Email Marketing Profitability & ROI

Look what happens when you measure return on investment (ROI)....

Effect Of Response Rate and Conversion on ROI
Emails delivered	10,000	10,000	10,000	10,000
Response rate	7.5%	10.0%	7.5%	10.0%
Responders	750	1000	750	1000
Conversion rate	2.0%	2.0%	3.0%	3.0%
Leads/Sales	15	20	22.5	30
Revenue	£1500	£2000	£2250	£3000
Profit	£1000	£1500	£1750	£2500
ROI	200%	300%	350%	500%
Note: Calculations are based on a total campaign cost of £500 and a lead/sale value of £100.

Improving just one factor (response rate or conversion rate) has a BIG effect on the bottom line.

In this example, increasing response rate by only 2.5% has improved ROI by 100%. And increasing conversion by 1% has improved ROI by 150%.

But look what happens when response rate AND conversion rate are improved...

...the campaign now has a ROI of 500% and makes 2.5 times more profit!

=> Open, click-through and conversion rates combine to drive the ROI and success of your campaigns...

...if recipients don't open your email, you can't get a click...if you don't get a click, you can't get a conversion...and if you don't convert the visitor, you can't generate any revenue!

Key point: Results are more than additive.

Email ROI Calculator

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