What Is the Average ROI for Email Marketing?

What Is the Average ROI for Email Marketing?

Nov 23, 2022

AudiencePoint Team

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Email marketing is an effective way for brands to communicate with their audiences. If you’re thinking about investing in email marketing to boost engagement, you may be wondering what the return on investment (ROI) will be from your efforts. This article will outline why email marketing is effective, the average ROI on email marketing, and how email ROI is measured. 

What Is Return on Investment (ROI) In Email Marketing?

The ROI for email marketing is the net profit a company gains from email marketing efforts. It helps organizations understand how successful email campaigns are, and decide which types of campaigns should be focused on in the future.

What Is the Average ROI on Email Marketing?

While it can vary a lot by industry, email marketing ROI statistics show that the average ROI for email marketing in 2022 is $36 for every $1 spent. This number can often be increased when email marketing is optimized well. Some businesses even see ROIs as great as $70 for every $1 spent on email marketing. 

How Is Email Marketing ROI Calculated?

Calculating ROI will help you get a good idea of email marketing value based on what you invested into it. The formula for email marketing ROI is: (total revenue generated – total amount spent) ÷ total amount spent = email ROI. For example, if you generated $5,000 in profit from a marketing email and spent $100 to create the design and email copy, your ROI would be $49 for every $1 spent (5,000 – 100 = 4,900 ÷ 100 = $49). 

Is Email Marketing Still Effective in 2023?

Email marketing continues to be effective in 2023 for several reasons. The top aspects that make email marketing effective are: 

  • Affordability: Marketing emails are affordable to create and send to your audience. Hiring a marketing agency to create your marketing emails is usually very budget-friendly. You can also save money by creating emails yourself. 
  • Increase sales volume: When brands send marketing emails, it significantly increases sales. Research has shown that consumers spend 138% more due to marketing emails.  
  • More consistent reach than social media: One of the downfalls of social media marketing is you don’t get consistent reach. Social media algorithms determine who sees your content, so some of your followers may never even know about your post. However, with email marketing, your emails can be sent to everyone on your email list. 
  • Customer engagement: Marketing emails create an excellent way to keep customers engaged, even after they make a purchase. Consistently engaging customers through emails will lead to success in building a loyal customer base since they will be reminded of your product or service.

All these aspects contribute to the effectiveness of email marketing campaigns and the high percentage of sales that come from email marketing. 

What Percentage of Sales Come from Email Marketing?

Email is also a highly effective way to generate sales. Research has shown that 50.7% of consumers are influenced to make a buying decision when they receive a marketing email. This shows how effective email marketing can be in making consumers take action. 

Most businesses can get an average of 25% to 35% of their sales through email, although this can vary greatly by industry. Email leads to a significant amount of many companies’ sales because customers who sign up for an email list usually already know about the company and have engaged with the brand in some way. 

Does Email Marketing Have the Highest ROI?

Email marketing is one of the highest ROI marketing activities a company can undertake, with it having a significantly higher ROI than most other marketing options. This is due to its cost-effectiveness and how simple and cheap it is to scale compared to other forms of marketing.

What Is the Average ROI on Social Media Marketing Compared to Email Marketing?

The average ROI on social media marketing is between $2 to $5 for every $1 spent. This is significantly lower than email marketing due to the inconsistencies of social media platforms. 

The fluctuating reach on social media and the different types of engagement followers can have with content can cause those who see your social media posts to be less ready to make a purchase or follow a call to action. This makes email marketing a more effective way to consistently reach your most loyal customer base. 

What Is the Importance of Data for Email Marketing

Tracking data is important to measure the success of your marketing emails. By tracking key metrics like open rate, bounce rate, conversion rate, and click-through rate, you can better understand where you must improve your marketing emails to increase your ROI even further.

How AudiencePoint Can Help Increase the Average ROI for Your Email Campaigns

AudiencePoint can help increase the ROI for your email campaigns. Our email insight software helps you track pertinent data about email campaigns, optimize send times, and analyze the activity of your email list. AudiencePoint takes data tracking a step further by providing you with actionable insights so you can take steps to improve your email campaigns as you go. Contact us today to learn more about how AudiencePoint can help you.