What is the True ROI of Email Marketing?

John R Ramos • February 19, 2020
I always get asked if email still a valuable part of a digital marketing strategy. The answer is a resounding YES!
A thousand times, yes!

Digital Marketing as we know it today is changing at the speed of light but email marketing remains one of the best ways to reach and engage your target audience.  Email marketing’s power lies in its ability to provide businesses of all sizes an attractive return on investment.  In fact, according to a recent study, the median email marketing ROI is 122%.  That’s four times higher than any other digital marketing channel.

If you think this sounds too good to be true, you’re not alone.  The best way to break down this incredibly high return on investment percentage is to take a look at the true value of email marketing ROI when it comes to different aspects of your business.  You’d be surprised to know that the percentage of digital marketers who actually understands their marketing funnels’ ROI and the factors that affect it is only less than 30%.  So below, I will explain two different ways that email marketing offers your business a return on investment and how you can measure ROI over the course of your email campaigns.

Email Marketing ROI #1: Increase Company Revenue

Though there are many different tools in your digital marketing toolbox, email marketing continues to be the greatest driver of revenue for many businesses.  Revenue from email marketing ROI continues to improve year over year.  This suggests that consumers are continuing to engage with brands through email marketing year after year.

There are a few different reasons for this.  The number of email users in the U.S. continues to grow each year.  This year (2020), the number of email users is estimated to grow to about 259 million.  As more and more people sign up for an email address and use it on a regular basis, they also start to use this communication channel to keep in touch with their favorite brands.  As a matter of fact, in another recent study, more than 50% of users prefer to get updates from the brands they follow through email.

The number of new email users is not the only contributing factor to high email marketing ROI when it comes to revenue growth.  The general affordability of this digital marketing tactic also makes it an attractive option for brands that want to grow, reach, and engage their target audiences, while still enjoying the fruits of their labor.

When it comes down to the amount of revenue your company can stand to gain through email marketing, 
Constant Contact reports that for every $1 a company spends on email marketing, they can expect to earn $38 of revenue on average.  While another survey reveals that email marketing drives 25% of the overall revenues from those companies surveyed.  The affordability coupled with the potential for excellent revenue growth makes email marketing one of the best digital marketing tactics for small businesses with limited marketing budgets.

With proper attribution, your company should be able to determine how much revenue is generated through your email marketing campaigns, down to the very email that finally convinced the consumer to make a purchase.  Using email analytics to track and measure purchases made by consumers after they click on email content, you can add the sums of these purchases together to determine revenue.

If you are unable to track the exact revenue of each email directly, you can still calculate the average return on investment when it comes to email revenue.  Multiply the number of conversions you have made through email by the value of an average order.  This helps give you a better idea of how much revenue you are generating through your email marketing even when exact numbers are not available.

There are a few other indicators for Email Marketing ROI.   It also helps businesses improve the number of sales and conversions.  That’s because email marketing helps nurture leads and move them through the marketing funnel closer to making a purchase.

There are a number of different metrics you can measure to determine the return on investment from email lead nurturing.  In the end, it will depend on what your goals are and how you measure the success of your lead nurturing efforts.  For example, is revenue your only concern? Or are you interested in tracking how quickly your emails help move consumers through the funnel?

Here are a few different measurements you can look at when trying to determine your email nurturing ROI:

Engagement – By measuring engagement, you are able to see how well your company is interacting with customers.  To accurately measure engagement, you’ll want to consider the following metrics: open rates, click rates, unsubscribes, and conversions.

Lead Acceleration – Measuring how long it takes your nurtured email leads to move from the awareness stage to consideration and from consideration to the decision stage is another way you can determine your email marketing ROI.  For a better understanding of your email nurturing campaign success, you’ll want to look at how fast non-nurtured leads move and compare this to those who have engaged with your campaigns.

Impact on Revenue – Though it is not common for a user to make a purchase based on one email, you can measure the impact your campaigns have on your revenue over time across multiple touch points.  In order to measure this metric, you’ll need to consider the value of each engagement across your digital marketing campaign, including nurturing tactics beyond emails.

Measuring the return on investment for your email nurturing efforts can get a little complex as it can be challenging to determine the value of each touch point. This is where a CRM or email automation program can come in handy. These programs have algorithms that can help you more accurately and consistently determine the ROI of your email nurturing campaigns.

Email Marketing ROI #2: Increased Website Traffic

One of the greatest marketing challenges that businesses face is generating website traffic.  In fact, 54% of those marketers surveyed said that this was their biggest obstacle.  Though there are a variety of digital marketing tactics that can help you improve website traffic, like SEO and social media management, email marketing can also help provide a return on investment when it comes to driving traffic to your website.

Not only does email marketing help increase traffic back to your website, but it helps make sure that the traffic going back to your site is relevant.  If consumers are regularly engaging with your email marketing content then they have already shown an interest in your brand.  This suggests not only that they are qualified leads but that they may be likely to make a purchase.  The more high-quality traffic that you can drive back to your website, the more opportunities you have to engage these qualified leads and influence more conversions.

One of the most common ways to measure the return on investment for email campaigns meant to drive website traffic is by looking at the click through rate for your marketing emails.  This shows you how many users are clicking on links in your emails that lead to certain pages on your website.  You can measure the click through rate, or CTR, by dividing the number of clicks by the number of emails that have been delivered. However, since the CTR compares the click rate to the number of emails sent, sometimes this rate will be influenced by the time of day that the email was sent or a subject line that was not quite successful.

If you want an even better idea of how effective your email content is at driving these clicks, you can also measure the click-to-open rate.  The click-to-open rate is measured by taking the number of clicks and dividing this number by the number of emails that have been opened.  The content of your marketing emails is often the primary factor influencing your customers to click on your links, and the click-to-open rate is much more indicative of how engaging your actual email content is.  This can help improve the accuracy of your ROI measurements when it comes to driving traffic back to your website.

“Increased brand awareness” is another benefit that Email Marketing has to offer, marketing emails work to foster positive and impactful relationships with your leads over a longer period of time.  This helps you establish a relationship, build trust, and influence more conversions over time.

It certainly has a potential outcome of an effective email marketing campaign.  However, it’s important that you are able to measure just how important this awareness is when it comes to generating email marketing ROI.  In order to effectively measure just how effective your campaigns are at generating brand awareness and to tie this back to return on investment, you’ll need to first define what exactly awareness means to you.

Are you trying to make sure that leads are aware of your brand?  Or are you trying to make them aware of some certain attribute that differentiates your brand from others?  The way that you define awareness will not only impact your strategy for achieving your brand awareness goals but also the metrics that you will use to measure campaign ROI.

Another metric that can help you better measure brand awareness is external links back to your site. Link building is an important part of your search engine optimization (SEO) strategy, but it also helps you better understand how aware others are of your brand.  Look at where your external links are coming from, and see how many of these links may be coming from those who have received email communications from you.

Take Advantage of Email Marketing ROI

Now that you know some of the ways that email marketing can provide a return on your marketing investment, it’s easy to see why so many companies continue to develop and implement effective email marketing strategies. Looking at the different ways that this digital marketing tactic can provide value helps you better understand how you can use email marketing to grow your small business.

Please do not hesitate to reach out to us if you think we could assist you in your digital marketing endeavor. And one more “please”…:

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You are trying to choose an email marketing platform, and you keep landing on the same two names: Mailchimp and Constant Contact. Both are huge. Both have been around forever. Both have armies of fans online. And every comparison article you read seems to be quietly trying to sell you one of them. So let me do something different here — starting with the most important disclosure I can make. Full Disclosure Before You Read Another Word I am a Certified Constant Contact Business Partner . That is not a marketing label — it is a designation that requires me to pass a 50-question recertification exam every year on the platform’s latest features and updates, including any new tools they add. If I do not pass, I lose certain privileges. So yes, I have a professional relationship with Constant Contact, and yes, that relationship is earned and renewed annually, not free. I also have not personally used Mailchimp. What I know about Mailchimp comes from people who use it, from clients who have shared their experiences, and from Mailchimp’s own publicly published pricing pages and feature lists. I am telling you this up front because most comparison articles fake firsthand experience with both products. I would rather you know exactly where I sit and exactly what kind of source I am, so you can weigh everything that follows accordingly. Now, let us get into it. The Honest Headline: Both Platforms Are Real, and One of Them Has Been Quietly Changing Let me give you the fair version up front. Mailchimp is a real platform with real strengths. It is well-known, the interface is polished, the brand is famous, and at the very entry level, it is competitive on sticker price. Constant Contact is also a real platform with real strengths. It has been around since 1995, it focuses heavily on small business users, and the support model is genuinely different from most of the industry. Either one can work. The honest question is not “which one is better.” It is “which one is built for the kind of small business owner you actually are, in 2026?” To answer that, you have to look past the homepages and at what is actually happening with each platform. Where Mailchimp Has Been Headed (And Why It Matters) There is a story in Mailchimp’s pricing history that most comparison articles will not tell you, but it is the most important context I can give you. In 2021, Mailchimp was acquired by Intuit — the company behind QuickBooks and TurboTax — for $12 billion. Since that acquisition, here is what has happened publicly to Mailchimp’s pricing and free tier, by year: • In 2022, the free plan allowed up to 2,000 contacts. • By 2023, the free plan was reduced to 500 contacts. • As of 2026, the free plan caps at 250 contacts and 500 sends per month. • Paid plan prices have increased roughly 20–30% between 2022 and 2024. • Legacy account holders received an additional 11–13% increase in April 2026. That is an 87.5% reduction in the free plan in four years, plus paid increases on top. None of that is opinion — it is documented in Mailchimp’s own published pricing changes over time. The takeaway is not “Mailchimp is bad.” The takeaway is that Mailchimp’s business has been steadily moving upmarket since 2021 . They are increasingly built for larger enterprise customers, and the small business owner — you — is no longer the audience they are optimizing for. That is a fair observation about a company’s direction. And it is worth knowing before you sign up for a platform you plan to grow with. Sticker Price vs. Real Price: The Honest Money Comparison Here is where comparison articles usually get sneaky. They compare the lowest possible price of one platform to a higher tier of the other, and pretend that is apples to apples. Let me give it to you straight. At the entry level (500 contacts), the two are nearly identical on sticker price: • Mailchimp Essentials: about $13 per month • Constant Contact Lite: about $12 per month A dollar a month apart. Anyone telling you Constant Contact is wildly cheaper at this tier is not being straight with you. They are essentially the same starting price. The real difference shows up when you ask: “What am I actually getting for that dollar?” This is where the platforms diverge in ways that matter — and where the sticker price stops being the real price. Support: The Difference People Underestimate Until They Need It If there is one area where these two platforms are not even close, it is here. And this is the part where, from talking to Mailchimp users over the years, I have seen the most genuine frustration. Mailchimp: email support, often slow Mailchimp’s lower tiers do not include live phone support. When something goes wrong — your email did not send, your list will not import, your automation is misfiring, the deadline is today — your option is to email their support team and wait. People I know who use Mailchimp have told me that wait times can run up to three days before they hear back. Mailchimp does offer 24/7 chat and email support on paid plans, and faster priority support on the highest tier. But phone-based human assistance is not part of the standard small-business experience. The pattern I have heard from Mailchimp users, almost universally, is this: they have learned to find workarounds for problems rather than getting them solved. That is a real skill. It is also a tax — a hidden one paid in your time, your stress, and your missed deadlines. Constant Contact: free live phone support, six days a week Constant Contact includes free phone support six days a week on every paid plan. You can call as many times as you need, at no extra charge. A real human picks up, listens to your problem, and helps you fix it. That is genuinely unusual in this industry. Most platforms have offloaded customer support to chatbots and articles. Constant Contact has kept the phones open. And one more thing about support, if you go this route: as a Certified Constant Contact Business Partner, you can also call me for free. As many times as you need. No retainer, no clock running. That is just what I do. If you are a small business owner who handles a hundred things at once, the difference between “wait three days for an email reply” and “dial a number and get a person” is not a small detail. It is the difference between marketing that runs and marketing that stalls. Three Hidden Cost Patterns to Watch For Beyond sticker price, here are three ways the real bill can be higher than the marketing page suggests — things every small business owner deserves to know before committing. 1. You may pay for contacts who do not want your emails On Mailchimp, your bill is based on your total contact count — which includes unsubscribed contacts still sitting in your account. In other words, you can pay every month for people who have already told you they do not want to hear from you. That has caught many small business owners off guard, and according to independent pricing analyses, this single quirk can inflate actual bills by 20–40% above what the pricing page advertises. Constant Contact handles this differently. When a contact unsubscribes, the platform actively recommends removing them from your list so you stop paying for them. It is also one of the first things I tell my clients to do, because there is a bigger reason beyond billing: keeping unsubscribers on your list quietly hurts your deliverability. Email providers like Gmail and Outlook watch how recipients engage with your mail. A clean, engaged list lands in inboxes. A bloated list with disengaged contacts gets pushed to spam. So, removing unsubscribes saves you money and helps your future emails actually reach the people who want them. That is the kind of small detail you only learn from someone who works inside the platform every day. 2. The free plan is more limited than it looks Mailchimp’s free plan caps at 250 contacts and 500 monthly sends, with Mailchimp branding on every email and no multi-step automation. For a real small business trying to actually grow, that is more of a sampler than a usable plan. It is fine to learn on. It is not a place to run a business from. Constant Contact does not offer a forever-free plan. What it offers instead is a 30-day free trial with no credit card required , where you can load up to 100 contacts and test all of the features at full strength. Different model: trial then commit, versus stay-free-but-stuck-small. Which is better depends on what you actually want. 3. Add-on features stack up Both platforms charge extra for some features (text message marketing, advanced previews, transactional emails). That is normal. But before you commit to either, read the fine print and ask yourself which add-ons you will actually need so the comparison is honest. A Quick Side-by-Side, the Honest Way Pricing at 500 contacts: • Mailchimp Essentials: about $13/month • Constant Contact Lite: about $12/month — nearly identical Free option: • Mailchimp: forever-free at 250 contacts with branding and limited features • Constant Contact: 30-day free trial with full features, no credit card required, up to 100 contacts Phone support: • Mailchimp: not standard — email and chat, with potential multi-day waits • Constant Contact: free phone support six days a week on every paid plan Email send limits: • Mailchimp: tied to contact tier • Constant Contact: no daily send cap (though just because you can send daily does not mean you should — your subscribers will tire of it fast) Contact billing on unsubscribers: • Mailchimp: bills you based on total contacts, including unsubscribers still in your account • Constant Contact: actively recommends removing unsubscribed contacts, so you do not pay for people who no longer want your emails — and your deliverability improves as a bonus Direction of the business: • Mailchimp: moving upmarket since the 2021 Intuit acquisition • Constant Contact: still small-business-focused since 1995 So Which One Is Right for You? Here is the honest answer, the kind I would give a friend over coffee: Mailchimp might be fine for you if… • You are comfortable with technology and prefer figuring things out on your own. • You are okay waiting on email-based support when something breaks. • You have a tiny contact list and just want to play with the basics for free. • You do not mind paying for unsubscribed contacts as your list grows. Constant Contact is probably better for you if… • You want to call a real human when you have a question — and you do not want to pay extra for that privilege. • You value time saved more than $1 a month saved. • You want a platform that has stayed focused on small businesses since 1995. • You like the idea of being able to call your Certified Business Partner directly when you are stuck. Most of the small business owners I work with in Central Florida fit the second list. If you are honest with yourself about how much time you actually have to troubleshoot a platform versus how much you want to spend running your business, you probably fit the second list, too. So, Where Does This Leave You? Here is the honest pattern I have seen over and over with the small business owners I talk to in Central Florida. The decision is rarely really about Mailchimp versus Constant Contact. It is about a deeper question: Do you have the time and energy to run email marketing yourself — troubleshoot a platform, write the campaigns, manage the list, learn the analytics — or would you rather have someone handle it for you while you focus on running your business? Both answers are legitimate. Here is what each one looks like . If you would rather have it handled for you This is what most small business owners I work with ultimately choose, once they do the honest math on what their time is worth. 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If you would rather run it yourself Some small business owners have the time and the interest to handle their own email marketing. If that is you, do not let anyone talk you out of it. The DIY path can work, especially if you start with the right platform and use the support it offers. You can start your 30-day free Constant Contact trial here — no credit card required, up to 100 contacts, full features. As a Certified Constant Contact Business Partner, I earn a commission if you sign up through that link, which is the disclosure I made at the top of this article. Whether or not you ever hire me, you can call me for free if you get stuck along the way. That offer is open to anyone who signs up through that link. The worst move is staying stuck because you cannot decide. Either path — hiring help or starting yourself — beats doing nothing. The trick is starting.
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