Surveys show that more small businesses are using e-mail as a marketing and advertising tool. The obvious reasons: no printing or
The problem: Most novice e-marketers have no idea how to calculate their return on investment (ROI). And while the money you spend on an e-mail campaign isn't likely to make or break your business, measuring ROI can help you better target your marketing dollars.
The solution: Use free e-marketing ROI calculators available on the Internet. Some require lots of exacting information. Others are blunt tools to promote other services.
The most useful ROI calculators are thorough but easy to use. Their formulas should assign numbers to intangible benefits and costs, plus allow you to estimate your ROI before, during and after your campaign.
Example: Say you already know that 2 percent of clicks on your Web site result in sales. You estimate that $250 of e-mail marketing costs will buy about 1,000 clicks. Two percent of 1,000 clicks equals 20 new customers. The $250 marketing cost divided by 20 equals $12.50 per customer.
Good resources: You can estimate your ROI for e-mail (and snail mail) campaigns at these sites:
• www.marketingtoday.com/tools/ roi_calculator.htm
• www.emaillabs.com/roi_calculator. html
Final note: The eMarketing Associ-ation offers several online courses to teach you the ins and outs of e-marketing. Courses in basic e-marketing, Web site marketing and e-mail marketing run under $100.