Email marketing is without a doubt one of the best methods for connecting with your subscribers and establishing communication. But how profitable is it for your company in reality?

Are you obtaining the results you anticipated, or do you consider a good amount of clicks an accomplishment? To gain a whole picture of your email performance, you must evaluate your email marketing ROI. Don’t get us wrong; clicks are tiny steps that can produce big effects.

But it’s not as simple as it sounds to determine email ROI. It varies based on your objectives, email marketing, and financial constraints.

We’ll offer four really successful techniques to increase your email ROI as well as industry benchmarks you can use as a guide in order to assist you.

How effective is email marketing?

Let’s talk about the most important issue first before continuing.

Average benchmarks for ROI email marketing are presented by several company studies. Among them are :

According to Litmus’ research, businesses in Europe and the UK have an average email ROI of 41:1, which is higher than that of American businesses, which is 36:1.

According to a DMA poll of UK marketers, the ROI for email marketing increased year over year, rising from 44:1 to 48:1 in 2021.

Businesses in the EU have a greater ROI than those in the US, but there are other factors at play besides geography that affect email marketing ROI. Before we go into additional elements,
Let’s first talk about how to compute email ROI. As its important to calculate ROI for the your email marketing data analysis.

Generate more qualified leads with cold outreach!

How can email campaign ROI be determined?

Typically, the following formula for calculating ROI is used to determine email marketing ROI :

ROI is equal to (total email income – total costs incurred) / total email costs.


If you invest $1000 and earn a revenue of $1100. Then your email marketing ROI is 10%.

(i.e.) [1100 – 1000/1000*100]. This translates to, you got $10 in every dollar you spend. People have claimed to generate up to $42 per dollar they spent in email outreach campaigns. 

Simple, right? Not exactly.
Customer engagement strategies are used to achieve several goals. Like, increased brand awareness, drive website traffic, lead generation & nurturing, and increase sales and revenue for your organization.

There is so much more at work, and it isn’t easy to assess the email performance tangibly. There are many factors you need to know to calculate email ROI accurately, and some of these are :

  • Revenue from email marketing.
  • Cost of email marketing tools.
  • Cost of in-house email marketing team.
  • Cost of outsourced support.
  • Cost of technical help to build your landing pages.

As per Litmus’s survey, 50% of marketers measure email ROI ‘poorly,’ ‘very poorly,’ or ‘not at all.’ Only 25% of companies said they adequately measure ROI from email efforts.

Even though it aids in the validation of marketers’ efforts, quantifying ROI remains difficult for many. However, in plain English, you may assess the effectiveness of your email marketing by looking at your expenditures and results.

What elements affect the return on investment (ROI) for emails marketing?

Following are some of the key elements influencing your email ROI. The email ROI report from Litmus is where we gathered all the information.

  • Business size

    The pandemic caused the email ROI for ROI companies with 100–499 to drop significantly from 40:1 in 2019 to 29:1 in 2020.

  • Industry-specific campaigns

    Due to the variety of its items and capacity to launch innovative campaigns to capitalize on seasonal trends, the e-commerce sector often has higher ROI than the software sectors; holiday offers result in more purchases. Additionally, these sectors have access to a wealth of client information that they may utilize to send extremely pertinent and targeted advertisements.

  • Size of email teams

    The size of your email marketing staff is another element affecting your email ROI. Email marketing at scale is less effective due to a smaller staff and scarce resources.

  • Email volume

    Deliverability, engagement rate, and bounces are all affected by the volume of emails you send in a given period of time. Your email ROI is impacted by these metrics in turn.

  • A/B Testing

    To gain data-backed insights and a higher investment return, testing is always an excellent alternative. Despite this, many businesses never A/B test their emails, which is why they have a ROI of 23:1, which is 50% lower than that of businesses who frequently do so.

How to improve your email marketing ROI?

Here are 4 practical suggestions to help you dramatically boost your email marketing ROI :

  • Automate the sending of
    Launching targeted email campaigns to reach the correct audience when they’re most active depends more and more on automation. You may build up triggered emails to be sent depending on user behavior, preferences, and past purchases by integrating your site and email analytics with email automation software.
    Additionally, statistics show that personalized emails sent automatically can boost your ROI :
    of customers are more inclined to make a purchase from a company that knows them, remembers them, and makes useful offers and suggestions. 2018 Pulse Check Report from Accenture
    Consumers claimed that
    only respond to personalized messaging. The SmarterHQ
    The growing use of update and triggered messages further emphasizes the growing use of automation to deliver current, pertinent content to clients without necessitating the creation of a new campaign or message by marketers.
  • Frequently purge your email list
    Sending emails to disinterested people in an attempt to convert them is a waste of time, money, and effort. Not to mention, it also affects your deliverability rate.
    Since quality always outweighs quantity, your email ROI will depend on how many people are active and engaged, not on how many emails you send to your entire email list.
    Therefore, be sure to purge inactive or unsubscribed individuals from your email list. You can put such users to a suppression list with the aid of your ESPs in order to stop sending emails to them.
  • Carefully examine your emails.
    Typos or missing alt text put your time, effort, and hard work at jeopardy. Your email ROI may suffer as a result. To prevent deliverability problems or a poor user experience, you must properly test your email. Here are a few of the tests you ought to carry out:
  • Spam checks
    Delivering your emails to the user’s inbox is a must for even considering getting them opened. What happens, though, if emails end up in spam folders?
    You should conduct a spam test to look for any spam-triggered issues like to prevent such unfair scenarios.
    the use of terms that cause spam, such as “JACKPOT,” “100% FREE,” “CLAIM NOW!”
    Low scores for IP and domain reputation.
    IP address that is blocked.
    You can use a variety of spam detector software to make sure that emails are clear of spam. Google Postmaster, Mail Genius, and Mail Tester are some of the most popular tools.
  • Preview emails
    You can preview your email before sending it with almost any email service provider (ESP). You shouldn’t disregard this since, even if you believe your writing is error-free, you never know when a mistake will pop out. Check your emails thoroughly and for errors in layout, style, formatting, etc.
    Furthermore, it is preferable to have a fallback version to prevent rendering problems by the user’s email provider. As a result, you can use static images as a fallback if, for instance, an email client does not allow a carousel in an email. Fallbacks make sure users can interact with and view your email without experiencing rendering problems.
  • Test A/B
    The use of email marketing is not a game of chance. Your subscribers have put their trust in you to send them pertinent emails that speak to them and are worthwhile investments of their time. To make a data-driven decision, you should conduct an a/b test even if you are unsure about your CTA, layout, or even color choice options.
    Simply generate two similar but slightly different emails, perhaps changing the CTA copy, and concurrently send them to two distinct segments. Use the email that performed best in the test for future email campaigns after running the test for a sufficient amount of time.
  • Create responsive emails
    Because 71.6% of consumers would trash emails that don’t look nice on mobile, you need to make sure that your emails are accessible and legible on mobile devices. Additionally, responsive email design increases engagement.
    By using flexible email designs, the clothing firm Weird Fish noticed a10% increase in the CTR to its website.

How does SendBuzz boost your email marketing ROI?

  • Check your email preview

    You can preview your email once you’ve created it to look for typos and formatting problems. You may also verify your email’s AMP and HTML versions on desktop and mobile devices using the preview features. This function aids in testing how responsive your email templates are.

    In addition, SendBuzz automatically sends an HTML email as a backup in the event that the mail providers do not accept AMP emails. As you can see, if the reader’s mail provider doesn’t support AMP emails, they will receive a redirect link rather than a form.

  • Comprehensive email analytics

    You can see a detailed overview of your email performance in the analytics dashboard. This summary enables you to determine which campaigns are doing well and which may be costing you money without producing a significant return on investment.

  • Inbox rotation and flow testing

    To make the campaign look more natural SendBuzz has a feature called Inbox Rotation that offers you to add each of your sending accounts to a single campaign for each of your sending accounts. This lets you randomize your sending mailboxes and phone number to get more deliverability.

    With flow testing you can run two different sequences to know which one of the sequences is working for you. With these features you can test your sequences and select the combination of the best ways to approach the prospects.

Wrap up

Even though email marketing ROI might be complicated and challenging to calculate, it is the most useful metric. Because email generates more money than any other medium, not increasing email ROI could cost you numerous opportunities for improvement. SendBuzz has made it easy for you, the sales reporting and analysis feature of the SendBuzz let’s you analyze your sales engagement process.

With the correct data, you can automate the entire process, segment recipients, and personalize emails to maximize your business’s return on investment. Additionally, AMP emails add interactivity, dispelling the misconception that emails are static or uninteresting. Use it to increase your return on investment, then!