by W. Jeffrey Rice, Senior Research Analyst
Chart title: Email marketing ROI as a percentage reported by survey respondentsQ. What is the estimated ROI from email marketing programs for your organization?Click here to see a larger, printable version of this chart
As we discovered in this year’s study, the email process of achieving or increasing measurable ROI was the third-greatest priority for marketers. A textbook calculation formula for return on investment is:
ROI = (Gain from Investment – Cost of Investment) / (Cost of Investment)
Each chief financial officer will vary slightly in how he or she calculates the gains and costs of the investment, so it is crucial to meet with the finance department before beginning the exercise to ensure consistency.
Respondents reported an overall average of 77%, while the largest percentage of respondents (22%) reported double the organization’s money for every dollar invested.
Our research suggests establishing a formal, repeatable process for funnel optimization and ROI. As an organization matures from the Trial phase to the Strategic phase, its email marketing program ROI will rise.
- Marketers in the Trial phase of email marketing maturity report an average 50% ROI
- Marketers in the Transition phase report an average 62% ROI
- Marketers in the Strategic phase report an average 78% ROI
For additional research data and insights about email marketing, download and read the free Executive Summary
from the MarketingSherpa 2012 Email Marketing Benchmark Report – Research and Insights for Engaging Email Subscribers
Useful links related to this research2012 Email Marketing Benchmark Report Marketing Research Chart: Email marketers who quantify ROI are in the minorityEmail Marketing: Show me the ROIEmail Marketing: The 3 most successful tactics of 2011 (with case studies) Complimentary Download: Automated Email ROI Worksheet