In the context of email marketing, how is return on investment defined?

Return on investment (ROI) in the context of email marketing is defined as the overall return your email campaigns bring in from your business's initial investment. This definition encapsulates the effectiveness of the campaigns by calculating the revenue generated relative to the costs associated with creating and sending those emails.

In email marketing, understanding ROI is critical because it helps businesses evaluate the performance of their campaigns, justify marketing spends, and make informed decisions for future strategies. It takes into account both the financial inputs (costs incurred for design, execution, and any associated tools or services) and financial outputs (revenue directly attributed to those email campaigns). Thus, a positive ROI indicates successful campaigns that generate more revenue than they cost to execute.

Defining ROI solely in terms of total emails sent, overall revenue generated without context, or average cost per click does not provide a comprehensive picture of the actual profitability and efficacy of those email marketing efforts. Instead, focusing on the relationship between investment and return gives marketers valuable insights into how to optimize their strategies for better financial outcomes.