Nowadays, marketing efforts have diversified vastly, but email marketing still offers the highest return on investment, and can be just the right tool to help you boost your conversion rate and drive more sales.
Still, how you deploy your email marketing strategy will largely determine its ROI and the opt-ins’ response to your efforts. As 72% of individuals prefer to be targeted with personalized offers, it’s only fitting if you cater to those needs and do thorough research on the wants and needs of your prospects. The better you understand your prospects, the higher the success chance of your email marketing strategy.
But before we discuss the best email marketing practices, let’s discuss the average ROI rates you can expect from this marketing channel.
The Average ROI of Email Marketing
For each dollar you allocate toward email marketing, you can expect to earn $36. But, the theory is never the same in practice. The copy, the CTA included in the email, and the email’s overall design are all factors crucial to your campaign’s performance. If you ignore them, you can’t expect to earn on your investment as other businesses do.
While the average ROI from email marketing is stunning as is, you should aim to go beyond that threshold if you want to conquer the industry.
Setting Your Email Marketing Up For Success
The best place to build your email list is your website or by using email finder tool. On your website, you can use the help of pop-ups to incentivize visitors to provide you with their email addresses. You can do this successfully by following the best email pop up practices such as gamification, timed deployment, A/B testing, and the use of smart CTAs.
Once you build your email list, all you need is an email service provider to help you go live with your promotions and target the right prospects with irresistible offers.
How Email Marketing Helps Your Business
Now that you know how to gather prospects’ data on-site, let’s explore how email marketing generates a return on investment as soon as your campaign is launched.
Businesses with robust marketing strategies focusing on social media and online presence might neglect email marketing, but that’s a common mistake marketers make. For instance, it’s easy to get lost in a numbers game while running a business. Keeping an eye on your LinkedIn network, Instagram followers, and Facebook group members might be beneficial, but you have to ask yourself how can you bring more value to your loyal and prospective customers.
Through email marketing, you remind customers that you do not view them as percentages, followers, or simply profit generators, but rather as individuals for whom you want to provide high-quality products and services.
If prospects supply you with their email, they are already interested in your products and services. You can skip technicalities and go straight for personalized offers, so they are up to date regarding your latest promotions, free shipping deals, and inventory updates. A successful email marketing campaign will always remind prospects and loyal customers that your products and services are of significant value and that they should not hesitate to fill their online shopping carts or make the trip to visit your brick-and-mortar store.
The more your marketing efforts are customer-centric, the higher ROI you will see from them.
Calculating ROI
When launching a marketing campaign, it’s vital to follow whether it is generating the results you want. Pouring a lot of funds into dead-end marketing campaigns will impact your business budget and impede your path toward success.
To calculate your email marketing ROI, you can use this formula: (Return – spent)/spent = ROI. Or, to put things into perspective, if you pay your email service provided $2,400 annually, and a marketer tasked with running the entire email marketing operation around $7,600, the total cost of your camping is $10,080. Now, let’s say you generate $30,000 in revenue from your email marketing campaign; your ROI is: 197.6%, or ($30,000 – $10,080)/$10,080 = 197.6%
Final Thoughts
Marketers still believe that email is still king, and businesses that exclude this marketing channel are seriously missing out on great opportunities. Remember that the main keyword in email campaign performance is personalization. Give your potential and current customers what they crave in terms of products and services, and keep them in the loop with the help of well-crafted emails.
If you launch an email marketing campaign, don’t forget to keep track of its ROI to ensure your efforts are not putting your business into dire financial straits.
