Glossary

ROI

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ROI

ROI, or Return on Investment, is a metric that tells you whether your marketing efforts are actually worth it. It measures how much revenue you generate compared to what you spent, typically expressed as a percentage.  

The formula:  

(Profit or loss / Total investment) * 100 = ROI

For example:  

You spent $1,000 on an email campaign and made $5,000 in sales from it. 

Your ROI = (5,000 - 1,000) / 1,000 * 100 = 400%

In email marketing, ROI isn’t just a nice-to-have – it’s the metric.  

It shows whether your segmentation, creative, and strategy actually drove results. Email consistently delivers one of the highest ROIs of any marketing channel, which is why it’s a cornerstone of performance marketing.  

Tips to improve email ROI: 

  • Focus on list quality over list size 
  • Send timely, personalized messages based on behavior 
  • Use A/B testing to optimize subject lines, send time, and content 
  • Track not just opens and clicks, but conversions and revenue attribution  

ROI isn’t just about revenue; it can include time saved, customer retention, or reduced churn. Define what return means for you before measuring it. 

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