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As a business owner, you will understandably be focused on the return on investment (ROI) of all your marketing channels.

So, your email marketing is no exception!

To calculate your ROI (as I’m sure you already know), you use the following formula:

((Revenue – Cost) / Cost) x 100 = ROI%

Tracking your revenue and where sales have come from becomes a lot easier if you’ve got specific email marketing software (such as Klaviyo, Infusionsoft or MailChimp).

And not only will they specify the amount of revenue made through each campaign or flow, but you can also use them to track a few other things, such as:

  • When customers have come back and bought after having opened a specific email, even if they did not go through that particular email and buy
  • The performance of all your flows and campaigns, so you can see which are the most successful…and duplicate that for others!
  • Your most active customers/subscribers, so you know who to target

All of this helps towards understanding how to improve your ROI.

After all, once you know what works and what doesn’t, you’ll have a better idea of how to please your customers and get them returning to your store!

Calculating cost can be a little more difficult.

This is because you also have to take the amount of time that’s gone into creating the emails into consideration.

But, once you’ve calculated your ROI, you can then look at the areas that will all help towards improving it…

Open rate and click-through rates

The more people you can get opening and clicking on your emails, the higher the chance of conversion will be.

The more customers you can get converting, the better your revenue is!

When you consider that it costs five times as much to acquire a new customer than to keep an existing one…

If you can get more customers converting through email, you’re increasing your revenue and reducing the cost of acquiring them!

So, your ROI also improves. 


You don’t want to be wasting time and effort on emails that aren’t being delivered.

This will obviously have an impact on your ROI (after all, time is money!)

Ensuring your emails are delivered is important for two main reasons:

  1. The more customers that receive your emails, the more customers there are to convert
  2. Non-delivered emails (such as emails that have bounced or hit your customer’s spam folder) can negatively affect your sender reputation

By improving your email deliverability, you’re increasing your opportunities to convert your customers again and again.


If your email list is properly segmented, that means your customers will be receiving the most relevant content to them.

Whether that’s an email sending them to a blog post that you can use to introduce a particular product/service that you know they’ll be interested in…

Or a normal sales email for that product or service.

You can segment your list based on behaviour, interests or even past purchases, to name just a few.

Ultimately, the more relevant the contents of the email, the more likely they are to engage with it.

This will lead to repeat purchases, which will help improve your bottom line!


Automating your emails is a great way to increase revenue, and also helps with reducing costs…

Whilst time and effort are required in the beginning to get the flows set up, once they’re up and going you’ll be reaping the rewards!

When a customer takes a specific action (or doesn’t do something, such as checkout), the relevant email sequence will be triggered…

All without you having lifted a finger!

Here are some email sequences that you definitely should have automatically going in the background:

  • Abandoned cart sequence. With an average of almost 70% of online shopping carts being abandoned (Baymard Institute), deploying a sequence of emails to remind shoppers to return to their carts is a great way to make some extra revenue!
  • Browse abandonment sequences. Similarly, sending an email sequence to remind customers of items they have been looking at can be another great way to boost your revenue.
  • Cross-selling emails. When a customer has bought an item, you should be sending them a cross-sell email as part of your post-purchase sequence. As long as the item is complementary or adds value to what they’ve already purchased, they’re more likely to buy in the early days after their first purchase.
  • Win-back emails. For those customers that have become inactive, you can automatically set up a sequence to go out after, say, three months of inactivity. The aim will be to get them back to your store, maybe by offering a discount code, to give them an extra incentive to purchase from you.

Learn from what you’ve already done

In other words, what worked and what didn’t?

Your email marketing software will allow you to track this really easily and you can even export the data so that you can start to create patterns, such as:

  • What types of subject lines got the highest open rates?
  • What email content got the most click-throughs?
  • Which emails brought in the most revenue?

Once you’ve figured this out, you can give your customers more of what they respond best to (or convert from).

Just make sure that you do change it up, so they don’t become blind to the same subject lines, and so on.

Ultimately, the key to improving your email marketing ROI is to increase your revenue and reduce your costs.

Using the tips within this post will help you do one, if not both!

If you’d like to find out more about how to improve your email marketing ROI (and your bottom line) book a quick chat with us to see how we can help you.