ROI – what you get back

There are different ways of measuring how well our email marketing takes us toward our goals. A common measurement for comparing different types of activities is ROI, Return on Investment. This measures your profits in relation to your costs – how many dollars we get back in relation to how many dollars we invested in the activity.

Many studies show that email marketing is at the head of the class on the ROI scale, that it is the activity that gives the best returns. On average, it is said that email marketing returns 40 times the invested money. However, it’s not quite clear where this number comes from or how it has been measured. Nevertheless, ROI in the email channel is decidedly high, but how high it gets depends on what we bring to I, the investment.

It is important that we invest time in planning and creating content in order to achieve long term results. When we increase investment, the profit/investment ratio may decrease in the short term, but we lay the groundwork for long lasting relationships.

Maybe a very high ROI is actually a sign that you should increase your investment?

Next: Different types of KPI's

This is an article in the Carma Campus Class in Analyze.