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<Video url="https://www.youtube.com/embed/pAHHRcTC-rE?si=Uw7agHTQdU24gyRq" />

One of the key trends in modern marketing is the focus on omnichannel strategies and personalization. To enhance loyalty and retain customers, businesses are increasingly prioritizing their needs, offering targeted solutions. Communication is becoming more structured, with a growing reliance on data analytics.

Strategies aimed solely at constantly acquiring new customers are being replaced by CVM marketing—an approach focused on increasing the value of each individual customer. This strategy often proves more profitable than managing a customer database without detailed segmentation and personalization.

In this article, we will explore what customer value management is, how this strategy is implemented in the digital era, and why effective CVM requires the use of management systems.

## CVM: what it is and how it is applied in marketing

CVM is a marketing concept focused on increasing the long-term value of each customer. It involves segmenting the customer base according to their value to the business. Communication is structured to enhance the value of each segment and improve customer relationships.

The CVM (Customer Value Management) approach has been known since the second half of the 20th century but has gained popularity only recently. In the digital era, new communication channels have emerged, and the volume of customer data has increased. Marketing campaign costs across various channels have risen, and in this context, CVM marketing helps businesses find effective and cost-efficient ways to engage their audience.

### Advantages of CVM for modern marketing:

**A way to stand out among competitors.** CVM is a comprehensive approach that involves targeted customer engagement and a detailed study of their needs. Predictive data analytics is also applied to anticipate how the preferences of the target audience will evolve in the future. This approach strengthens the business’s position against competitors and provides additional advantages in the fight for customers.

**Budget optimization.** Not all communication channels or marketing efforts yield results, and it is often challenging to identify ineffective sources, especially in attribution models that consider only the last touchpoint (last click) before conversion. Customer value management involves detailed audience segmentation and an analysis of actions and channels that do not deliver results or are less effective. This helps avoid unnecessary marketing budget expenses.

**Increased customer loyalty.** Customer value management focuses on addressing the customer’s needs both in the product and in interaction methods. Loyalty technologies based on CVM adapt to each customer, improving their relationship with the company and motivating them to return.

**Revenue growth.** A targeted approach, personalization, and reduced marketing expenses contribute to increased profits.

## Metrics for CVM

To enhance customer value, it is essential to track metrics that reflect loyalty levels and generated revenue. Therefore, the following metrics are used in CVM marketing:

**Customer Lifetime Value (CLV):** This metric calculates the total revenue generated by a customer over their lifetime interaction with the company. It helps determine how valuable a customer is to the business and whether the marketing communication expenses are justified.

[**Retention Rate**](https://altcraft.com/blog/retention-rate-how-to-calculate) **(RR):** This metric indicates the percentage of users who return to the product or make repeat purchases within a specific time frame. It reflects how effective the customer retention system is.

**Average Revenue Per User (ARPU):** This metric shows the average revenue generated by a single user during a given period. It is used to forecast future profits and evaluate the effectiveness of sales-influencing channels.

**Churn Rate:** This is the percentage of customers who have stopped interacting with the company. It helps identify underperforming communication channels and unsuccessful campaigns.

**Net Promoter Score (NPS):** This is a consumer loyalty index that indicates how satisfied customers are with the company's service and products, as well as their willingness to recommend the brand to others.

## How technology is changing the approach to CVM

The first step toward the evolution of CVM was the introduction of CRM systems in the late 1980s and early 1990s. At that time, companies began consolidating customer data into a single system. With the advancement of technology in the 2000s, it became possible to track the entire customer journey and even predict their actions. Businesses came to understand that retaining existing customers is often more cost-effective than acquiring new ones. As a result, today’s forward-thinking companies focus on enhancing loyalty and deepening personalization.

Technological advancements are transforming the CVM approach. The volume of customer data, expectations for service quality, and the speed of interactions are all increasing. As a result, marketing is evolving alongside new IT tools.

## Technologies used in CVM

**Big Data and data analytics** enable deeper insights into customer behavior trends and preferences, playing a key role in creating precise offers and successful marketing strategies. Predictive analytics, in turn, provides the ability to adapt the business to future customer needs.

**Artificial intelligence and machine learning** process vast amounts of data, a task that even an entire team of marketers could not accomplish. These technologies allow businesses to respond quickly to customer actions and automatically tailor offers to their needs. For example, algorithms generate advertising messages customized for individual users based on their behavior and preferences.

**Marketing automation** simplifies repetitive and routine processes, speeds up communication, and improves customer segmentation—one of the core principles of CVM. Machines handle these processes faster and more accurately than humans. Moreover, automation reduces the likelihood of errors that could impact customer loyalty.

**Personalized campaigns** boost customer engagement and increase conversion rates compared to mass messaging. Their implementation relies on demographic and behavioral data, which digital tools can automatically collect.

<Img
img="/uploads/personalized_newsletter_c24ee20624.png" 
alt="Example of a personalized email from Sephora"
src="Example of a personalized email from Sephora"
/>

**Trigger campaigns** help retain users and guide them through the customer journey. Automated messages triggered by customer actions serve as timely reminders (e.g., about an abandoned cart) or provide updates (e.g., about order status). This approach increases conversion rates and strengthens customer loyalty.

[**Chatbots**](https://altcraft.com/blog/the-benefits-of-chatbots-for-businesses) speed up customer communication by being available 24/7 and resolving issues without operator assistance. AI-powered versions can fully interact with users, contributing to increased loyalty and retention.

<Img
img="/uploads/chat_bot_example_88a3b7a96c.png" alt="chat-bot-example.png"
alt="Example of a chatbot in the Domino's Pizza app"
src="Example of a chatbot in the Domino's Pizza app"
/>


## How to implement CVM in your marketing

The CVM approach is not feasible for all businesses, as its implementation requires a customer base of at least ten thousand users. A company must leverage various marketing channels (not necessarily all), such as push notifications, email campaigns, SMS, and messengers.

CVM also demands resources: a team of marketers, analysts, data experts, and IT tools, which are essential for collecting and processing large volumes of data.

### What is needed to implement CVM

1. **Set a goal.** Define the key metrics and outcomes your company aims to achieve with CVM. <p>
</p>
2. **Collect customer data and segment it.** Analyze the value of customers to the business by calculating the key metrics used in CVM. <p>
</p>
3. **Develop a plan** to increase customer value through available channels and tools. Use personalization, campaigns, and other forms of interaction. <p>
</p>
4. **Execute campaigns.** Utilize marketing management software, such as CRM, CDP, email campaign services, and more. <p>
</p>
5. **Analyze results** to adjust the strategy or improve future campaigns.

## CRM or CDP for implementing CVM

While the CVM approach traditionally relied on CRM systems, more functional alternatives have emerged today in response to market demands. It is crucial for a marketing system to collect and process information, as customer value management is data-driven.

**Let’s compare two popular tools for CVM:**

<Table>
|   | CRM (Customer Relationship Management) | [**CDP**](https://altcraft.com/blog/differences-between-cdp-dmp-esp-crm-erp) (Customer Data Platform) — Software that collects, analyzes and manages customer data. |
| ------ | ------ | ------ |
| Data | Collects information about all points of interaction with customers within the sales funnel, including calls, correspondence with managers and mailings. | Accumulates user data from all possible sources, combining them into a single profile for further analysis and use. |
| Customer journey | Partially defined: only from the moment of interaction with the company. | Full, because actions are tracked even before communication with the business: on the website, in the app, and so on. |
| Loyalty | Applicable to improving customer experience because all stages of the sales funnel and interactions within it are tracked. | Customer behavior is explored based on extensive data, which improves communication and increases the accuracy of personalized offers. |
| Omnichannel | + | + |
| Analytics | Based on historical data. | Can process data in real time. |
</Table>

In the context of CVM, the choice between using CRM and CDP depends on the scale of the business and its specific needs. Additionally, these systems can be integrated, providing the opportunity to gain a more comprehensive view of customer data.

### Advantages of using Altcraft CDP for implementing a CVM strategy

The platform not only handles the collection, processing, and storage of data from various sources but also includes tools for customer communication. Information is consolidated into a unified profile, which serves as the basis for creating personalized offers.

It also supports the principle of micro-segmentation, which is essential for managing customer value. Customer groups can be divided based on demographic characteristics, geodata, actions across different channels, purchase categories, and other parameters.

<Img
img="/uploads/segmentation_in_the_altcraft_platform_b3c4f3be0e.png"
alt="Example of audience segmentation by geolocation in Altcraft Platform"
src="Example of audience segmentation by geolocation in Altcraft Platform"
/>

Omnichannel marketing is implemented on the platform, allowing messages to be sent via email, SMS, Push, and messengers from a single interface. Real-time analytics provide instant access to data. 

<Img
img="/uploads/communication_channels_altcraft_platform_77b92a95fc.png"
alt="Channels for sending messages in Altcraft Platform"
src="Channels for sending messages in Altcraft Platform"
/>

Automation of mailings and personalization increase customer engagement and drive sales growth. On average, online sales increase by [**30%**](https://altcraft.com/en/features/cdp), and repeat purchases rise by [**49%**](https://altcraft.com/en/features/cdp).

[**Altcraft Platform**](https://altcraft.com/en) is a universal solution for simple and centralized management of customer value.

## Summary

CVM is a marketing strategy focused on increasing the value of each customer throughout the entire interaction period. This approach optimizes marketing budgets, saves resources, enhances user loyalty, and boosts company revenue.

Modern technologies such as Big Data, AI, machine learning, marketing automation systems, trigger mailings, and chatbots are used to manage customer value. These IT tools help process large volumes of data, personalize offers, and speed up communication.

The CVM approach requires management systems that enable the collection and processing of customer data. In this process, CRM and CDP systems play a key role and can be used either independently or in integration.




CVM boosts customer value via data-driven personalization, modern tech like AI, and tools like CRM/CDP to optimize budgets and enhance loyalty.

cvm-difinition.png

About what customer value management is, how this strategy is implemented in the digital era, and why effective CVM requires the use of management systems.

CVM: Definition, Technologies, Pros & Metrics for It

Customer Value Management (CVM): How Technology is Transforming Loyalty

<Video
url="https://www.youtube.com/embed/k0reI157Lpc?si=h_kMdp-MJev1JEhj"
/>


After the rejection of third-party cookie files, marketers are seeking ways to enhance user action tracking and optimize marketing campaigns. If you're involved in online advertising, the term "Conversion API" (or CAPI) has probably caught your attention.

This concept is frequently encountered in advertising strategies and holds immense significance for marketers. Professionals want to keep up with the times, especially considering the changing landscape where privacy is regulated more strictly, and third-party cookies are gradually being phased out.

In this article, we will explore what Conversion API (CAPI) is, developed to address current challenges. With this tool, marketers will be able to track data, optimize strategies, and multiply revenue even as privacy takes center stage.

## What is conversion API and how does it impact tracking and optimization

In advertising, the term "conversions" refers to a wide range of actions on a website or in an application, extending beyond simple purchases. They are indicators of user engagement and interest, ultimately reflecting the success of marketing campaigns. Conversions can include product views, completed purchases, content downloads, email subscriptions, form completions, and much more.

The emergence of Conversion API is a response by Meta* and Google to the challenges posed by strengthening privacy regulations and [**the phasing out of third-party cookies**](https://altcraft.com/blog/customer-data-privacy-issues-in-digital-marketing). Such APIs are an important solution to supplement the data that marketers will no longer be able to collect.

For brands, Conversion API is also important because it changes the logic of tracking desired actions. These APIs facilitate the seamless transfer of critical user action data to the Ads Manager of the respective advertising platform. It's akin to providing real-time updates, enabling marketers to access comprehensive and timely information, thereby enhancing the tracking and optimization of advertising campaigns.

Traditional methods heavily rely on browser tracking and third-party cookies, whereas Conversion API operates on the server side. These changes are key to improving effectiveness.

## Conversion API and pixels: what's the difference

Perhaps the concept of Conversion API reminds you of its counterpart — [**pixels**](https://altcraft.com/glossary/tracking-pixel-what-it-is-how-to-set-it-up-and-how-it-works). Their function is to capture user event data using third-party cookies and transmit it to platforms. This allows marketers to tailor advertising campaigns based on user behavior, ensuring that messages are delivered to those who have shown interest or taken specific actions on online platforms. Pixels play a key role in optimizing advertising performance and are crucial for its personalization and effectiveness.

However, with the phasing out of third-party cookies and the increasing popularity of ad blockers, such tracking using pixels is losing its effectiveness. In response to this, companies are monitoring events through servers and using Conversion API as a powerful alternative.

**Comparison of conversion API (CAPI) and pixels:**

<Img
img="/uploads/comparison_of_conversion_api_and_pixels_f2ffe3c936.png"
alt="Comparison of CAPI and pixels"
/>

**If you're facing the dilemma of implementing Conversion API and pixels or just Conversion API, the answer is this: major companies recommend using both options to enhance performance, as pixels are still capable of gathering valuable data.** The more information you have at your disposal, the more effectively you'll be able to tailor your advertising campaigns.

## Using conversion API: benefits

Now let's explain why Conversion API will definitely be useful for you in implementing your marketing strategy:

### 1. Increased accuracy and reliability of data

Conversion API provides high-precision data and reduces discrepancies caused by ad blockers and browser settings.

Marketers can rely on the data obtained to efficiently optimize advertising campaigns. For example, when tracking conversions, you can be sure that each conversion is accurately recorded. Knowing this information, you can control advertising expenses and [**increase ROAS**](https://altcraft.com/blog/roi-romi-roas-difference).

### 2. Improvement of attribution modeling

With Conversion API, the selected attribution model becomes more accurate, as you can see the entire customer journey and all their activity through the sales funnel.

Marketers analyze conversions across multiple touchpoints, based not only on web data but also on CRM data, offline conversions, and events at the bottom of the funnel. This comprehensive approach provides an understanding of how different channels influence conversions. This contributes to effective budget allocation.

### 3. Improved tracking across all devices

Conversion API shows marketers how users behave on a website or other resource from different devices.

This allows specialists to track the customer's cross-device experience, thoroughly analyzing their interaction with the product. As a result, they recognize the person who responded to the advertisement from a mobile phone and then made a purchase from a computer as the same user.

### 4. Enhanced privacy

Conversion API helps marketers comply with privacy rules while minimizing dependence on third-party cookie files.

Marketers respect user privacy, thereby [**building trust**](https://altcraft.com/blog/customer-trust). With Conversion API, they collect and transmit data in accordance with privacy requirements, ultimately contributing to building a positive brand image.

### 5. Minimization of data loss

Server-side tracking using Conversion API minimizes data loss, especially when ad blockers or anonymizers are used.

Marketers know they are recording all data acquisition points. This facilitates comprehensive data analysis and more accurate decision-making.

### 6. Strengthening data control

Conversion API represents an advanced level of control over the data exchange process because the authority to manage information lies with the advertiser.

Marketers control how data is disseminated within the company. It is specialists who decide which information to transmit and when to do so. They are responsible for securely processing information in accordance with the goals of the company.

## Utilize conversion API to track and optimize data without cookie files

So, Conversion API is an important tool in the modern marketer's arsenal. Its ability to provide data accuracy, improve privacy compliance, and offer comprehensive insights into customer behavior makes it an indispensable asset in the post-cookie era.

With Conversion API, marketers successfully navigate the changes in the world of online advertising and achieve success in an environment where accuracy, trust, and efficiency become priorities. Master Conversion API to stay "in the know" in the constantly evolving digital world and witness how this tool transforms the ways of audience interaction, campaign optimization, and performance enhancement.

*
*Organization recognized as extremist in the territory of the Russian Federation*

Source: [**Actioniq**](https://www.actioniq.com/blog/tracking-and-optimization/)

Conversion API empowers modern marketers with accurate data, privacy compliance, and insightful analysis, ensuring success in online advertising.

Блог англ.png

About what the Conversion API (CAPI) is, how to use it to track data, optimize strategies and increase revenue.

Conversion API: Enhanced Analytics & Marketing Optimization

Conversion API: Enhanced Tracking and Marketing Strategy Optimization

<Img
img="/uploads/dostavlyaemost_pochty_8427197869.jpg"
alt="9 Rules for Successful Email Deliverability"
/> 

No one doubts that email campaigns are a powerful marketing tool. Every day, 4 billion people check their inboxes and read their emails. The ROI for email campaigns can reach 3600% in some cases, making it one of the most effective acquisition channels.

<Img
img="/uploads/grafik_dostavlyaemosti_emejl_3a026860c6.png"
alt="Email sending and deliverability statistics"
/>

Email campaigns are a hot topic among marketers, but the importance of deliverability rates is often overlooked. Without a high deliverability rate, recipients won't receive the email and won't convert, resulting in lost profit. How can someone make a purchase if they don't even receive the promotion information via email?

We have good news: you can influence the deliverability of emails. The most important thing is to maintain the reputation of your domain to ensure that your emails do not end up in the spam folder. If you have no problems with this, you don't have to worry about the rest. In the post, we will discuss 9 main rules that you should follow. 

## 1. Set up your email correctly

Statistics show that 45% of emails sent worldwide are nothing more than spam. And 90% of cyber attacks happen through email. These are compelling reasons to demand correct settings and authentication from email senders, which is what email marketing services do to protect their users.

For beginners, setting up infrastructure may seem too complicated, and they skip this step or do it thoughtlessly. This is a bad idea. First, create a domain (@yourbusiness.com) and several subdomains (@yourbusinessteam.com). Do not use free email services (such as Gmail or Outlook) if you plan to launch mass mailing.

Pay attention to the authenticity of the email domain. This is necessary to be sure of reliability and security. Study and use the SPF, DKIM, DMARC, and BIMI protocols. If you cannot set up email yourself, seek the help of a specialist. This is important because otherwise, there is a risk that most of your emails will not pass moderation and will not be delivered to recipients.

## 2. Gradually warm up the domain

Once you have successfully completed the settings, start "warming up" your domain. Gradually increase the number of emails you send to avoid raising suspicion with your email provider and causing negative reactions from recipients. Be patient, soon you will be able to send out millions of emails. 

Pay close attention to the content of the email. It should catch the recipient's attention. At this stage, it is essential that as many emails as possible are opened. The success indicator will be the recipient's response to the email or a mark that the email is important to them.

<Img
img="/uploads/srok_progreva_07da73e80f.png"
alt="Domain warm up period"
/>

Warming up the domain takes about a month. This can be done manually or with the help of specialized services, which is much more convenient and faster.

## 3. Choose metrics consciously

A warmed-up domain is ready for mass mailing. But the work of a marketer does not end there. To understand if everything is working correctly, properly selected metrics will help. If there are any deviations, the settings need to be adjusted.

There are many performance indicators in marketing, and sometimes it can be difficult to determine which one to focus on. One of the most common metrics used in email marketing is the **Open Rate**. This is the ratio that shows the percentage of opened emails out of the delivered ones.

Another metric is the **Open reach**, which shows the number of unique recipients who opened the sent messages during a certain period of time.

<Img
img="/uploads/formula_open_reach_rate_4b7d0c0d29.png"
alt="Open reach formula"
/>

The **Placement rate** is a metric that counts the total number of delivered emails (including those in the spam folder). This metric is very similar to the deliverability rate, with the only difference — the deliverability rate counts emails that landed in the inbox and does not take into account those that [**ended up in spam**](how-to-avoid-spam-folder-in-gmail).

Each business chooses key metrics on which to focus its efforts. These indicators allow you to take a closer look at the real state of affairs in the company, and assess the effectiveness of advertising campaigns. With their help, you can notice which actions bring the highest result in customer engagement and how to influence deliverability.

## 4. Adapt email campaigns for mobile devices in time

Your email only has three seconds to live if the recipient tries to open it on their mobile phone and it doesn't open correctly or doesn't open at all. Unoptimized emails are deleted by 70% of people, without even attempting to open them on their computer. [**15% of those people**](https://mailchimp.com/en-gb/resources/impact-of-mobile-use-on-email-engagement/) will also unsubscribe from the mailing list. No matter how you slice it, people check their email on mobile phones much [**more frequently**](https://blog.hubspot.com/marketing/hubspot-blog-marketing-industry-trends-report?_ga=2.129955407.2116605659.1655405116-782004359.1655405116) than on desktops.

If you don't optimize your email campaigns for mobile devices, you'll lose a significant portion of your audience and potential revenue. Follow these simple rules. Make sure the email subject line is concise and no more than 30 characters, use clear and prominent calls-to-action (CTAs), and include preheaders to entice recipients to open your emails.

Monitor your reputation: every unsubscribed recipient negatively impacts it. Indirectly, this leads to a decrease in deliverability.

## 5. Carefully manage your contact list

A high-quality mailing list is a clean one. Of course, it's important to increase the number of contacts, but it's also useful to remove fake addresses and inactive users. According to statistics, the number of "live" recipients in the database decreases by a quarter every year. Regularly clean up your database, as this is key to a good domain reputation and a significant bonus for email deliverability.

Keep in mind that [**20% of customers**](https://www.marketingprofs.com/chirp/2016/31206/keep-it-clean-the-importance-of-email-list-hygiene-infographic) make mistakes and typos in their email addresses. Some do it intentionally, while others don't. Continuously check your list for new contacts, remove non-existent and non-working addresses. The right decision is to exclude from the database those to whom emails are often undelivered. There is no benefit from them, only harm to your company's reputation.

Using a purchased database is the most direct and fastest way to permanently damage the sender's reputation, along with its deliverability. Marketers still fall for this method of rapidly increasing their contact list. However, purchased databases are highly unreliable: no one knows for sure how many fake contacts they contain. And there is no guarantee that a fresh audience will be interested in your product.

## 6. Segment your audience and personalize your emails 

Segmentation and personalization are the main marketing tools for successful campaigns. [**Segmenting your subscriber list**](how-and-why-to-segment-target-audience) can increase email campaign revenue by 760%.

Personalization increases user engagement. It has been observed that [**88% of recipients**](https://www.dynamicyield.com/guides/state-personalization-email/) are more likely to open and read emails with personalized elements.

Together, these two techniques work great. Divide all subscribers into groups based on selected significant criteria. For each group, you can develop unique content that is most suitable for users' needs and preferences.

## 7. Make the unsubscribe process as simple as possible

Many people think that making the process of unsubscribing from a mailing list complicated will keep customers and save the company from losing its audience. In fact, it's quite the opposite. When a person has made the decision to unsubscribe, extra buttons and links only reinforce their desire to do so.

Don't hold onto customers by force. Those who unsubscribe on their own do your business a valuable service. Don't worry, your contact list won't be depleted after this: there's no place in it for disloyal subscribers. Moreover, it's much better than if the user clicks the "Spam" button. And that's exactly what will happen if you complicate the unsubscribe process.

Therefore, the "Unsubscribe" button should be noticeable and comply with the law's requirements. [**Double Opt-in**](what-is-double-opt-in) (DOI) has a positive effect on email deliverability. This technology will clean up the database from those who subscribed fictitiously. The subscriber list may fill up more slowly with DOI, but its quality will increase.

<Img
img="/uploads/email_unsubscribe_link_ac81d00477.png"
alt="Email unsubscribe link"
/>

## 8. Constantly improve your campaigns

Subscribers have different tastes, so we do not recommend using template emails. A/B testing can help find the best option. With this approach, the profitability of advertising campaigns [**increases by 28%**](https://www.litmus.com/resources/email-marketing-roi/).

Read the research. It has already been proven that the best time to engage customers is from 7:00 am to 10:00 am on Mondays and Thursdays. Results are much worse on weekends than on weekdays.

<Img
img="/uploads/vremya_otpravki_d60b798788.png"
alt="The best time to send emails"
/>

Consistency in sending email campaigns on the same days and at the same time can have a positive impact on engagement. Subscribers can come to expect and even look forward to receiving your emails at those specific times, which can help increase open and click-through rates. 

## 9. Create unforgettable content

You can discuss life hacks, case studies, and advanced techniques for avoiding spam filters, increasing deliverability, and other metrics for as long as you want. However, effective email marketing is impossible without quality content. Send only those emails that you would like to receive yourself.

The proverb "Clothes make the man" is very relevant here. [**69% of users**](https://www.invespcro.com/blog/email-subject-lines-statistics-and-trends/) will consider an email as spam just by reading the subject line. Do not use clickbait and vague phrasing, avoid spam trigger words. Spam filters will not allow an email with an incorrect subject line to reach the inbox. If they consider you a spammer, explaining anything to them is useless.

If you use infographics, stick to the 80/20 ratio. Of course, high-quality visuals bring good results, but in an email, text should prevail.

Email providers' algorithms work so diligently that they block the vast majority of spammers and even a little bit more. To avoid being among them, follow the rules of email marketing.

## Conclusion

Revenue from email marketing reached $10 million by the end of 2022, and rapid growth is predicted in the future. However, senders will have to be more careful about the reputation of their domains and IP addresses.

Therefore, it's important to choose reliable tools for setting up your email campaigns, use A/B testing, monitor deliverability, and apply key marketing techniques. In other words, adopting all 9 rules for successful email marketing discussed in this article would be beneficial.

Master the art of email marketing with our 9 rules for successful email campaigns. Improve your deliverability and engagement rates to drive business growth.

dostavlyaemost pochty.jpg

For those who are tired of low open rates and poor deliverability.

Email Deliverability: 9 Rules for Successful Email Campaigns

9 Rules for Successful Email Deliverability

<Img
img="/uploads/ROAS_ROI_ROMI_7292d14939.png"
alt="ROAS, ROI, ROMI"
/>

If your company only invests money in development, but does not earn it, that's definitely something to think about. ROAS, ROI, ROMI metrics are used to evaluate the effectiveness of investments in business and individual areas of work and, as a result, to see the weak spots and make the right decisions to change the strategy.

Each metric is suitable for a different degree of company overview. ROI is a complete assessment of the success of investments; it takes into account all revenues and expenses. ROMI is calculated when working with marketing. ROAS is used for individual advertising campaigns.

Metrics are often confused, so in this post we are going to figure out what they mean, how they differ, and why each is needed. We will also tell you how to calculate ROAS, ROI and ROMI correctly.

## What is ROI

**Return on Investment**, or ROI is used to understand how much is earned from each dollar invested. The ROI formula takes into account the costs of creating, maintaining, and promoting a product. This includes the cost of purchasing materials, salaries, the budget for advertising campaigns, etc.

### Why and how to calculate ROI

The calculation of ROI is important for assessing the profitability of your business: whether investments pay off and whether there is a profit from them. When the ROI is low, the decision is made to close unprofitable projects or change the marketing strategy and the entire direction of the company's development. ROI saves you from wasting your budget and tells where to invest money to get a better result.

**ROI formula (%):**

<Img
img="/uploads/ROI_b6b5495f5a.png"
alt="ROI formula"
/> 

ROI is calculated for a certain period, but during this period there should not be a dramatic change in circumstances, such as price hikes, new suppliers, and so on. In the formula, **revenue** is the money earned by the company. **Costs** include all investments made.

Also, the time interval for calculation depends on the sales cycle length.

What is a good ROI? Usually a result above 0% means that you have made a profit. Below that figure means the business is losing money. Exactly 0% ROI means that the business has paid off the investment, but has not earned anything.

*Example. In September, a sportswear store spent 10,000 dollars to update its clothing collection, paid employees 5,000 dollars in salary, and bought advertising for 3,000 dollars. This month, the store's sales amounted to 22,000 dollars. ROI = (22000-18000)/18000=22%. This is not a high value, but at the same time, the costs paid off in full, and the store's activities in September made a profit.*

### How to increase ROI

* **Check the effectiveness of marketing channels** and disable or adjust those that bring low results.
* **Work with your target audience.** It is possible that [**low quality leads**](MQL-and-SQL) are coming in because you are addressing the wrong people in your ads.
* **Connect sales and marketing** if there is inconsistency or problems getting information to another department. Sometimes a successful advertising campaign comes to naught if the sales team does not handle leads the right way.
* **Revise your business goals** and make sure they are realistic. Exaggerated plans will not bring results if there are not enough resources.

## What is ROMI

**Return on Marketing Investment**, or ROI is used to understand how much is earned from every dollar invested in marketing. Marketing expenses include the costs of advertising, promotions, events and other marketing activities. It can also be calculated for individual channels, such as [**messenger**](messenger-marketing) or email campaigns, contextual advertising, and so on.

### Why and how to calculate ROMI

The metric is important for evaluating the effectiveness of promotion. ROMI gives businesses a broader view of marketing. If you evaluate the superficial result (the number of clicks, applications, etc.), you can decide that the campaigns are successful. However, after calculating the return on investment, it turns out that you spend more money on marketing than you earn from it.

**ROMI formula:**

<Img
img="/uploads/ROMI_0dbda34671.png"
alt="ROMI formula"
/>

The ROMI formula is similar to the ROI calculation, but the **costs** include only the costs of marketing tools.

*Example. The company spent 3,100 dollars on contextual advertising, 1,000 dollars on email campaigns, and 900 dollars on [**influencers to promote products**](how-to-find-effective-influencers-to-promote-small-business). In the current month, the company's income amounted to 4,500 dollars. ROMI is (4500-5000)/5000= –10%.*

**What is a good ROMI?** More than 0% means that the investment pays off. Less than 0% — costs exceed revenue. 0% shows that investments go «to zero». *In the example above, the investment does not recoup the costs.*

### How to increase ROMI

* Make it easier for users to buy. Remove unnecessary steps in advertising and on the site. Don't force interested leads to fill out dozens of fields and confirmations. Let them reach the “Buy” button faster.
* Check the effectiveness of channels and individual advertising campaigns. Don't invest in things that don't work. Always look for ways to optimize your advertising and website — test hypotheses and reject unsuccessful solutions. Invest more in high-priority channels that generate revenue.

<Note>
Reliable data management system increases control over marketing performance. [**Altcraft Platform**](/en) automates the work with advertising and collects information from different sources in a single profile, so the company knows everything about customers. As a result, marketers make the right decisions and choose profitable strategies.
</Note>

## What is ROAS

**Return on Ad Spend**, or ROAS is a measure of the return on investment a business spends on advertising. It is used to check how much money has returned from investments in individual ad campaigns or channels. The ROAS formula includes advertising revenue (due to customers who saw the ad, clicked on the link and bought) and campaign costs (usually the cost of advertising on sites and excluding the work of a specialist).

### Why and how to calculate ROAS

ROAS is a metric that shows the effectiveness of a particular advertising campaign or promotion channel. You can evaluate individual strategies and techniques to eliminate unsuccessful ones and allocate a larger budget for successful ones. Thus, ROAS is needed to make decisions on specific marketing actions, but not on the entire strategy, as ROMI.

**ROAS formula:**

<Img
img="/uploads/ROAS_00f0e1c5ce.png"
alt="ROAS formula"
/>

The total metric for a campaign or individual ads is calculated.

*Example. The online store launched a Facebook advertising campaign and sent out an email campaign. Facebook advertising expenses amounted to 1,000 dollars, and the revenue received was 1,800 dollars. The email campaigns cost the company 300 dollars, and the revenue was 1,200 dollars. The ROAS of an advertising campaign on Facebook is 1800/1000=180%. And the ROAS of email campaigns is 1200/300=400%. Perhaps the company should increase the investment in email marketing, since it brings more profit for every dollar invested in advertising.*

**What is a good ROAS?** The calculation is different from ROI and ROMI. ROAS is considered good if its value is above 100%. Otherwise, investments in advertising do not pay off.

### **How to increase ROAS**

* Change creatives and offers of advertising campaigns that are not performing well. Check them out through testing.
* Drop the channels that bring insignificant results.
* Find weaknesses in the [**sales funnel**](what-is-sales-funnel) and work out the places where leads are lost.
* Check the effectiveness of the site: clarity, speed, accessibility, etc.

## The difference between ROI, ROMI and ROAS

The metrics are similar, but differ in scale. Some show the business globally, others in more detail. Let's compare them in the table.

<Table>
| **Difference** | **ROI** | **ROMI** | **ROAS** |
| ------ | ------ | ------ | ------ |
| **Calculate the return on investment in…** | business | marketing | ad campaigns |
| **Used to…** | Сhange the overall business strategy and focus areas | Test effectiveness and adjust marketing strategies | Change or cancel advertising campaigns |
| **What costs to consider…** | all (creation, maintenance, product promotion, and so on) | only marketing | only the budget of individual campaigns |
| **Formula** | (Revenue − Costs) / Costs * 100% | (Revenue − Marketing costs) / Marketing costs * 100% | Campaign revenue / Campaign cost * 100% |
</Table>

## Key points when working with ROI, ROMI and ROAS

* **Consider the context of the metrics.** Pay attention to the circumstances (market conditions) and don't look at metrics in isolation.
* **Collect accurate and complete data for the right analytics.** Choose a convenient system for data management.
* **Correctly determine the calculation period**, which depends on the duration of the sale. The longer the deal, the longer the time span.

## Conclusion

ROAS, ROI, ROMI are metrics that help to understand the effectiveness of investments in a business: whether the money spent on its development pays off. ROI refers to more global and general metrics. It takes into account the return on investment after calculating all investments made (from the cost of producing to advertising). ROMI shows the effectiveness of marketing investments. ROAS is responsible for the return on investment of individual advertising campaigns.

Metrics give a hint what to change in the work of the company. ROI is needed to adjust overall strategies. ROMI is calculated to adjust marketing strategies. ROAS answers the question of what to do with specific ads, newsletters, and other campaigns.

It is important to consider all metrics in context with other business data and use analytics systems.

Metrics are often confused. Read the post to learn what these metrics mean, how they differ, and how to calculate ROAS, ROI and ROMI correctly.

ROAS, ROI, ROMI.png

For those who do not know how to calculate the return on investment in their business.

ROI, ROMI, ROAS: What is the Difference and How to Calculate

What is the Difference Between ROI, ROMI and ROAS

<Img
img="/uploads/Top_8_Email_Marketing_Metrics_Improve_Your_Email_Strategy_49f8968cd0.png"
alt="Top 8 Email Marketing Metrics: Improve Your Email Strategy"
/> 

Despite the fact that email marketing is one of the oldest forms of [**inbound marketing**](inbound-marketing), it continues to be one of the most effective. There are many reasons for this, including that with over four billion daily email users, it's one of the most practical ways to reach someone. Not to mention that email marketing is incredibly cost-effective — email generates an estimated $42 for every $1 spent, giving it one of the highest returns on investment you could ask for.

However, simply running an email marketing campaign isn't going to automatically translate to success. The key is to monitor your email marketing efforts so that you can continuously adjust and improve your strategy over the long term. The best way to do this is by analyzing your email marketing metrics. With that in mind, the following are eight of the most important email marketing metrics that you should monitor.

## 1. Open Rate

According to research, the average email open rate should be [**between 12-15%**](https://www.campaignmonitor.com/resources/knowledge-base/what-are-the-average-click-and-read-rates-for-email-campaigns/). If your open rate is low, it means your subscribers have no interest in the emails you're sending them and they're not even bothering to open them. If your subscribers aren't opening your emails, then there's no hope in converting them. A low open rate can be indicative of a number of issues, whether it's bad timing, poorly crafted email subject lines, or email subject matter that's simply not relevant to your subscribers.

<Img
img="/uploads/email_open_rate_e65629beb5.jpg"
alt="Open Rate"
/> 

**What is email bounces?**

- A hard bounce occurs when the email you sent is returned as a result of a permanent error. This indicates that the email address was either invalid or your email was marked as spam. If you get too many hard bounces, check spam mail databases to make sure you weren't added. If you were, then you have a problem with your strategy (whether it's the number of emails being sent or the relevance of the content). To prevent invalid email addresses, use a double opt-in form to confirm the right address. Either way, remove hard bounce addresses from your email list so they don't reoccur.

- A soft bounce isn't as severe as a hard bounce. It means that either the email size was too big, the server was down, or the recipient's inbox was full. Simply resending the email at a later date should hopefully solve the issue.

## 2. Click-Through Rate (CTR)

Once subscribers open your emails, you want to make sure that they're engaged with your content to the point where they'll follow any calls-to-action (CTAs) you may have. Your CTR indicates whether or not subscribers are clicking on any of your links or not. If they read your emails but don't click-through to another page (like your website), it likely means that they weren't interested in the content, your CTAs weren't convincing, or the content wasn't relevant to them. 

The average CTR should be [**between 2-5%**](https://www.campaignmonitor.com/resources/knowledge-base/what-are-the-average-click-and-read-rates-for-email-campaigns/). But do not confuse CTR and CTOR (click-to-open rate). How to calculate CTR? Divide the number of users who actually clicked on at least one link by the number of emails delivered. At the same time, CTOR compares the number of people that opened your email to the number that clicked. That's why the average CTOR should be higher — you'd better keep this metric at 10-22%.

<Img
img="/uploads/email_CTR_b206854b0d.jpg"
alt="Email CTR"
/> 

## 3. Subscribe Rate

Your email list is going to naturally decline over time if you don't sign up new subscribers at a regular pace. As such, you need to monitor your email subscription rate. If it's low, it means you need to put more effort into [**building your list**](how-to-build-an-email-database), whether it's via your content marketing efforts, your social efforts, or your paid advertising campaigns. The higher your subscription rate is, the bigger your pool of potential leads becomes.

## 4. Unsubscribe Rate

The last thing you want to see is people unsubscribing to your email list. However, monitoring this metric is critical to identifying serious problems with your email strategy. A high unsubscribe rate may mean that you're attracting poor quality leads — or that your email content just isn't relevant to your audience.

<Img
img="/uploads/unsubscribe_rate_50b468768b.jpg"
alt="Unsubscribe Rate"
/> 

## 5. Email Conversion Rate

Your conversion rate tells you how effective your emails are at converting leads. You can compare the conversion rates of different email campaigns, landing pages, CTAs, types of content, and more to determine what types of emails convert highly and what emails don't to help you plan future email campaigns. How to calculate email conversion rate? Divide the number of people who completed the desired action by the number of total emails delivered. And then multiply the result by 100.

## 6. Opening Time

The opening time shows you when your subscribers are opening your emails. If you notice that the majority of subscribers open your emails in the evenings — and you've been sending out your emails in the afternoons, then you can adjust your strategy to send out your emails closer to when your audience is opening them. Doing so can help boost your open rate and allow you to reach more of your subscribers at the right time.

## 7. Time Spent Viewing Email

This email marketing metric is only useful if you're attempting to engage your readers via your emails. It's not a useful metric if your emails are only a couple of sentences long since your subscribers won't spend much time on them. However, if you send longer articles, knowing how long subscribers spend viewing your emails will be helpful. If they are spending a lot of time on your email, it means the content is relevant and engaging. If they don't, it means it's not.

## 8. Active Audience

The active audience metric shows you how many subscribers on your list are actually active. A subscriber that hasn't opened an email from you in months can be considered inactive. You'll want to remove subscribers who are inactive for long periods of time from your email list every three months or so. If you leave them on, they'll negatively affect all of your other metrics, making it difficult to analyze them effectively.

## Conclusion

Email analytics are crucial to any successful email marketing campaign. You're going to find that there are hundreds of different email metrics out there that you can monitor. Some may be more useful to you than others, but these are a few of the absolute essential email marketing metrics that you should track. Be sure to contact us at [**Altcraft Platform**](/en) for information about our powerful real-time analytics tools.

Here's a list of the most important email marketing metrics that you should analyze. This way, you can continuously adjust and improve your strategy.

Top 8 Email Marketing Metrics: Improve Your Email Strategy.png

The best way to monitor your email marketing efforts is by analyzing your email marketing metrics. Here's a list of the most important metrics that you should care about.

8 Key Email Marketing Metrics Every Marketer Should Track

Top 8 Email Marketing Metrics: Improve Your Email Strategy

<Img
img="/uploads/top_digital_marketing_metrics_6028daab69.jpg"
alt="8 Top Digital Marketing Metrics to Track"
/> 

When we speak of marketing in the digital age, we no longer mean the vague feel-good awareness and light branding that we used to consider effective marketing. The digital age has made it necessary to employ highly scientific methodologies informed by very keen insights gained from the measurement of specific marketing metrics to track and predict business trends and patterns.

Marketing campaign metrics, also known as KPIs (Key Performance Indicators), are vital for monitoring and planning marketing initiatives and seeing how we might optimize them for best results. They form a sound base of knowledge by which marketers B2B business owners can formulate and implement all their business decisions.

Current technology makes it possible to automate many of these marketing functions. Even so, it will be helpful to understand the various types of digital marketing metrics and how they might be relevant to your business, which we’ll be getting into in this piece.

## 1. Return on Marketing Investment (ROI)

This is one of the most important marketing metrics today and refers to the calculation of how much value your marketing efforts generate. You will find your ROI by subtracting your marketing budget (social media, email, digital, print marketing, etc.) from your increased revenue or profit growth. The importance of determining this metric is to help executives decide how much they should spend on ongoing or potential future marketing campaigns.

A campaign with a negative ROI will need to be redesigned or completely shut down, while positive ROI campaigns should be extended or even expanded.

Any campaign with an ROI standing at or over 5:1 is considered particularly strong for most industries. Marketing departments will find this a powerful tool to help them justify their spending and compare what they are doing with competing organizations or brands.

<Img
img="/uploads/ROI_05d6172f15.jpg"
alt="Return on Marketing Investment"
/> 

## 2. Customer Lifetime Value (CLV)

The digital marketing and e-commerce landscape offer tight margins for profit in these hyper-competitive times, which is why companies need to find ways of maximizing their market share and revenue streams.

One of the essential metrics for marketing effectiveness is the Customer Lifestyle Value metric. This seeks to establish how much value in terms of purchases spanning their entire lifetime as a customer they represent to the company.

If, for example, a client makes purchases totaling $5,000 over the whole course of their relationship with you and you’ve spent approximately $1,000 in advertising and service costs, then the client’s CLV will be equivalent to $4,000.

The idea or usefulness of this marketing measurement is that it can give you insight into which clients to focus on when trying to maximize value, encourage growth, and maximize profits. Rather than seek out new clients in hard-to-penetrate markets, it makes more sense to develop your existing customer base.

<Img
img="/uploads/CLV_8d429d7611.jpg"
alt="Customer Lifetime Value"
/> 

## 3. Customer Acquisition Cost (CAC)

Here, an organization tries to estimate what it costs them to get a new customer or client for their goods or services. This KPI marketing metric is determined by calculating the total cost of your advertising, sales, and marketing department expenses and all related expenses divided by the number of new clients brought on board.

It is a valuable measure to determine for a business since a low cost of generating leads and subscribers will mean that it will cost you little to acquire new clients and thus generate more significant revenue and profits.

This metric has come about in recent years with the advent of the internet age, whereby consumer behavior can be tracked more efficiently, which has allowed organizations the tools to help them determine where to invest their money.

<Img
img="/uploads/CAC_e0ae67dea4.jpg"
alt="Customer Acquisition Cost"
/> 

## 4. Click-Through Rate (CTR)

This is one of the most valuable metrics for determining the effectiveness of an advertising campaign in the digital landscape. You will measure the click-through rate by considering the number of people who clicked on a link on your email or website after seeing it on their screen. If, for example, 100 people see your advertisement but only ten people click on it, then your click-through rate will be 10% (Ad Clicks/ Ad Impressions * 100).

When you have a high click-through rate, you can deem your advertisement or marketing strategy a success since a good proportion of the people exposed to your adverts are interested enough to click on it and potentially go on to become customers.

By analyzing this metric, you will determine which adverts need to be changed and which are effectively drawing in leads and potential clients. Even though this is a general rate, it still gives a beneficial picture of your target market’s behavior and ranks high on the list of examples of marketing metrics.

<Img
img="/uploads/CTR_4cc621023e.jpg"
alt="Click-Through Rate"
/> 

## 5. Funnel Conversion Rate

Any helpful marketing metrics list will include the [**Funnel Conversion**](conversion-funnel-stages-and-optimization) Rate. Before a potential lead is converted to a customer, they will go through certain phases. These phases can be pictured in terms of a funnel, and this is because the number of people per stage will start off being much larger than it will be when they finally become your clients.

You can calculate your conversion rate by taking the Total Sales Numbers/ Number of Leads * 100. If you had 100 clicks, inquiries/leads but only 30 people made purchases, in the end, your conversion rate will be 30%. In the e-commerce world, this is a very healthy conversion rate, with most businesses reporting conversion rates of 2-3%.

This might seem like a tremendous waste, but the digital marketing world adjusts to this reality by maximizing the spread of their advertising reach at the least cost possible so that even such conversion rates translate to substantial customer numbers. Even at a 2% conversion rate, for example, a company with 10 million leads in a month will have 200,000 clients, which might be more than enough for them to make healthy profits. 

## 6. Cost per Action (CPA)

This refers to an affiliate marketing model whereby payment is triggered whenever a targeted user performs a particular action. Such actions vary widely in nature and may include purchase, a click, a subscription, signing up for a trial, filling a survey, making a download, and more.

This model is often referred to as Pay-Per Action (PPA) or Performance-Based Advertising since an advertiser will only have to pay once their desired action is completed. Such models call for significant conversion rates to make financial sense in most instances.

This is why most small to medium-sized businesses will utilize Cost-Per-Click (CPC) or Cost-Per Impression (CPM) Models, where low conversion levels will not be too harmful to profitability. This metric directly monitors how much a company invests in driving a particular action they desire. It is usually reported at monthly intervals.

<Img
img="/uploads/CPA_92e9a721c4.jpg"
alt="Cost per Action"
/> 

## 7. Bounce Rate

In the simplest terms employed by Google themselves, website bounce rate refers to the percentage of single-page or single interaction sessions your website experiences. Here, visitors will land on a page but leave without clicking on anything or interacting with it in any way. This is why it is referred to as a ‘bounce.’

[**Email marketing**](pay-more) metrics include bounce rates that refer to the percentage of emails on a marketing campaign list that the intended recipient does not see because their server turned them away.

While email campaigns might be considered high ROI advertising methods due to their low costs, high bounce rates can still render them completely ineffective. Analyzing the bounce rates experienced by your website or email landing pages will give you a good measure of how engaging these pages are, giving you an idea of where you might need to improve.

Fixing high bounce rate issues to achieve optimal performance in marketing takes a good deal of analysis and attention to determine what is putting people off. You will need to consider your presentation, prices, site structure, email copy quality, website design, and so on as you troubleshoot the matter for practical solutions.

## 8. Net Promoter Score

This is a very widely used marketing metric that focuses on [**what customers think about your product**](how-to-use-customer-feedback-to-increase-sales) or service and whether or not they would be willing to recommend it to their family, colleagues, and friends. In most instances, the search for this information will utilize a single-question survey offered to clients.

The survey will ask the customers to choose a number ranging from -100 to 100, whereby negative numbers will indicate a negative attitude towards the company, while positive numbers show a favorable opinion.

A 100 answer will show that the customer has the highest view of the company possible, and vice versa. A Net Promoter Score is now arrived at by taking the average of these individual survey answers to achieve a reliable picture of how customers view the company in general and their willingness to recommend its services and products to others around them. Altcraft Platform has its own tool for creating NPS surveys — [**Forms**](/features/forms-and-surveys).

This marketing measurement is a handy one as it can give companies a warning when their customers are becoming unhappy to implement changes before they lose their clients completely.

## Final Thoughts

There are many key marketing metrics out there that can be used to analyze and monitor business initiatives and marketing performance. With advances in data gathering technologies and statistical methods, they keep growing in number.

To stay ahead of the pack, you must gain a deep understanding of what are marketing metrics and stay abreast of the developments occurring in this field. This is especially true if your work relates to in some way or relies on digital marketing.

By keeping track of your social, consumption, sales, and lead generation marketing metrics, you can keep your finger steadily on the pulse of your organization’s health. Our powerful [**marketing automation tool**](/ru) can help you achieve this simply, efficiently, and effectively. Give it a try today. 




Marketing metrics can help you better understand your business processes. ROI, CTR, CAC, LTV — learn more about how to calculate KPI in marketing.

top-digital-marketing-metrics.jpg

Marketing campaign metrics are vital for monitoring and planning marketing initiatives and seeing how we might optimize them for best results.

8 Key Digital Marketing Metrics | Important to Track

8 Top Digital Marketing Metrics to Track

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