eM-ROI - Email Marketing Return on Investment (M-ROI)

Beginning with latest news from the world Marketing, As we all know that "e-mail" has turned 32 years old, on last 30th August. This process or method of transferring message was invented by Indian born Mr.V.A.Shiva Ayyadurai in the year 1978. Since then Email has transformed and got better and better with technology in last 3 decades. And now in today's World, Email has become part of our day to day life.

If we look at our mail's then more than 90% of our mail box is flooded with the some of the other marketing mailer with various kind of offers,discounts,banking or financial products or new product launch mailers. This proves that email has become primary source of communication from all the big MNC's to the SME's to Local Brand.

Due to heavy cost and efforts involved in the conventional communication techniques like printing,hoardings and distribution of materials, Many organisation has started changing their approach towards the cheaper and effective means of communications. And, Email is the only answer to all their needs of Simple,Effective,Measurable and Direct Communication.

Why and How is the email Marketing evolve ?

Due to its Simplicity and effectiveness many organisation has adapt the emailing as the primary marketing activity to communicate to their targeted clients on regular basis which also becomes the great way to increase their direct sales with the lowest possible cost.if you look at your inbox which may have Retail to Pharma, Food to Accessories, Banking to Aviation mailers from different sectors has accepted email marketing as their major activity for Marketing Communication.

Though, It is the cheapest way of communication but it incurred cost to the organisation. An email can starts from few paise to ruppes and when you use as marketing tool these cheap rate may incurred cost from thousand to lacs of ruppes for per campaigns which is ultimately depends upon your size of the Target.

Now, When there is Investments, we always starts measuring Return on it.Here in email marketing organisation have advantage to measure their communication and actual effectiveness of their campaigns.

There are few factors or tools which are associated with email Marketing to measure the impacts are-:

1. Sent
2. Delivered
3. Open
4. Click
5. Unique Open
6. Unique Click
7. Bounce
8. Abuse
9. Forwards
10. Open Ratio
11. Open to Click Ratio
12. Click to Lead Ratio
13. Conversion
14. Cost per campaign
15. Cost Per lead
16. Cost per Conversion

By using the above factors associated with email Marketing one can easily derive the Return on Investment for any campaign used for Product,Business Units or Product line or general branding campaign which is other way very difficult to measure (except online marketing).

Email campaigning success and failure varies from sector to sector, organisation to organisation, Product to Product and the method of creation of mailers and the service provider of the organisation.So, eM-ROI varies with the factors associated with it.

eM-ROI termed includes the components such as-:

1. Cost per email
2. Audience Size
3. Cost of the Campaign
4. No. of Respondents
5. Cost Per Respondent
6. Revenue Generated
7. Profit

M-ROI

Now, You need to use all the above into the mathematical formula to calculate your eM-ROI which ultimately proves the efficiency and effectiveness of your email Marketing campaigns.Try and use as per your business needs and analyse,enhance and maximize your current eM-ROI.