How to compare Email Marketing with CPC or PPC

If you run an online business and if you are wearing the hat of a marketing manager your key areas of concern are

  • How to get more visitors to your website
  • How to engage them better
  • How to convince them to purchase

Knowing how fickle the Indian consumer is, no one marketing solution is going to work for your online store.  You probably realize this and have spread your marketing budget across:

  • Online PR, articles, news,
  • Social media activities
  • PPC and banner ads
  • SEO and SEM
  • Email marketing
  • SMS marketing
  • Tele calling

Of the last month’s sales, what percentage do you attribute to each channel? There will not be very clear cut answers, since your visitor may have clicked your email, but may have also visited from a banner ad, you probably have sent an SMS as well, and perhaps your customer care has called your customer to find out about his abandoned cart. This obviously is a simplistic example to highlight that using all the channels to communicate is important. What is more important is that your CRM system should record this information for you to analyse later.

A simple start to your analysis process is to track visits from various channels. Take the case of email marketing.  Here is a simple example of comparison of CPC vs Email.

Email Marketing in India cpc vs email.jpg

Depending on how much you are spending on CPC this distribution could vary.

Combine this with the cost per click cost comparison between PPC and Email. You probably know the CPC from your advertising data. To find out the Email CTR cost take the total CTRs via email divided by total cost of your email software / service. This should give you an apples to apples comparison.

Now you will be in a better position to ask what to improve in your email campaign and compare costs and effectiveness of these two important channels.

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