Email marketing is one of the most effective ways to reach and engage with your target audience. But how do you measure the success of your email campaigns? The answer lies in calculating your email marketing return on investment (ROI).

In this article, we'll explore what email marketing ROI is, how to calculate it, and strategies for improving your ROI. By the end, you'll have a comprehensive understanding of how to maximize the impact of your email marketing campaigns.

What is Email Marketing ROI?

email marketing return on investment

Email marketing ROI is a measure of the revenue generated from your email campaigns compared to the cost of running those campaigns. In other words, it's a way to determine whether your email marketing efforts are profitable.

Calculating your email marketing ROI involves taking into account the following factors:

  • The cost of creating and sending your emails
  • The revenue generated from your email campaigns
  • The number of subscribers on your email list
  • The conversion rate of your emails (i.e., the percentage of subscribers who take the desired action, such as making a purchase)

How to Calculate Email Marketing ROI

To calculate your email marketing ROI, you'll need to follow these steps:

  1. Determine the total cost of your email campaign. This includes the cost of creating your emails, any fees associated with your email service provider, and any other expenses related to your campaign.
  2. Calculate the revenue generated from your email campaign. This includes any sales or conversions resulting from your emails.
  3. Divide the revenue generated by the total cost of your campaign.
  4. Multiply the result by 100 to get your ROI percentage.

For example, let's say you spent $500 on an email campaign that generated $2,000 in revenue. Your ROI would be calculated as follows:

($2,000 - $500) / $500 x 100 = 300%

This means that for every dollar you spent on your email campaign, you generated $3 in revenue.

Strategies for Improving Your Email Marketing ROI

email marketing return on investment

Now that you know how to calculate your email marketing ROI, let's explore some strategies for improving it.

Segment Your Email List

Segmenting your email list involves dividing your subscribers into smaller groups based on specific criteria, such as demographics, interests, or behavior. By sending targeted emails to each segment, you can increase the relevance and effectiveness of your campaigns.

For example, if you run an online clothing store, you could segment your email list based on gender, age, or purchase history. This would allow you to send personalized emails with product recommendations or promotions that are more likely to resonate with each subscriber.

Create Compelling Subject Lines

Your email subject line is the first thing your subscribers will see in their inbox. A compelling subject line can increase the open rate of your emails and ultimately lead to more conversions.

To create effective subject lines, try to be concise, specific, and relevant to your audience. Use action-oriented language and include a sense of urgency or exclusivity to encourage subscribers to open your emails.

Optimize Your Email Content

The content of your emails should be engaging, informative, and visually appealing. Use a clear and concise writing style, and include images or videos to break up the text.

Make sure your emails are optimized for mobile devices, as more than half of all emails are opened on smartphones or tablets. Use a responsive email design that adjusts to different screen sizes and test your emails on multiple devices before sending them out.

Track Your Results and Adjust Your Strategy

To improve your email marketing ROI over time, it's important to track your results and adjust your strategy accordingly. Use an email marketing platform that provides detailed analytics, such as open rates, click-through rates, and conversion rates.

Analyze your data to identify trends and patterns in subscriber behavior, and use this information to refine your email content, segmentation, and targeting. Experiment with different strategies and tactics to see what works best for your audience.


Email marketing ROI is a crucial metric for measuring the success of your email campaigns. By calculating your ROI and implementing strategies for improvement, you can maximize the impact of your email marketing efforts and drive more revenue for your business.

Remember to segment your email list, create compelling subject lines, optimize your email content, and track your results to continually improve your email marketing ROI. With these tips and strategies, you'll be well on your way to achieving greater success with your email campaigns.


What is a good email marketing ROI?

A good email marketing ROI varies depending on your industry, business model, and campaign goals. However, a benchmark for a successful email campaign is an ROI of 100-200%.

How can I improve my email open rates?

To improve your email open rates, try using a compelling subject line, segmenting your email list, and optimizing your email content for mobile devices. You can also experiment with different send times and frequency to see what works best for your audience.

What is the best email marketing platform for calculating ROI?

There are many email marketing platforms that provide detailed analytics and ROI tracking, such as Constant Contact, Mailchimp, and HubSpot. Choose a platform that fits your budget and offers the features and integrations you need to measure and improve your email marketing ROI.