ROI (return on investment) is the most important metric for Email Marketing. Base on the DMA economic-impact study, e-mail’s ROI far outshines other online marketing channels. Email marketing generated an ROI of $43.62 for every dollar spent on it in 2009.
Increasing the ROI of email marketing will definitely help to increase revenue. Here is a very basic equation for calculating the ROI:
ROI = [(Payback - Investment)/Investment)]*100
There are two basic ways to increase ROI: Increase Payback & Decrease Investment, Here are tips:
Increase Payback Tip 1: Call to action. The more actions customer take, the more possibility of purchase you will get from them. Use the Strong call to action buttons in your email body, will win more payback without cost extra $.
Increase Payback Tip 2: Incentive Program. We all like free stuffs, prizes, discounts, even luck draw… Design some incentive programs in email to encourage your subscribers to either register or purchase, give them a reason, they will do contribute to your revenue.
Increase Payback Tip 3: Offline campaign. According to Epsilon, 67% of subscribers say they’ve purchased products offline as a direct result of receiving an email from company. Align email marketing campaign to increase your offline sales numbers. But I have to say it’s hard to track.
Decrease Investment Tip 1: Keeps you customer list clean. You don’t want to pay for the email which can not be successfully delivered, right? Remove those emails which got soft-bounce and hard-bounce 5 times above from your list. It will save a lot.
Decrease Investment Tip 2: Get your email address white-listed. Contact ISP or through Email marketing company to get your email sending address or IP address white-listed, the more ISPs white-list your address, the more messages will be delivered to clients’ Inbox .
Decrease Investment Tip 3: Select cost-efficiency Email marketing platform. For some of Email Marketing tool, they charge base on the number of email subscribers, you need only to pay small amount to start your business. Seems AWeber only cost $19 per month when your list smaller then 500 subscribers.
Increase Payback & Decrease Investment, You will get higher Email Marketing ROI. Good Luck!