How to Use This Email Marketing ROI Calculator
This email marketing ROI calculator was made to help you understand the value of email marketing, and of course, to help you determine the ROI on past email marketing campaigns, or plan for future campaigns.
It also helps you determine what sales you need to reach, in order to achieve your email marketing financial goals.
Here’s What you Need to Input – Easy 1, 2, 3…
1 – Number of Email Messages
Enter the total number of subscribers in your email list, or segment into this email marketing ROI calculator – Those that you will send an email message to. You can adjust the number you enter, so that you can get an idea of the email volume you need to reach a specific goal. Don’t forget to subtract the number of bounced email messages, to get a more curate picture.
2 – Cost of Email Campaign
Add up and enter the complete expenditure you incurred (or expect) for this email campaign. You might want to read the post “How to Calculate Email Marketing ROI” which outlines some expenses you should consider – This post is a great way to garner a better understanding of this email marketing ROI calculator.
3 – Total Sales
Enter your total revenue resulting from the email campaign.
Understanding Your Results
Once you’ve entered the above three values, this tool will provide the results for you. Here’s what these results mean…
Cost Per Subscriber
This number will let you know how much you are spending on each email message (in the campaign). It’s a calculation of the total cost of the email campaign divided by the number of email messages.
This is your total sales. Your sales number, the one that you entered, is the result of the number of conversions you had for your top line sales.
This number is the result of your total revenue, minus the cost of your email campaing.
Revenue Per Email
This is a value displaying the average of how much money each email message earned. It’s a result of the total sales, divided by the number of email messages sent.
Sales Break Even
This is a number that let’s you know how much sales you need to at least recoup your expenses (with zero profit).
This value is what you should be focusing on. It is a percentage of the return on your investment (you should receive more money than you spend). The higher the percentage, the better.
If you would like an Excel spreadsheet to use as your email marketing roi calculator, you can download: Excel Email ROI Spreadsheet.
You can learn much more about email marketing ROI, by visiting our Small Business Email Marketing posts. As well as find out more about Email Marketing ROI.