Aug 10 2023
How to Determine the Return of Investment (ROI) of Email Signature Management Software and Marketing Campaigns for your Company
When considering new software solutions for your company, value is determined not just by time saved and processes automated or simplified. Upper management often wants to get down to the bottom line and understand what this new software can bring to the table in terms of return of investment. ROI is an incredibly valuable financial measurement to determine how your company will profit from this new investment. The goal is to generate more revenue than it costs, or at least recoup the investment made into the software. ROI is expressed as a percentage, and it is determined by a very specific calculation.
However, when it comes to Email Signature Management Software which incorporates marketing potential, it is tough to determine the true ROI. Does this type of software belong to the IT budget or Marketing budget? Or both? How can we accurately calculate the ROI? As AdSigner Email Signature Management incorporates interactive, trackable elements, it can be considered a digital marketing tool.
How do companies determine total revenue generated from digital marketing efforts? Common approaches include analyzing certain data such as Views, Clicks, Clickthrough rate (CTR), and using tracking mechanisms such as Conversion Tracking and CRM Management. To increase growth rate, you have to make people aware that your products and services exist. Impressions and Page Views are strong indicators of brand awareness. The more people who see your email signature marketing banners and visit your website and social media platforms, the more they get to know your brand. Driving traffic and impressions through email signatures is a far more cost effective approach than paying for search ads and social media ads.
Let’s look at some statistics and key digital marketing metrics to help us determine the true marketing value for Email Signature Management Software, and in this regard determine the potential Email Signature ROI.
Digital marketers are all too familiar with CPM and CPC. CPM (cost per mille or cost per thousand) indicates the cost of advertising for every 1.000 views or impressions. According to Statista data from Q3 2022 (https://www.statista.com/statistics/873631/social-media-advertising-cpm), average CPM on social networks is 7,47€.
CPC (cost per click) is an online advertising model used to drive traffic to websites where the advertiser pays based on the number of clicks. According to Statista data from Q3 2021 (https://www.statista.com/statistics/873639/search-advertising-cpc/), the average CPC on social networks is 2,45€, and slightly cheaper for search ads (0,92€ - 1,83€).
On average, business people typically send about 30-40 emails per day. An email sent to a known contact is likely to get opened 2x per email on average. This metric could vary. Following this logic, a user sending 40 external-facing emails with banner campaigns per day would result in 80 impressions or views. Multiplying that by the average work month of 21 days equals 1.680 impressions per month per signature.
Let’s assume Company A uses 50 email signatures with banner campaigns, and works 250 days of the year.
50 users x 40 external emails per day x 2 open rate = 4.000 impressions per day
4.000 impressions per day x 250 work days = 1.000.000 impressions per year
1.000.000 impressions ÷ 1.000 impressions = 1.000 CPM
1.000 CPM x 7,47€ CPM = 7.470€ total cost
AdSigner Subscription for 50 signatures per year = 780€
Equivalent CPM cost of 7.470€ - AdSigner Subscription cost 780€ = 6.690€ CPM marketing budget gained
Let's assume Company A has 20 email signatures with banner campaigns, and works 250 days of the year.
20 x 40 x 2 open rate = 1.600 impressions per day
1.600 impressions per day x 250 work days = 400.000 impressions
CTR of 1% = 4.000 clicks
4 000 clicks x 2,45€ CPC = 2.450€ total cost
AdSigner Subscription for 20 signatures per year = 312€
Equivalent CPC cost of 2.450€ total cost - AdSigner Subscription cost 312€ = 2.138€ CPC marketing budget gained
As you can see, with AdSigner Email Signatures you gain marketing value far higher than that of your yearly subscription fee.
Use AdSigner analytics to measure your impressions and clicks, and Google Analytics to measure your website traffic from the time you implemented your banner campaigns. Notice if there was an increase in viewing of certain pages based on the links contained in your banners. Use your Website Conversion Rate to then determine how many deals have closed due to additional marketing banners in your email signatures. In this way you will determine the true ROI of AdSigner Email Signature Software.
Not only do you gain professional email signatures for your staff members, but you gain impressions and engagement that you didn’t have to budget for.