Email Marketing: How to Measure ROI in 6 Easy Steps

As an email marketer, you know that getting customers to open and click on your emails is the key to successfully executing your marketing strategy. But it can be difficult to determine what actions led to a particular result (i.e., an open and a click.)

You also know that using automated email marketing tools can help you gain a fuller picture of the effectiveness of your strategy and the results of your efforts. But it’s difficult to determine the overall effectiveness of automated tools when you are treating the data as a whole.

Step One: Identify the goal

The first step in measuring the ROI of your email marketing strategy is to clearly understand what you are trying to achieve. Are you looking to gain new customers? Grow your audience? Increase the average order values of your customers?

Once you know what you are trying to achieve, you can determine which metrics to use to assess your progress. Are you looking to gain new customers? Grow your audience? Increase the average order values of your customers?

To do this, you will need to look at the performance of emails sent over a specific period of time. Ideally, you will use a tool that allows you to isolate the impact of each individual email in relation to the previous and subsequent emails in your series. Doing this enables you to determine the effectiveness of each email in bringing about the desired results.

Step Two: Create key performance indicators (KPIs)

Once you have established the goal of your campaign, you can start to set key performance indicators (KPIs). These are measurable metrics that you can use to determine the success of your campaign. Examples of KPIs could be:

  • the number of new customers gained
  • the number of email messages opened
  • the amount of content viewed
  • the number of times a lead clicked on a link
  • the amount of content shared
  • and the like

You should also look to establish indicators that will allow you to track the lifetime value of each individual you have contacted – for example, the total amount spent by a consumer on merchandise or the total amount of revenue generated from a completed sale.

Step Three: Measure the results of your campaign

The next step is to measure the results of your campaign. The objective here is to determine the impact of your efforts and establish what worked and what did not work. To do this, you will need to track several metrics to establish a comparison. Some examples of the metrics you could use are:

  • the number of customers gained
  • the number of emails opened
  • the amount of content viewed
  • the number of leads clicked on
  • the amount of content shared
  • and the like

The first step is to compare these numbers to a baseline. You can then determine the success of your particular email campaign. If you are seeking to grow your audience, for example, you could compare the results of your campaign to the size of your initial audience.

Step Four: Refine your strategy

The fourth step in measuring the ROI of your email marketing strategy is to refine your strategy. When establishing your strategy, you should look to include specific tactics that you can use to achieve your goals. For example, did you choose to send marketing emails on social media? What content did you use to attract followers? What channels did you choose to use and how did you choose these channels?

The answers to these questions will allow you to determine what worked and what did not work in your strategy. You can then choose to either alter your approach or stick with your initial strategy and establish additional metrics to gauge its effectiveness.

Step Five: Identify strengths and weaknesses

The fifth step in measuring the ROI of your email marketing strategy is to identify its strengths and weaknesses. Just like any other marketing strategy, your email marketing strategy will have its strong and weak points. The important thing to do here is to examine the ways in which your strategy can be improved. For example, did you notice that many of your leads converted to customers simply because you used social media to attract their attention? Or did you find that the type of content you used attracted more attention than the amount of money you spent?

Examine the ways in which you can make your strategy stronger and consider what you need to do to make it more effective. Once you have established these points, you can move on to the last step.

Step Six: Identify opportunities and threats

The final step in measuring the ROI of your email marketing strategy is to identify the opportunities and threats. These are all the factors that could impact the success of your strategy. From a business perspective, opportunities could be related to increasing customer satisfaction, lowering operational costs, or gaining a better understanding of customer behavior. Threats could include competitors seeking to gain a foothold in the market or changes in consumer behavior that make existing customers less valuable to your business.

Threats should be examined with great detail and consideration for how to overcome them. Generating a detailed list of these points can help you determine how well you will do in the future and allow you to make the proper adjustments to ensure your continued success.

Thought leaders are defined as people who have enough influence that others listen to what they have to say. If you want to become a thought leader in your industry, you need to demonstrate that you are an expert in your industry. One way of doing this is through the use of data and analytics. Analytics allows you to gain a better understanding of your customers and allows you to identify key performance indicators.

To learn more, you can read our guide to becoming a thought leader in your industry. It contains information on the kinds of metrics you can use and the kind of thinking you need to adopt to become a thought leader in your industry.

Thought leadership is a significant advantage when competing for industry dominance. Having a team of authoritative experts at your disposal can provide valuable advice on how to tackle your competitors.

Measuring the ROI of your email marketing strategy can be quite challenging. With each passing day, your ability to track customer behavior becomes more difficult. This is because customers behave differently in real life than they do on your email marketing campaigns. They may click on an email link and purchase a product that they were already interested in, but that is quite different from how they would behave during the research phase of a customer engagement campaign. Furthermore, the fact that you have to compare metric to metric greatly increases the chances of error. The only way to ensure you get the results you want is by using a tool that can accurately establish a comparison.

By taking the time to carefully consider each step of the way, you can be rest assured that you have taken the right path to reach a correct conclusion. Once you have established the appropriate metrics, it is but a matter of applying scientific method to your analysis.

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