To calculate your net gain, you’ll need to estimate how much profit you made from each conversion and subtract that amount from the total cost of the campaign. To make things easier, you can use email marketing software or marketing automation tools that will automatically track, monitor and analyze your data for you. You can also use the metric called cost per conversion (CPC) to see how much it costs you to convert each email subscriber. The lower this number is, the better.

It’s important to keep in mind that email marketing is only one part of your overall digital marketing strategy. You need to promote your emails on other platforms, such as social media and search engines, in order to drive more traffic to your website and ultimately generate more sales and leads. The best way to increase your ROI is to deliver relevant and personalized content to your subscribers. You can do this by creating segmentations based on purchase behavior, demographics or interests. This is personalization taken to the next level because it allows you to send targeted messages that are more likely to result in a conversion. For example, brand new leads will need a different type of message than longtime customers.

Another important metric is click through rate (CTR). This is the percentage of emails that were opened and clicked on by recipients. You can improve your CTR by making sure your emails are mobile friendly and the subject lines include an appealing call to action. A/B testing can also help you identify which subject lines and days of the week work best for your audience.

Increasing your CTR can also boost your email ROI by driving more traffic back to your site. Using links to your homepage or specific blog posts can help improve this metric. This metric doesn’t necessarily tie directly to sales because people who click on a link will be redirected to your website where they’ll have to make the purchase themselves.

Other ways to increase your email marketing ROI include reducing spam complaints by making sure the “from” name for your campaigns aligns closely with the branding on the page where contacts signed up for your list. Also, avoid using co-registration or third party lists and try to limit the number of times you email contacts a week. Too many emails can result in high bounce rates and poor deliverability, which will hurt your overall ROI.