Verified Mathematical Model & Formulation
Opens = List Size × Open Rate % Clicks = Opens × Click-to-Open Rate (CTOR) % Orders = Clicks × Conversion Rate % Revenue = Orders × Average Order Value (AOV) ROI % = [(Revenue - Campaign Cost) / Campaign Cost] × 100
Models the step-by-step conversion funnel from initial inbox deliverability to confirmed transaction revenue and compares against software/copywriting costs.
Configurable Parameters & Standard Units
- Email Recipients / List Size: (Default: 25000 count)
- Email Open Rate (%): (Default: 22.5 percent)
- Click-to-Open Rate (CTOR %): (Default: 10.5 percent)
- Site E-Commerce Conversion Rate (%): (Default: 3.2 percent)
- Average Order Value (AOV $): (Default: 75 usd)
- Total Campaign Cost ($): (Default: 350 usd)
Standard Worked Example & Practical Verification
Scenario: Sending to 50,000 subscribers with a 24% open rate, 12% CTOR, 3.5% site conversion rate, and $85 AOV with $600 campaign production cost.
Practical Takeaway: Email marketing consistently yields among the highest ROI of any digital acquisition channel.
Frequently Asked Questions
What is a typical email marketing ROI?
Industry research by the Data & Marketing Association (DMA) shows email marketing delivers an average return of $36 to $42 for every $1 spent.
What is the difference between CTR and CTOR?
CTR (Click-Through Rate) is clicks divided by total delivered emails. CTOR (Click-to-Open Rate) is clicks divided only by the people who opened the email, measuring content engagement.