Campaign Monitor estimates that average email campaigns return a whopping $38 for every $1 spent on marketing. This is one of the biggest reasons to launch a newsletter if you don’t already have one.
It takes a number of values such as your subscriber list, your open rate, and your typical conversion rate, then compiles it all together into stats with a final ROI.
Note you can measure email success in more than just ROI. It’s good to engage subscribers by linking to recent posts, cool new tools, or gathering feedback through polling.
But, larger lists can get pricey, so it’s good to monetize your newsletter at some point. This calculator can help you plan out the process with just a few points of data.
Here’s how it works:
- Enter your total subscriber list volume or the number of people who receive your email.
- Then, enter the campaign cost or monthly fees from your ESP.
- Next, you’ll need your open rate and clickthrough rate, both provided by your ESP.
- And lastly, your conversion rate, along with the average revenue per conversion.
You can set up automatic conversion tracking with Google Analytics that supports average revenue per conversion, too.
If you don’t know some of these numbers just use your best guess. Marketing is often about data but people behave sporadically, so you can never guarantee a certain ROI for every campaign.
Once you enter all this data, the calculator auto-updates with stats in the sidebar. These stats tell you the total number of conversions you can expect, how much this would cost, and how much net profit you would earn, along with the cost per conversion.
This calculator is great for estimated ROIs based on a certain number of conversions. If you know how many you need to break even it makes email marketing a lot less nerve-wracking.
Whether you’re new to email marketing or just looking to estimate a higher ROI this calculator can help sort out those numbers. It’s also fully mobile responsive and should remain free for life!