What Is A Good Ecommerce Email Marketing ROI And How To Improve
If you ever googled email marketing ROI, then surely you have seen the shocking stat that you can gain $36 for every $1 spent or even more. But like everything else in the business that’s easier said than done. Ecommerce email marketing ROI is a complicated yet extremely important metric that can alter the way you run your business.
Maybe you heard that email marketing is beneficial, so you started spending thousands on email campaigns. That could be a great business move or a terrible one depending on the ROI. In this article, we will shed light on how to calculate and increase your eCommerce email marketing ROI.
Table of Contents
- What is ecommerce email marketing ROI?
- The importance of calculating email marketing ROI
- How to calculate email marketing campaigns’ ROI?
- The eCommerce industry's average email marketing ROI
- 13 Tips to improve your eCommerce business’ email marketing ROI
- How can marketing operating systems help you increase your email marketing ROI
- Can Marketing Operating Systems Really Help you?
What is Ecommerce Email Marketing ROI?
Marketing ROI (return on investment) as apparent from its name; it's the number you get when measuring the return of any money you spend. To be more precise, ROI is a metric used by businesses to measure the effectiveness of any campaign or activity your marketing team is doing.
With that in mind, eCommerce email marketing ROI is basically a simple formula that helps you learn how much money you gain from each email marketing campaign you conduct. Before we talk numbers, let’s take a look at why eCommerce email marketing ROI even matters.
The Importance of Calculating Email Marketing ROI
No matter what age group you are in or what your occupation is, you definitely check your email at least a couple of times a week. This indicates that your customers and potential customers will certainly receive and see your email. However, in marketing that’s not enough, therefore it's vital that you calculate each email marketing campaign's ROI to know:
- How many customers read the emails
- The number of customers that respond to the CTA (whether it’s pushing them to visit your website, subscribe to a newsletter, make a purchase,..etc.)
- Which segment of your consumers tend to read or interact with your emails
- What are the best times to send out your emails (in terms of hours, days, and even months)
- How many clicks turn into leads and eventually sales
All of this will help you improve your campaigns and eventually learn how to create the best email marketing campaigns with the highest ROI. Keeping in mind that if this is your end goal, you have to constantly calculate your ecommerce email marketing ROI and compare it to other campaigns conducted by you and your competitors.
Now that we established the importance of calculating each email marketing campaign’s ROI, it’s time to learn how to calculate it!
How to Calculate Email Marketing Campaigns ROI?
To calculate your email marketing campaign’s ROI, you have to:
- Calculate the total amount of money you spent on the campaign
- Add up the total amount you gained from the campaign
- Then simply subtract the money gained from the money spent
- Lastly, take that number and divide it by the total amount spent
For example, if you finalized a campaign and you started adding up the number to realize that you spent $250 and you earned $2000. Then the ROI of this campaign will be 7%. In other words, that means for every $1 you spent you gained $7!
Learn how to 2x your conversion in 6 Promotional Emails To Multiply Your E-commerce Conversion
The Average Email Marketing ROI For Ecommerce
As previously mentioned, the average ROI of email marketing campaigns is $36 on every $1 spent. But that’s a general number, the ecommerce industry has an ever higher ROI! On average, for every $1 you spend in your email marketing campaign, you can make $45! In fact, ecommerce, along with retail and consumer goods, have the highest email marketing ROI.
If you are not achieving those numbers, that’s nothing to worry about. Each market may differ a little but let’s take a look at some practices that can help you increase your email marketing ROI.
13 Tips To Improve Your Ecommerce Email Marketing ROI
There are numerous factors that contribute to the success or failure of each email marketing campaign. However, if you apply some of the following tips and tricks, you will see a significant improvement in your ROI.
- Don’t be afraid to test how well your emails are. Using A/B testing you can learn what your consumers prefer and engage with more.
- Use spam testing tools to ensure that your emails don’t end up in the junk folder.
- Personalize your email for each segment or take it a step further and personalize it for every individual consumer. For instance, you can add the customer’s name to the subject or use tools to send personalized product recommendations.
- Segment based on factors that affect your sales not generic ones; as an ecommerce business, you can segment based on shopping behavior.
- Optimize your emails for all devices such as mobile, laptops, and tablets.
- Never skip the call to action, and always ensure that it’s relevant to the content of the email.
- Send out frequent emails (according to Litmus you should send from 9 to 16 emails each month.)
- Use tools to automate your email marketing efforts and engage customers in every stage of the funnel.
- Always assume that the customer will take all the actions you want them to do and be ready for it. For example, if you send an offer email on certain items, your inventory must be packed with them, so you don’t lose that conversion opportunity because you are out of stock.
- Send out a welcome email that introduces your eCommerce business, your top sellers, and what the audience should expect from your business.
- Use your email campaigns to provide value for your customers. For instance, you can start a referral program or a loyalty program that offers deals and discounts.
- Cart abandonment emails are a crucial part of any eCommerce business. As it engages with consumers at a point when they are hesitant about making a purchase, so with the right email you can easily persuade them.
- Don’t sleep on the post-purchase emails like the order confirmation and order tracking. This may not seem important, but with those emails you will begin to create a strong bond with your consumers and build a loyal customer base.
That may look like a lot of effort, time, and money, but thanks to technological advancements, marketing operating systems, and AI tools, email marketing has never been easier.
How can Marketing Operating Systems Help You Increase Your Email Marketing ROI?
There’s no need anymore to do anything manually. Using smart AI tools doesn’t only save you time and money, it also offers better results. With that in mind, you can use marketing operating systems like ConvertedIn to increase your ecommerce email marketing ROI.
Using ConvertedIn will help you with:
- Automating segmentation and filtering your audience
- Sending out personalized emails
- Creating workflows to send automated emails whenever a customer takes a certain act (for example, an offer is sent for customers who abandon their carts)
- Aligning emails with SMS for a fully-integrated campaign
All of this means that with smart tools like ConvertedIn, you can easily target the right customers and send them the right emails. As a result, your ecommerce business email marketing ROI will skyrocket, and your consumers will be happier than ever!
Can Marketing Operating Systems Really Help you?
If you are wondering if all this is worth it, let’s look at some numbers that will shock you.
- Using email segmentation can result in a 760% increase in revenues.
- Triggered emails have a 152% higher click-through rate than generic emails.
- Around 90% of leading companies’ CMOs are already using (or planning on using) marketing automation systems.
- 63% of companies that use marketing automation outperform their competitors.
- By the end of this year, 80% of advertisements will be automated.
After reading all this, are you excited to increase your eCommerce business’ email marketing ROI?? Request a demo now, and we will help you out!