Email marketing is a crucial part of any business, but exactly how much does it cost? That depends on a number of factors, such as how you measure cost. There are four ways you can measure the cost of email marketing.
1. Cost Per Acquisition
This is essentially how much you have to spend to get a new customer. You’ll want to track the amount of money you’re spending on paid ads, email campaigns, and lead magnets to acquire new customers. This is also known as the marketing budget.
You’ll have to make this decision based on how effective your previous campaigns were. If you have a history of successfully getting people to click on paid ads or open web banners, you can increase your budget for similar campaigns.
2. Cost Per Action
What do you get for the person who clicks the link in your email? If you have a Sales funnel, you can track the progress of people who land on your site from an email campaign. This is known as the conversion rate.
The cost per action method of measuring email marketing costs assumes that you’ll have to spend money to make money. The more you spend on ads, the more you’ll make. That’s the thinking behind the “growth mindset” — it takes money to make money.
You can use a tool like Google Analytics to track the cost per action of each link in your email. If a customer clicks on a product link and makes a purchase, you’ll want to track that conversion and how much you spent on that particular campaign.
3. Cost Per Click (CPC)
This is how much you have to pay for a click. If you run ads on a search engine, you’ll want to track the cost per click. The higher the cost per click, the less efficient the ad is. You’ll want to consider the quality of the traffic too.
You can measure the cost per click from paid ads on search engines like Google or Yahoo! Search. You’ll have to sign up for a free Google Analytics account to be able to track this accurately. If you want to track the cost of your email marketing campaign, you’ll have to set up web analytics software like Google Analytics.
4. Cost Per Install (CPI)
This is how much you have to pay for a person to install your app. When you have an app or website for your business, you’ll want to track how much you’re spending on advertisements, email marketing, and other marketing efforts to get people to try out your product or service and then become paying customers.
You can measure the cost per install from your Google Play or Apple App Store page. You’ll have to sign up to be able to track this data. The more you spend on advertising and lead magnets, the more people will install your app.
How Much Does Email Marketing Cost?
To calculate the cost of your email marketing campaign, you have to decide what metrics you’ll use to measure its success. Once you have those metrics, you can apply them to any past marketing efforts to determine how much you’ve spent and how much you’ve earned. That information will then allow you to determine how much you need to spend on future email marketing efforts.
Knowing how much email marketing costs is crucial for any business. Just keeping up with the ever-changing technological advances is difficult enough. With email marketing itself getting more complex each year, being able to monitor and track your costs is important.