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Welcome to the 36th issue of Magnetic Marketing. The newsletter that's still working through Thanksgiving leftovers 1 week later.

I hope you all crushed your Black Friday / Cyber Monday sales goals!

Time for me to dust off the keyboard and get back to our weekly schedule. And away... we... go!

A QUICK MESSAGE FROM THE MARKETING MILLENNIALS:

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📝 Today's Marketing Breakdown:

With everyone's mind on generating revenue this past weekend, I wanted to dedicate this issue to measuring ROI from your marketing channels.

You will never reach your full potential as a marketing team if you do not measure the performance of your campaigns correctly.

Two of the highest ROI marketing channels you'll find are Email and SMS marketing. Here's how I evaluate these channels at Beard Club:

🧲 Vendor vs. UTM Attribution:

Sure, they can be used as a directional reference, but treating them as the source of truth is a big mistake.

In my experience, Email and SMS providers will over-attribute revenue by as much as 91-125%

This is in comparison to UTM revenue attribution. (If you're unfamiliar with UTM tracking, this article explains the basics).

UTM tracking is the complete opposite of on-platform attribution in that it is the most conservative representation of how your campaigns performed — that's why I always use UTM tracking as my "source of truth" for ROI calculations.

This helps you get a better understanding of true performance which is especially helpful when measuring A/B tests.

In reality, your attributed revenue is likely falling somewhere in between what you see on Google Analytics (UTMs) vs. On Platform (e.g. Klaviyo).

For example:

• If Klaviyo shows $10,000 in revenue attributed to an email

• And Google Analytics is showing $4,500 in attributed revenue

• My best guess would be that the email campaign actually generated $5,000 - $6,000 in revenue. Not a perfect science, but it is close enough.

🧲 How to calculate ROI:

I just ran the ROI numbers on Email and SMS marketing since I joined Beard Club and I was really happy with these results.

Using UTM revenue (again, the most conservative revenue number), here's where we netted out:

It was really simple to run these calculations. The numbers you'll need are:

• Total # of campaign emails sent

• Total # of automated emails sent

• Total UTM revenue generated from campaign emails

• Total UTM revenue generated from automated emails

• Total $ amount spent on Klaviyo over the time period you're measuring

With these numbers, I would first calculate what % of total emails sent were campaigns vs. automation. Let's say that split comes out to:

• 40% automated emails

• 60% campaign emails

I would then take total Klaviyo spend and calculate spend per email type:

• If total Klaviyo spend = $10,000

• 40% automated emails = $4,000 spent on automation

• 60% automated emails = $6,000 spent on campaigns

Finally, to get ROI, I would divide UTM revenue / $ spent per email type:

• $1,000,000 automated email revenue / $4,000 spend on automation = 250x ROI

• $100,000 campaign email revenue / $6,000 spend on campaigns = 16.67x ROI

For SMS, it's the same exact calculations. Just use your SMS data.

🧲 How do I know if my ROI numbers are good?

Brace yourself for an answer you don't want to hear... it depends.

Every industry is different. Every brand is different.

If you made me commit to a number, I'd say the accepted ROI average for email marketing is $36 for every $1 spent.

There isn't a well-known SMS ROI average (as far as I know) — but in my experience — it has always been lower than email because it's more expensive to send SMS vs. Email.

E.g. At Beard Club, we spend 3x more on SMS to achieve a similar amount of revenue as email.

However, on a Revenue Per Send basis, SMS is 3.48x - 8.46x more efficient than email (i.e. it justifies the extra cost because it is more efficient at driving sales).

🪜 Next Steps To Take:

• Calculate your historical ROI for Email and SMS marketing.

• Set those numbers as your minimum benchmarks.

• Start tracking these metrics on a monthly basis.

• Pro tip: focus on adding/improving your automated Email & SMS flows. That is where you will see the highest ROI.

There you have it! 1 marketing breakdown to help grow your e-commerce business.

⭐️ Here's one other golden nugget for this week:

I shared a copywriting resource on LinkedIn the other day and it went viral so I figured I'd share it here in case you missed it.

It's excellent for finding powerful words to use in your copy. This will help you evoke more emotion from your readers: 👇

Hope this has been helpful!

If you enjoyed it, please forward it along to your marketing friends.

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See ya next Thursday,

Joe

P.S. What would be most helpful?

I'm going to be building out some email marketing products soon and would love to hear what would be most beneficial to you.

Please take two seconds to click 1 or more of the links below that fits your preference:

🧲 I want to convert more leads with email marketing

🧲 I want to retain more customers with email marketing

🧲 I want to grow my company's email marketing subscriber list

🧲 Other (shoot me a reply to this email!)