How to Measure Return on Investment for Email Marketing
How to measure return on investment for email marketing
Half of email marketing agencies taking part in the DMA
email benchmarking study reported less than 40% of their clients
tracking ROI. (Source: DMA Email Marketing Council)
One of the main benefits of email marketing is its measurability. It
can also be its down-fall- many marketers feeling like they were
drowning in simple metrics such as clicks and opens. This obsession on
these performance metrics cloud more traditional key performance
58.4% of marketers within the Adestra "Challenges facing UK email marketers" survey [http://www.adestra.co.uk/adestra_clinic_at_online_show]
feel they that were unable to use the results of their campaigns in
strategic decision making or for calculating return on investment
(ROI). This hinders the development of their email program and feeds
the common perception held by many senior management that email is a
cheap channel and not a traditional, measurable direct marketing
With an over-emphasis on clicks and opens, many marketers are not
tracking ROI. This is mainly down to the perception that they need
complicated tracking systems and solutions. Costly web analytics
packages are being deployed in some cases.
Many simple methods of measuring ROI are over-looked with many
believing they need web analytics solutions that provide click stream
tracking. Adestra recommend you consider simple, low cost methods of
providing your email campaigns are working before investing within such
concepts. These can include:
Duplicate marketing pages to separate orders from email marketing Simply duplicate your marketing pages and direct all email promotion
to this new page. All orders are tracked against a separate product
code (eg BSC001b) allowing easy revenue accountability at a low
investment. Effectively, your existing sales reporting tracks ROI!
Use priority codes to label orders to identify orders from your email marketing Get a customer to quote a priority code when ordering. To ensure
they give this code, we recommend you provide an incentive (perhaps a
discount or a complimentary product). Simple to action, this method
provides considerable visibility.
Check for buyers in your email database Using Adestra's Message Focus, you are able to drill into your data and discover if the person who ordered actually received
an email communication from you. Using our contact history tool, you're
able to see when they opened emails, clicked through and on what links,
to provide you with the people who began the purchase process.
Ask them! Conduct a survey of your buyers and ask them what communications they remember seeing before they made the decision to buy!
These simple methods of measuring ROI should be used on provisional
communications before considering investing in more complicated and
expensive solutions. When you are ready to invest, there are a number
of options available to you, including:
More complicated email marketing solutions
Use Adestra hosted forms By encouraging people to click through to an Adestra hosted form as
the call to action, we can pre-fill fields with campaign codes. By
hiding these fields from a recipient, they pass this vital marketing
intelligence to you every time they complete a form without ever knowing
Web analytics Many marketers invest in a web analytics program. These can be free
software available off the web or in most cases paid for more programs.
These programs allow you to track people as they move through your
site. By using URLs which contain a source code (eg
http://www.adestra.co.uk/?src=Campaign1) you can track which campaign people
Alternately, we can use a specific web address to bounce people
from eg [http://email.adestra.co.uk] so that we know that everyone who
is referred to the web site from this url is definitely from an email
Cookies If we use a branded web address in your emails (eg
http://emails.client.com) then it is possible for Adestra to lay a
cookie on the recipient's machine to be read by the server which is
carrying out the transaction (www.client.com). You can embed campaign
codes in the cookie information automatically, and you use your own web
analytics programs to measure orders from email.
Tracking and measuring your email marketing program is essential to
improving and refining your marketing strategy. This measurement
does not necessarily have to involve significant investments.