cost effectiveness

How to Measure the Cost Effectiveness of an Email Campaign?

To measure the cost effectiveness of an email campaign, you need to evaluate both the costs and the returns. Here are some key metrics:
Cost Per Acquisition (CPA): This metric calculates the cost of acquiring a new customer through an email campaign. It is determined by dividing the total campaign costs by the number of new customers acquired.
Conversion Rate: This measures the percentage of email recipients who take the desired action (such as making a purchase). A higher conversion rate typically indicates a more cost-effective campaign.
Click-Through Rate (CTR): This metric tracks the percentage of recipients who clicked on links within the email. A higher CTR often correlates with higher engagement and conversion rates.
Return on Investment (ROI): ROI is calculated by subtracting the total costs from the total revenue generated by the campaign, then dividing by the total costs. A positive ROI indicates a cost-effective campaign.

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