On average 20% of email goes undelivered or winds up in the spam or junk box. Using “back-of-the-napkin” math, you can quickly gauge the potential loss. For example, if you send 100,000 emails, only 80,000 of your emails are actually reaching your customers each month. If each email is worth $50 to you, then losing 20% of your audience translates into a significant loss of revenue.
To calculate true ROI, should drill down and analyze your actual revenue impact by plugging in your open, click-through and conversion rates by email stream. Add to that the money you are spending on acquisition campaigns to grow your list and resources you are using to send 20,000 emails each month that will never make it to your customer. Now multiply that by 12 months and you’ll quickly find out how much of a hit your email program is taking each year.
The good news is that you can fix this. Without spending money on acquiring new subscribers, you can effectively increase email productivity and revenue simply by increasing your email delivery rates. While you will always take steps to grow your list, at least you can be sure that your efforts and budget are not being wasted on spam filters and junk boxes.
To learn more about email deliverability, download the SendGrid Deliverability Guide: Everything You Need to Know About Delivering Email Through Your Application.