them. Undoubtedly, tracking open rates can identify how effective different subject lines are and which campaigns are performing best.
This metric is the percentage of your email recipients who clicked on the links in your email. Accordingly, to calculate this number divide the number of clicks by the number of emails sent out minus the number of bounces.
This is the percentage of your email recipients who completed your desired action (e.g. schedule a demo, call your team, purchase your product). To calculate this divide the total conversions by the number of emails delivered, multiplied by 100. Conversion rates can help determine whether or not your investments in email campaigns are paying off.
You can pinpoint the success of your emails by analysing the percentage of your total website traffic derived from your email marketing campaigns. Therefore, by identifying the email campaigns that are not performing well in attracting visitors, you can optimise them.
Your bounce rate measures how many email recipients did not receive your email. A high number of bounces may mean your email list has mistakes in the addresses, or there are old addresses or non-existent addresses. To calculate the percentage of bounces, divide the number of bounces by the number of delivered emails, multiplied by 100.
This metric will assist you in determining how much sales profit you earned from each individual email. To calculate this, divide the total revenue gained from your emails by the total number of emails on your email list that you sent.
Moreover, it is valuable to perform consistent email reporting to track your monthly performance. This permits you to compare progressive performance and whether your efforts are impactful.
Strategies to Maximise ROI
Invest in Email Marketing Automation
Email marketing automation is a method of using automated workflows to send the right message to the right people at the right time. As opposed to once-off campaigns that are created and sent to a list of customers in one go. In contrast, automatic email campaigns are set up once and then automatically sent to a particular individual when that person meets a certain trigger.
For instance, it would be a waste of your time to manually construct and send an email campaign to every person that signs up to your email list. Instead, email automation can send a welcome email whenever a new person joins your sign-ups.
There is a multitude of free and paid email marketing automation software available that can remove the unnecessary burden of repetitive tasks from your plate. Undoubtedly, choosing software will depend on your budget and the tasks you wish to perform.
Use A/B Testing To Optimise Success
A/B Testing is a tool that enables you to segment your audience, test out different versions of a campaign, measure results and pivot your strategy accordingly to maximise engagement. Essentially, you will send one variation of your campaign to a subset of your subscribers and a different variation to another subset. The aim of this testing is to determine which variation of your campaigns will garner the best results.
Personalise Your Emails
The value and ROI of your email strategy are determined by the most critical component of your campaign – your customers. Clearly, customers are bombarded with an overabundance of information, therefore personalising your emails to only send what is relevant for your customers can allow you to cut through the noise.
One way to personalise your email marketing is by segmenting your email list. Clearly, not everyone is keen on getting the same message from your business. Therefore, to maximise your email marketing for the best ROI, you can segment your customers and prospective customers using demographic data. This can include the customer’s age, industry, job title, location, gender, interests. Different needs and preferences drive every customer. Therefore, personalised emails can help you send out more relevant messages which will improve your open and click rates.
Strategically Time Your Campaigns
To scale your email marketing for the best ROI, you should send out your emails at times when most people check their inboxes. Different groups of people with different habits comprise every email list. Evidently, this means that your optimal time may be different to other businesses. Fortunately, email marketing automation software can analyse your previous open rates and determine your optimal time.
Optimise emails for Mobiles
Today, 66% of all marketing emails are opened on a mobile device. Hence, if your emails are not mobile-friendly you may be missing opportunities to generate revenue and engage more potential customers. Here are a few tips to make your emails more mobile-friendly:
- Make CTAs obvious: mobile phones vary in size, therefore on a smaller screeen your CTA may be small and less obvious. Put your CTA close to the top of your email and make it big, bold and easy to click. Therefore, preview your emails on a mobile to ensure they are optimised.
- Keep it brief: produce content that is easy and short to consume. Most recipients who open your emails on a mobile will be on-the-go readers. You want to get to the point quickly. Make it easily consumable, by utilising headers, bullet points and short paragraphs where possible.
- Watch your subject line length: Subject lines are the first thing recipients will see and they determine whether the recipient will open the email. Most mobile devices only show approximately 25-30 characters of an email’s subject line. Therefore, put your main message at the beginning of the subject line to ensure it appears on all mobile devices and captures your audiences attention.
Email marketing has proven to be one of the most lucrative marketing practices out there. It consistently delivers an unmatched return on investment for businesses of all sizes every year.
Want assistance to scale your email marketing for the best ROI? Here at BUSINESSNAV, our business advisors can provide high-quality EDM marketing services for SME’s and large enterprises alike. Contact us via the form below to get in touch with one of our advisors today: