Why is my conversion so low as a share of the list?

Because the three rates multiply. Each is respectable on its own and the product is under a percent, which is the normal shape of email.

Businessmarketing

Email Marketing ROI Calculator

Email campaign returns through the full funnel. Three rates multiply, so respectable-sounding figures at each stage compound into well under one percent of the list ordering.

Also called: email campaign roi, newsletter roi.

Return on investment

2x return: ₹69,984 of revenue from 35,000 of cost, a profit of ₹34,984. 39 orders from a list of 45,000, which is 0.09% of it.

Revenue

₹69,984

Net profit

₹34,984

Opens

10,800

Clicks

1,296

Orders

Share of the list that ordered

0.09%

Revenue per subscriber

₹2

How this is calculated

Method and background

How this is calculated

Opens, clicks and conversions each cut the audience. A 24 percent open rate, 12 percent click rate and 3 percent conversion leaves under a tenth of a percent of the list ordering, which is normal and worth internalising before setting a target. Revenue per subscriber is the number to track across campaigns, since it survives list growth in a way total revenue does not.

each stage multiplies, which is why the final conversion is far smaller than any single rate suggests

N: List size

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a 45,000 list

List size: 45,000
Open rate: 24%
Click rate of those who open: 12%
Conversion rate of clicks: 3%
Average order value: ₹1,800
Campaign cost: ₹35,000

Return on investment2

Each rate applied in turn

Open this example

everyone converting is the ceiling

List size: 45,000
Open rate: 100%
Click rate of those who open: 100%
Conversion rate of clicks: 100%
Average order value: ₹1,800
Campaign cost: ₹35,000

Return on investment2,314.29

boundary

Open this example

Method and limits

What it assumes

Rates apply to the full list, ignoring bounces and unsubscribes.

What it deliberately does not model

Open rates have been unreliable since mail clients began prefetching images.
It ignores the cost of list decay and the long-term value of a subscriber.

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Frequently asked questions

Why is my conversion so low as a share of the list?: Because the three rates multiply. Each is respectable on its own and the product is under a percent, which is the normal shape of email.