February 17, 2025
Glossary
| Term | Definition |
|---|---|
| ROI (Return on Investment) | A measure of the profitability of an investment, calculated by comparing revenue to cost. |
| Welcome Series | A sequence of emails sent automatically to new subscribers to introduce the brand and encourage a first purchase. |
| Segmentation | Dividing your email list based on customer data like behavior, demographics, or engagement. |
| Abandoned Cart Email | A message sent to users who add items to their cart but leave without completing a purchase. |
| UTM Tracking | A method to track the effectiveness of campaigns by adding parameters to URLs. |
| Sender Reputation | How email service providers view the credibility of your domain based on your email sending history. |
Table of contents
Introduction
Email marketing is one of the highest-performing tools available to eCommerce brands. Yet, most marketers struggle to understand how to track return on investment (ROI), let alone improve it. In a digital landscape where paid ads are getting more expensive, email remains an efficient, owned channel with unmatched scalability.
This guide will show you exactly how to calculate, analyze, and increase your email marketing ROI — using best practices, strategic flows, and data-backed tactics.
What Is Email Marketing ROI?
Email ROI answers a key question: Are your email campaigns generating enough revenue to justify the investment?
With email producing as much as $45 for every $1 spent in retail and eCommerce, it’s essential to measure how much you’re earning per send.
ROI Formula:
ROI=(Revenue−CostCost)×100\text{ROI} = \left(\frac{\text{Revenue} – \text{Cost}}{\text{Cost}}\right) \times 100
Example:
- Revenue from email campaign: $10,000
- Cost (platform, design, list management): $2,000
- ROI = (10,000 – 2,000) / 2,000 × 100 = 400%
How to Measure Email ROI
| Step | Description |
|---|---|
| 1. Set Clear Campaign Goals | Are you promoting a sale, re-engaging lapsed customers, or building awareness? |
| 2. Track Performance with UTM Tags | Use tools like Google Analytics to attribute conversions and revenue back to emails. |
| 3. Analyze Engagement Metrics | Look beyond open rates. Prioritize clicks, conversions, and revenue per recipient. |
Recommended Tools:
- Klaviyo Reports Dashboard
- Google Analytics with UTM tracking
- ROI Calculators (Omnisend, Litmus)
How to Increase Email ROI
1. Warm Up Your Email List
Building a positive sender reputation improves deliverability, meaning more emails land in inboxes — not spam folders.
| Step | Action |
|---|---|
| Start Small | Email only your most engaged subscribers (last 30 days). |
| Build Gradually | Increase sending volume over 2–4 weeks. |
| Maintain Hygiene | Remove inactive users and hard bounces regularly. |
2. Create a High-Converting Welcome Series
The first few emails subscribers receive from your brand are critical. Done well, welcome flows build trust and accelerate conversion.
Email Series Example:
| Timing | Content | |
|---|---|---|
| 1 | Immediately | Brand intro, discount code, top categories |
| 2 | 24 hours | Brand story, social proof, top-sellers |
| 3 | 48 hours | Personal note, offer reminder, CTA |
Benchmarks:
- Open Rate: 60–80%
- CTR: 10–15%
- Conversion Rate: 5–10%
3. Automate Abandoned Cart Flows
70% of online shopping carts are abandoned. A three-part abandoned cart sequence can recover up to 15% of that revenue.
Flow Setup:
| Timing | Focus | |
|---|---|---|
| 1 | 4 hours post-abandonment | Reminder + product image |
| 2 | 24 hours | Incentive (e.g., free shipping or 10% off) |
| 3 | 48–72 hours | Scarcity (“Low stock”) or urgency |
Use dynamic content blocks to personalize the email with the exact items left in the cart.
4. Segment and Personalize
Segmentation allows you to tailor your content to different types of customers based on:
- Purchase frequency
- Browsing behavior
- Engagement level
High-Impact Segments:
- VIP Shoppers: High LTV, frequent purchases
- Cold Leads: Haven’t engaged in 60+ days
- Product Category Interest: Based on pageviews or add-to-carts
Personalized emails can generate up to 6x higher transaction rates.
5. Use Data to Refine Campaigns
Constant improvement requires you to test and iterate.
What to Test:
- Subject lines
- Send time
- CTA placement
- Offer structure
- Email length
Track:
- Revenue per Email Sent
- Click-to-Open Rate (CTOR)
- Bounce and unsubscribe rates
Key Email ROI Benchmarks (2024)
| Metric | Average Value |
|---|---|
| ROI | 3,600% (36:1 return) |
| Average CTR | 2.3–3.5% |
| Conversion Rate | 1.8–5.2% |
| Revenue per Email | $0.13–$0.42 |
| Open Rate (approximate) | 25–30% (less reliable due to privacy changes) |
Visual & Table Suggestions to Improve SEO and Reader Experience
- ROI Calculator Graphic: Visualize the ROI formula in action
- Flowchart: Welcome Series Timeline
- Table: Segment Examples and Strategies
- Side-by-side: Abandoned Cart Email vs. Recovered Sale
- Data Table: Benchmarks across industries (Retail, Beauty, Food & Beverage)
Frequently Asked Questions
1. What’s a good ROI for email marketing?
A strong email ROI is typically 3,000% or higher for eCommerce (e.g., $30 returned for every $1 spent). Top-performing brands often exceed 4,000%.
2. How often should I clean my email list?
Every 30–90 days. Suppress or remove inactive contacts to maintain deliverability and increase engagement rates.
3. Does email design affect ROI?
Yes. Mobile-optimized layouts, clear CTAs, and visual hierarchy improve clicks and conversions.
4. What are the most important email KPIs to track?
Click-through rate, revenue per recipient, conversion rate, and unsubscribe rate are top ROI indicators.
5. Should I send more emails to increase ROI?
Not always. It’s better to send fewer, high-quality, relevant emails than to increase frequency without segmentation.
6. Can SMS be included in email ROI?
Only if you’re measuring cross-channel flows. Otherwise, track SMS separately and compare returns on both channels.
Final Thoughts
ROI isn’t just a number—it’s a signal of your strategy’s effectiveness. Email is still the most profitable marketing channel when done right, and your ROI will grow when you:
- Invest in deliverability
- Build meaningful flows
- Test relentlessly
- Prioritize segmentation
At Blossom Ecom, we help brands design data-driven email strategies that maximize revenue and retention. Ready to unlock your ROI potential? Let’s talk.
Need help implementing this?
Let us take the hassle of managing your email marketing channel off your hands. Book a strategy call with our team today and see how we can scale your revenue, customer retention, and lifetime value with tailored strategies. Click here to get started.
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13 Simple Design Hacks Using Klaviyo Email Marketing & Shopify
<p>Glossary of Key Terms Term Definition Klaviyo Campaigns One-time promotional emails sent to a list or segment in Klaviyo. CTA (Call to Action) A prompt that directs the reader to take an action, such as clicking a button or link. Dynamic Coupon A unique discount code generated for each subscriber via Klaviyo. Personalization Token Dynamic […]</p>
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5 Simple Tactics to Grow Your Klaviyo SMS List Without Overcomplicating Things
<p>Glossary of SMS Marketing Terms Term Definition Klaviyo SMS A built-in SMS marketing feature within Klaviyo that allows brands to send targeted text messages and integrate them with email campaigns. SMS Consent Legal opt-in confirmation from a user allowing the brand to send promotional text messages. Landing Page A dedicated standalone web page created for […]</p>
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Why Klaviyo SMS Crushes Other SMS Providers (And How Ignoring It Costs You Revenue)
<p>Glossary of SMS & Klaviyo Terms Term Definition Klaviyo SMS A built-in SMS marketing feature in Klaviyo that allows direct messaging, tracking, and automation using first-party data. Third-Party SMS Providers External platforms (e.g., Postscript, SMSBump) that send texts but don’t integrate deeply with Klaviyo data. Cookie Tracking When a user clicks an email or SMS, […]</p>
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10 Klaviyo Strategies That Drove Over $50 Million for Our Clients
<p>Glossary of Terms Term Definition Klaviyo An email and SMS marketing platform designed for eCommerce brands to automate, personalize, and analyze customer communication. Automation Flow A sequence of pre-set messages triggered by specific user actions like purchases, form fills, or cart abandons. Segmentation The act of dividing your email/SMS list into groups based on behavior, […]</p>
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Email Marketing Management for eCommerce: A Real Guide
<p>Glossary of Key Email Marketing Terms Term Definition Email Marketing Management The process of planning, executing, analyzing, and optimizing email campaigns and automations to meet business objectives. Campaign A one-time email blast sent to a list or segment, typically tied to a specific event or offer. Automation (Flow) A pre-configured series of emails triggered by […]</p>
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Email Marketing 101: How to Create Emails That Convert
<p>Glossary of Key Email Marketing Terms Term Definition CTA (Call-to-Action) A button or link prompting users to take a specific action like “Buy Now” or “Read More.” Click-Through Rate (CTR) The percentage of email recipients who clicked on one or more links in your email. Open Rate The percentage of recipients who opened your email. […]</p>
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Shopify Email Marketing: Campaigns + Automations That Actually Grow Sales
<p>Glossary of Key Email Marketing Terms for Shopify Merchants Why Shopify Email Marketing is a Non-Negotiable in 2025 Email isn’t dead—it’s your most profitable channel. It’s not just for pushing out promos; it’s your always-on sales engine. Here’s why email is mandatory: Metric Performance ROI $36 for every $1 spent Open Rates (Transactional) 50–80% Cart […]</p>
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7 eCommerce Trends to Watch in 2025
<p>Glossary Term Definition M-commerce Mobile commerce, or shopping via smartphones and tablets. AI (Artificial Intelligence) Technology enabling automated learning and decision-making. Social Commerce Shopping directly on social media platforms like Instagram or TikTok. Personalization Tailoring content or offers based on individual user data or behavior. Visual Commerce Using interactive visuals, AR, or UGC to improve […]</p>
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The Complete Guide to Winning at B2B eCommerce in 2025
<p>Glossary Term Definition AOV (Average Order Value) The average dollar amount spent per order. CLV (Customer Lifetime Value) The projected revenue from a customer over the entire relationship. ERP (Enterprise Resource Planning) Software for managing daily business operations. CRM (Customer Relationship Management) Software used to manage customer data and relationships. Net Terms Payment terms that […]</p>
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Answering YOUR Email Marketing Questions
<p>Glossary Term Definition GDPR A regulation protecting personal data and privacy in the EU. CAN-SPAM A US law governing commercial email and ensuring recipients can opt out. Open Rate Percentage of recipients who open your email. CTR (Click-Through Rate) Percentage of people who click a link inside the email. A/B Testing Sending two versions of […]</p>
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What Is Email Marketing and Why Does It Work So Well?
<p>Glossary Term Definition CTR (Click-Through Rate) Percentage of recipients who clicked a link in your email. ESP (Email Service Provider) A platform for creating, sending, and managing email campaigns. Segmentation Dividing your email list into groups based on behavior or demographics. Personalization Tailoring content to individual subscribers using their data. Automation Triggered emails sent based […]</p>
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5 Steps Toward a Successful Email Marketing Campaign
<p>Glossary Term Definition CTR (Click-Through Rate) The percentage of email recipients who clicked on a link in the email. A/B Testing Comparing two versions of an email to see which performs better. ESP (Email Service Provider) A platform like Klaviyo or Mailchimp that helps manage email campaigns. Responsive Design An email layout that adapts to […]</p>
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8 Proven Strategies to Build Your Email Marketing Lists in 2025
<p>Glossary Term Definition ESP (Email Service Provider) A platform used to manage, send, and track email marketing campaigns. Gated Content Valuable digital content made accessible only after providing an email address. UGC (User-Generated Content) Content created and shared by users that promotes a brand organically. CTA (Call-to-Action) A prompt in marketing encouraging a specific action, […]</p>
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How to Supercharge Your Social Media with Email Marketing
<p>Glossary Term Definition Email Campaign A structured email message sent to a list with a specific goal. CTA (Call-to-Action) A prompt encouraging recipients to take an action (e.g., click, follow). UGC (User-Generated Content) Content created by customers and shared on social media. Referral Program A system offering rewards for customers who refer others to a […]</p>
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The No-B.S. Guide to Ecommerce Email Marketing
<p>Glossary Term Definition ROI (Return on Investment) The profit gained from email campaigns relative to cost. CTA (Call-to-Action) A prompt in an email encouraging users to take a specific action. Segmentation Dividing your email list into groups based on behaviors or attributes. Flows Automated emails triggered by customer actions or milestones. Campaigns One-off email blasts […]</p>
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How Email Can Power Your Customer Loyalty
<p>Glossary Term Definition First-Party Data Data collected directly from customer interactions with your brand. Zero-Party Data Information that customers willingly share, such as quiz results or preferences. Dynamic Content Personalized content that adapts based on user behavior or profile. Milestone Campaign Automated emails triggered by key customer events or achievements. Email Flow A series of […]</p>
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How Much Does Email Marketing Cost in 2025?
<p>Glossary Introduction Email marketing isn’t just an optional add-on to your digital strategy—it’s foundational. But the question every eCommerce operator has: How much does it really cost to run effective email campaigns? The answer? It depends. In this guide, we’ll unpack every factor influencing your email marketing costs, from platform fees to creative execution. We’ll […]</p>
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Email Marketing 101: How to Create Emails That Convert
<p>Glossary of Key Email Marketing Terms Term Definition CTA (Call-to-Action) A button or link prompting users to take a specific action like “Buy Now” or “Read More.” Click-Through Rate (CTR) The percentage of email recipients who clicked on one or more links in your email. Open Rate The percentage of recipients who opened your email. […]</p>
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Create a Winning Welcome Email Strategy
<p>Your Welcome Email Cheat Sheet ✅️ Welcome Email Strategy: A series of automated emails sent to new subscribers post-signup. ✅️ Open Rate: The percentage of recipients who opened your email. ✅️ CTR (Click-Through Rate): The percentage of recipients who clicked a link inside your email. ✅️ CTA (Call to Action): A direct instruction (button or […]</p>
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How to Revitalize Your eCommerce Sales in the New Year
<p>Glossary Introduction January isn’t just about resolutions—it’s a strategic window for ecommerce growth. Customers are energized by a fresh start and looking for brands that align with their goals. By leveraging New Year momentum, brands can attract, engage, and retain more customers. This guide breaks down five high-impact strategies (plus a bonus optimization tip) to […]</p>
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Customer Survey Emails: Finding the REAL Reason People Aren’t Buying
<p>📃 Glossary of Terms Term Definition Customer Survey Email A message sent to customers requesting feedback via a questionnaire, often linked to a form. Response Rate The percentage of recipients who complete the survey out of the total who received the email. Buyer Persona A fictional representation of your ideal customer based on data and […]</p>
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E-commerce Email Marketing: Dos, Don’ts, and Essential Tips for CBD Brands
<p>E-commerce Email Marketing has become a crucial tool for businesses looking to engage customers, drive conversions, and build lasting relationships with their audience. Quick Reference Guide ✅ Email FlowA series of automated emails triggered by specific user actions (e.g., signing up, purchasing, abandoning cart). ✅ CTR (Click-Through Rate)The percentage of recipients who clicked on at […]</p>
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The Ultimate Crash Course Email Marketing for E-commerce Store
<p>Email Marketing for E-commerce stores is one of the best ways to grow your business these days. 🔍 Quick Reference Guide ✅ Email FlowAn automated sequence of emails triggered by customer actions (e.g., signup, purchase, cart abandonment). ✅ Trigger-Based EmailAn email sent based on a specific event, like a user abandoning a cart or signing […]</p>
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3 Retention Metrics You’re Measuring Incorrectly + Strategies to Fix Them
<p>Tracking these 3 retention metrics will provide valuable insights into customer loyalty and help you refine strategies to boost long-term business growth. Glossary of Terms Term Definition RPR (Repeat Purchase Rate) The percentage of customers who make a second purchase after their first. CLV / LTV (Customer Lifetime Value) The total gross margin (not revenue) […]</p>
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How to Measure the Success of Your Email Marketing Strategy
<p>An effective email marketing strategy is essential for growing your brand, increasing engagement, and driving conversions through personalized and targeted campaigns. Glossary of Terms Term Definition CRM Customer Relationship Management – the system and strategy for managing customer interactions and data. CLV Customer Lifetime Value – the total revenue a customer generates over their relationship […]</p>
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How to Run A/B Tests in Email Marketing
<p>A/B tests in email marketing allow you to experiment with different elements to refine your campaigns and achieve higher engagement and better results. Glossary of Terms (Quick Reference) Term Definition A/B Testing Comparing two email versions to measure performance of a single variable Conversion Rate (CVR) % of users who take a desired action (e.g. […]</p>
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9 Pillars of Email Marketing Success
<p>Mastering the 9 pillars of email marketing is crucial to running successful campaigns that drive engagement, conversions, and lasting customer relationships. Glossary of Email Marketing Term Term Definition ESP Email Service Provider (like Klaviyo, Mailchimp, or ActiveCampaign) Flows Automated email sequences triggered by behavior (e.g., sign-up, purchase) AOV Average Order Value CLV Customer Lifetime Value […]</p>
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Rethink Customer Loyalty: 7 game-changing strategies to retain customers
<p>Implementing 7 game-changing strategies to retain customers can foster loyalty and build long-term relationships that benefit your business. 🔍 Glossary of Terms Term Simple Definition Customer Retention Keeping customers coming back to buy again instead of losing them. LTV (Lifetime Value) How much money a customer is expected to spend with your brand over time. […]</p>
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Good Email Marketer vs Bad Email Marketer
<p>Understanding the key differences between a good email marketer and a bad one can help refine your strategies and achieve higher engagement and conversions. 🔍 Glossary of Terms Term Definition CAC Customer Acquisition Cost: What it costs to acquire one paying customer CLV / LTV Customer Lifetime Value: Revenue expected from one customer over their […]</p>
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What is MMS and Why You Should Start Now
<p>Glossary: Key MMS Marketing Terms Term Definition MMS (Multimedia Messaging Service) A messaging protocol that supports the delivery of images, videos, audio, and rich text via mobile SMS (Short Message Service) Traditional text messages limited to 160 characters and no media support CTIA The U.S. wireless industry’s trade group, regulating best practices for SMS/MMS marketing […]</p>
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Why SMS is the Marketing Channel of the Future
<p>SMS marketing is quickly becoming the go-to channel for businesses due to its high engagement rates, instant delivery, and direct connection with customers. Quick Glossary: SMS Marketing Terms You Need to Know Term Definition SMS Short Message Service – 160-character text-based messages sent to mobile phones MMS Multimedia Messaging Service – allows sending images, videos, […]</p>
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EDM Marketing vs Email Marketing: What’s the Difference?
<p>EDM Marketing Vs Email Marketing are often used interchangeably, but they have distinct differences that can impact your marketing strategy. Quick Reference: Key Terms & Definitions Term Definition EDM Marketing Electronic Direct Mail – a campaign-based strategy built around personalized, segmented, and behavior-driven email content Email Marketing A broader communication strategy using email to deliver […]</p>
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Case Study: How Smart Klaviyo Email Segmentation Boosted Conversions by 323%
<p>Klaviyo email segmentation helps you send tailored campaigns that resonate with customers and significantly boost engagement and conversions. Key Concepts to Know Term What It Means Segmentation Breaking your list into smaller groups based on behavior, lifecycle, or demographics Deliverability Your ability to land in the inbox—not spam Modular Email Design Template system using reusable, […]</p>
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6 Marketing Strategies to Future-Proof Your Marketing
<p>These 6 marketing strategies will help you boost business growth, enhance visibility, and drive customer engagement. Foundational Terms Term Definition Zero-Party Data Data explicitly shared by customers (e.g. quiz answers, preferences) RFM Modeling Scoring model based on Recency, Frequency, and Monetary value of purchases First-Party Data Behavioral data collected directly (e.g. site visits, email opens) […]</p>
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Mastering Klaviyo Email Design: 11 Tips That Actually Work
<p>Klaviyo email design allows you to create visually stunning campaigns that boost engagement and improve conversion rates. 🔍 Understanding the Terms ✅ KlaviyoA leading email and SMS marketing platform built for eCommerce businesses (especially Shopify, WooCommerce, and BigCommerce). ✅ CTA (Call-to-Action)A button or link that directs a user to take an action (e.g., “Buy Now,” […]</p>
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How to Customize Shopify Email Templates Quickly and Efficiently
<p>Glossary of Email Design & Shopify Terms Term Definition Liquid Shopify’s open-source template language used to pull dynamic data into emails (e.g., {{ customer.first_name }}). MJML (Mailjet Markup Language) A framework that simplifies the creation of responsive, cross-client HTML emails. React Email A modern way to code dynamic, component-based emails using React syntax. Email Client […]</p>
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The Next Frontier of E-Commerce: What’s Coming and How to Prepare
<p>The frontier of e-commerce is marked by innovative technologies and trends that are revolutionizing the future of online retail. Glossary of Terms Term Definition AI (Artificial Intelligence) Computer systems that mimic human intelligence to automate decision-making and improve personalization. Machine Learning A subset of AI where systems learn from data patterns to improve future performance—used […]</p>
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Three Steps to Increasing Your Marketing Email Open Rates
<p>Glossary of Email Marketing Terms Term Definition Open Rate The percentage of recipients who open your email. Calculated by (unique opens ÷ total delivered emails) × 100. Sender Reputation A score assigned by inbox providers (like Gmail) based on your sending habits, list health, and engagement. Segmentation Breaking your email list into sub-groups based on […]</p>
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Best Practices for Optimizing Email Flows with Klaviyo
<p>Optimizing email flows with Klaviyo helps streamline automation, increase engagement, and improve conversions through tailored email strategies. Glossary of Terms Term Definition Email Flow A series of automated emails triggered by customer behavior (e.g. abandoned cart, post-purchase, signup). Segmentation Grouping your subscribers based on shared traits or actions to send more targeted messages. Dynamic Content […]</p>
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Email Marketing ROI: The Most Reliable Revenue Engine You’re Not Fully Using
<p>Quick Reference Guide Email Marketing ROI ✅ Email FlowAn automated sequence triggered by a customer action (e.g., signup, purchase, abandonment). ✅ CTR (Click-Through Rate)The percentage of recipients who click a link in your email. ✅ Open RatePercentage of recipients who opened your email. ✅ SegmentationDividing your list into smaller groups based on behavior, demographics, or […]</p>
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Conquering the Gmail Inbox: How to Keep Your Emails Out of the Junk Folder
<p>Conquering the Gmail Inbox is key to boosting productivity with effective email organization, sorting, and management techniques. Understanding the Terms ✅ Email DeliverabilityThe ability of an email to land in a subscriber’s inbox instead of the spam folder. ✅ SPF (Sender Policy Framework)A DNS record that verifies which servers are allowed to send email on […]</p>
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Refreshed Blog: “SMS Marketing for E-commerce: A Straightforward Guide”
<p>SMS Marketing for e-commerce is a powerful tool to engage customers instantly, increase conversions, and create personalized experiences that drive sales. 🔍 Glossary of Terms Term Definition SMS (Short Message Service) Text-only messages up to 160 characters sent to a user’s phone. MMS (Multimedia Messaging Service) Text messages that include images, videos, GIFs, or audio. […]</p>
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