What is ROI?
Return on Investment (ROI) is a measure of profitability that evaluates business actions. It gives you insights on the return to your email marketing efforts. It is basically the amount of earning relative to the amount spent on the marketing, or how much comes back compared to how much was put in.
But simply knowing your ROI is not enough. The goal of any business is to increase profit and thus increase ROI. To do that, you need to calculate your ecommerce business’s ROI and, unfortunately, this simple equation won’t do.
Here is an effortless and engaging tool that measures your business’s ROI for you.
You’ll need to know:
- The type of calculation you want to solve: whether by time period or by email campaign.
- Your email volume (the number of emails that were actually sent)
- Your open, click and conversion rates
- The total costs (all the costs involved in your email marketing campaigns)
Importance of CRM and Email Marketing
A Customer Relationship Management (CRM) system enables businesses to manage all the customer’s data. The software can drastically improve the ROI of all your content, particularly email marketing. It organizes and centralizes customer details, accounts, leads and opportunities on a single platform. According to a 2014 Nucleus Research study, CRM gives an average ROI of $8.71 for every $1 dollar spent. CRM software ensures that your team to unite and develop stronger and more personalized customer relationships and centralize all the important information on a single platform.
Email marketing was ranked as the best channel in terms of ROI (68 percent), declared Econsultancy. According to another report released by the Direct Marketing Association, E-mail marketing yields an average of 4,300% return on investment for businesses. Meaning that email marketing generates $28.50 in sales for every dollar spent on email marketing.
Moreover, survey respondents in MarketingSherpa’s 2013 Email Marketing Benchmark Report reported that email marketing produced strong ROI. Marketers reported an average ROI of 119%. Business-to-business marketers reported the highest ROI at 127%. Marketers from organizations that sent fewer than 100,000 emails per month estimated an average 139% ROI, while marketers from organizations that sent more than 100,000 emails per month estimated a lower ROI of 94%.
Tips to Increase Your ROI
Here are 9 tips that are guaranteed to boost your ROI.
Email list segmentation is a proven way to dramatically improve email-campaign performance. Learn the best tips for how to segment your list and how Revamp CRM can simplify the segmentation process for you here.
Optimize for mobile.
More than half your prospects and customers are using mobile devices to read your emails. In fact, according to a research, 66% of emails are opened on a mobile device. Ensuring that your emails are optimized for mobile is an essential step for driving up your ROI. Since users check their emails more than they do anything else on their phones, here are a few things to consider when optimizing emails for mobile phones.
- Keep your text to a minimum. Subscribers usually skim an email’s content so rely on more headers to help them understand what your message is
- Use graphics that don’t contain small details
- Use readable fonts. Make your fonts size easy to read but not too big
- Use a one-column template if possible
Focus on deliverability.
Are you sure you’re getting your emails into your subscribers’ inboxes? The junk or spam filters of web-based email services may be catching them. The first step to getting your email opened is getting past the spam filters. Avoid “spammy” keywords such as “Clearance” and “Lowest price.” If your analytics show recipients think your email is spam it means they don’t remember your company. Make sure the “From” and “Subject” lines contain your company name.
Use triggered emails.
Abandoned shopping cart email programs and thank-you pages are two examples of triggered emails that can have a big impact on your email ROI. Our CRM software automates these simple yet effective emails for a stronger email marketing campaign and increased ROI.
These types of emails speak straight to the subscriber and guarantee higher returns. You can use factors such as purchase history to further customize emails.
Achieve high lead score.
Knowing the stage of lead in the sales funnel is very important as well as determining the priority of leads is also important. Our CRM software provides you all the important information on leads. You can use this lead data to understand and maximize ROI.
On average, total views for emails increased by 94% if the content contained at least one image.
Timing is Key.
The difference between one hour and the next can radically affect your marketing campaign and thus affect the returns. Make sure to spot trends in your insights and data to which time you get the most open-rates or click-rates and act accordingly.
Everyone makes mistakes. But mistakes in the business world can be fatal. Don’t let small details cost you subscribers and lower your ROI. Proofread.
ROI is one way to measure profitability. Our software strengthens your email marketing campaign and boosts your return on investment. Revamp CRM system displays and organizes all the critical information about your customers. Use this information to enhance your email marketing ROI, increase open and click rates as well as find higher yields to your marketing efforts. Sign up now for a 30-day free trial here.