By now your planning for 2009 email marketing should be in full swing, but if you’re not calculating ROI you could be setting yourself up to repeat the same mistakes from years’ past. Additionally, you could be endangering your own budget or your own job if you can’t prove the success of your email campaigns to the powers-that-be in your organization.
With the economy down, and email volumes ever increasing, it has become mission critical to measure the true ROI of your past and present campaigns, and only repeat the top performers. Need a refresher on how to find your ROI? Here is the most common equation that marketers use:
ROI = [(Revenue – Cost) / Cost] x 100
Let’s use an example of a campaign that cost $400 to send and brought in $1,000 in revenue:
[($1000 - $400) / $400] x 100
So, ($600 / $400) x 100 = 150% ROI
Keep in mind that the above campaign cost does not account for time, wage hours or any other internal resources spent creating and sending the message, so you will need to factor in those values to the total cost to help you determine success. For a more detailed ROI calculation, test out the Bronto ROI Calculator Widget.
Additionally, you need to decide what percentage is the baseline for your organization’s success – is it 75% ROI, 100%, or more? Once you know your baseline, you can quickly identify winners to repeat in the future. For campaigns that fall below the mark, you can either modify them (cut the cost, revise the offer price, etc.) or drop them altogether from your campaign calendar.
So get out there, start working those numbers, and market smarter in 2009!
Julie Waite
Account Manager at Bronto
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