Fundamental to your business is quantifying the effectiveness of email marketing and its (ROI) return on investment for the targeted clients of india and the rest of the country. Every business has their methods to measure email campaigns. Having worked with many different companies and having seen different approaches with different outcomes, we’d like to describe the most effective methods. It’s simple to assign an exact amount for each email based on features you can quantify return on investment for any email marketing campaign.
Basics of Email marketing ROI in the World Market
Start from the basics and find the key components of the conversion funnel with related metrics at each stage of the campaign.
Your marketing is dead if your email campaign doesn’t reach in the right inbox. Deliverability should be at the top of your email funnel. If you are doing e-commerce email campaigns then those should achieve 99% deliverability and less than 1% of bounces. If your campaign has high number of bounces then may be, it is an old list or it is a problem with spam filters.
Using conversion metrics you can measure how many purchases are made after users click on your email content. Conversion rate is measured by the number of purchases divided by the number of email clicks. The average conversion rate is between1% to 4%.
With proper attribution, you can track and measure not only conversions and the actual sales happened. To measure the purchase value you can multiply the number of conversions by the average order value and you will to get an approximate value.
Though your email lands in an inbox doesn’t mean it will make any sales if it is not opened. The open rate is the key metrics of subscriber engagement. In e-commerce open rates should be range between 10% and 25% and average is 17.35%. There are several factors that can affect open rates that include the content, subject line, email sent timing, email frequency and the user does not see the content until he or she opens it, but if the content is valuable and engaging, the user will be like to open emails in the future,that will be counted in your email marketing ROI.
Get your customers into email funnel, if customers open your email make him click on the link and land on your website for purchasing. Your email content is the driving force for having good click through rates. Customers click on the call to actions featured in the email to consider the purchase. Click through rate (CTR) is clicks divided by the number of emails delivered. Click-to-open rate is measured by clicks divided by the number of emails opened. For e-commerce the average open-to-click rate is around 15–17%.