What does email ROI measure?

Email ROI, or Return on Investment, is a critical metric used to evaluate the cost-effectiveness of email marketing campaigns. It quantifies the revenue generated from an email marketing initiative relative to the costs incurred in running that campaign, which may include expenses such as design, personnel, technology, and more. By measuring ROI, marketers can determine the success of their campaigns in financial terms, enabling them to make informed decisions about future strategies and budget allocations.

In contrast, conversion rate focuses on the percentage of recipients who take a desired action after engaging with an email, which is only one aspect of the overall effectiveness of a campaign. Email engagement refers to how recipients interact with emails, such as opening rates and click-through rates, but it does not directly measure the financial return on the investment made. Job security is not a relevant metric in this context and does not connect to the performance assessment of email marketing efforts. Thus, the measurement of cost-effectiveness encompasses the essential elements needed to evaluate the financial impact of email marketing endeavors.