Does the phrase “return on investment” ring a bell to you? Maybe it makes you perk up or maybe cringe. Either way, it’s not something you can ignore when it comes to email marketing.
In today’s world, everything is so fast paced. It is important to understand and adjust your marketing approach based on your goals and the needs of your current and potential patients. With that in mind, it’s time to look at what ROI is and how it can help your medical practice. Tracking the ROI of your email marketing campaigns is just one way for you to assess the success of your efforts. It allows you to identify and make the necessary changes to appeal to your intended audience. To have a high ROI, you need to understand your audience, have a clear goal, and have well-defined performance metrics. Let’s take a closer look at how you can calculate ROI and the other factors you need to keep in mind.
How to Measure Your Email Marketing ROI?According to Hubspot, to determine your email marketing ROI, you need to simply divide your total revenue generated by your campaigns by your total spent on the campaigns. Here’s how they explain to calculate it.
- How to Calculate ROI: [($ in additional sales made minus $ invested in the campaign) ÷ $ invested in the campaign] * 100
- Example: ($1,000 in additional sales - $100 invested in the campaign / $100 invested in the campaign) * 100 = a 900% return on investment for the campaign
While it may seem unlikely that you would ever have an ROI of 900%, this model helps to visualize how this equation can help practices determine the success of email marketing. The final percentage calculated describes what is gained versus what was put into a particular email campaign. The goal is to have campaigns that are successful but don’t require an extensive amount of time and money invested. A higher percentage indicates how successful a medical practice is at this.
Goals & Key Email Marketing Metrics to WatchWhile ROI reports offer insight on how successful your campaigns are, don’t forget to look at the other factors that influence your results. To understand if email marketing is working for your practice, it is a good idea to look at a variety of key performance indicators (KPIs). Check out this list of goals and key metrics that will help evaluate your email marketing efforts.
1. Goal: Grow Your Email List | Metric: List Growth Rate
Many medical practices start their email campaigns with the goal of simply growing their list of current and potential patients. They want to broaden their audience and share their message with more people.
The key to a successful email marketing campaign is having enough people who tune in, participate, and then take action. You don’t want to send emails to people that aren’t interested in the services you are providing or the content you are sharing. If this is your goal, you must pay attention to your list growth rate. Again, Hubspot helps us out with this handy-dandy calculation.
- How to Calculate List Growth Rate: ([(# of new subscribers) minus (# of unsubscribes + email/spam complaints)] ÷ Total # of email addresses on your list]) * 100
- Example: (500 new subscribers - 100 unsubscribes and email/spam complaints) ÷ 10,000 email addresses on the list * 100 = 4% list growth rate
2. Goal: Inspire Patients to Click on Links | Metric: Clickthrough RateAs we’ve said before, every email you send out should have a specific goal. One of those goals should be to provide compelling enough information that your potential patients click on one of the links in your email. Whether that link is to watch a video, visit your blog, or fill out a form, a key metric to pay attention to is how many of the people on your list are clicking on one or more of the links in your email. This is how Hubspot calculates this figure:
- How to Calculate Clickthrough Rate: (Total clicks OR unique clicks ÷ # of delivered emails) * 100
- Example: 500 total clicks ÷ 10,000 delivered emails * 100 = 5% clickthrough rate
If your audience opens the email, looks around, and doesn't click on something, that should give you an idea that the information you are providing is not as relevant as you would like it to be. If this is the case, your ROI probably isn't where you want it.
Your message needs to be relevant and compelling enough so that your readers can’t help but click on a link for more information! Pay attention to your wording, how you design your email, and how clear you make it that they can click on something. Text links and buttons help with this!
3. Goal: Position Patients to Take Action | Metric: Conversion RateWhile getting a current or potential patient to click on a link within your email is a great first step, we need them to take the next step - actually completing an action. Your email marketing conversion rate indicates the number of email recipients who clicked on a link and took the desired action - whether that was downloading something, filling out a form, or making a purchase. Hubspot’s template for calculating this is:
- How to Calculate Conversion Rate: (# of people who completed the desired action ÷ #of total emails delivered) * 100
- Example: 400 people who completed the desired action ÷ 10,000 total email delivered * 100 = 4% conversion rate
As you can imagine, it is vital that your goal is very clear and that your audience knows what you want them to do. After all, if you don’t make it clear what they are supposed to click on, and what they are supposed to do next, your conversion rate will not be what you want it to be.
There are a lot of different ways you can improve your conversion rate - everything from using a strategic landing page to creating a unique offer and form. Remember, your conversion rate is tied to your call to action (CTA) - what you are directing your audience to do. So make sure your CTA is specific, measurable, and compelling! Make sure that you link your email marketing analytics with your web analytics so you can easily track this metric.
Focusing on the ROI of your emailing marketing campaigns is a simple way to track how you are doing. But instead of just focusing on one aspect, make sure that you incorporate several of these key metrics into your analysis. Not only will it help you eliminate the factor of sending emails to people that are uninterested in you content, but it will make sure that the people that are interested in your content will follow through and complete the desired action.