Summary
Calculating the monetary value of email deliverability involves various approaches that combine financial metrics, email performance indicators, and cost considerations. Some experts argue that deliverability's value equates to the entire email marketing budget because undelivered emails render the budget useless. Other methods focus on calculating lost revenue due to undelivered emails by measuring the impact on key performance indicators (KPIs) like open rates, click-through rates, and conversion rates. Tools and metrics from platforms like Google Postmaster Tools, Microsoft Sender Support, SparkPost, Spamhaus, and SMTP status codes can help identify deliverability issues and their impact on revenue. Additional factors include extrapolating customer value from previously inboxed domains, considering ESP support and consulting costs, and determining the value of a dedicated deliverability role. A common formula for estimating lost revenue is (volume * average order value) / recipients. Ultimately, calculating the value of deliverability involves identifying the source of deliverability problems, tracking KPIs, and understanding the long-term value of maintaining a strong domain reputation.
Key findings
- Budget Equivalence: Deliverability's value is sometimes considered equivalent to the entire email marketing budget.
- Lost Revenue: Lost revenue due to undelivered emails is a primary factor in determining deliverability value.
- KPI Impact: Key performance indicators (KPIs) like open rates, CTR, and conversion rates are crucial for quantifying the effect of deliverability issues.
- Platform Data: Google Postmaster Tools, Microsoft Sender Support, and other platforms provide valuable data for assessing deliverability.
- Reputation Worth: Maintaining domain and IP reputation is critical, as a damaged reputation incurs additional costs to repair.
- Cost Savings: Identifying and addressing the source of deliverability issues can lead to cost savings by preventing future problems.
Key considerations
- Data Accuracy: Ensure the accuracy of email volume, average order value, and recipient data when calculating revenue loss.
- KPI Monitoring: Continuously monitor and analyze KPIs to detect and respond to deliverability issues promptly.
- Tool Utilization: Effectively use available tools and platforms to track and manage deliverability.
- Holistic Approach: Consider all factors influencing deliverability, including ESP support, consulting costs, and internal expertise.
- Strategic Investment: View deliverability efforts as a strategic investment that protects the overall email marketing ROI.
- Proactive Measures: Implement proactive measures to maintain domain and IP reputation, preventing costly repairs in the future.
What email marketers say
12 marketer opinions
Calculating the monetary value of email deliverability involves quantifying the impact of deliverability on email marketing ROI. This can be achieved by assessing lost revenue due to undelivered emails, examining the effect of deliverability on key metrics like open rates, click-through rates, and conversion rates, and comparing the cost of deliverability solutions with the revenue generated. Several approaches exist, including extrapolating customer value from previously inboxed domains, calculating revenue per email in the inbox, and deriving deliverability KPIs from standard metrics. Identifying the source of deliverability issues and understanding factors like sending reputation, authentication, and engagement are also crucial for determining value.
Key opinions
- Lost Revenue: Calculate lost revenue by multiplying the number of undelivered emails by the revenue per message.
- KPI Impact: Monitor open rates, click-through rates, and conversion rates to quantify the impact of deliverability improvements.
- Deliverability Metrics: Track placement rate, spam complaint rate, and bounce rate as indicators of deliverability performance.
- ROI Calculation: Determine revenue generated from email campaigns and subtract associated costs, including deliverability tools and services.
- Hidden Costs: Consider the hidden costs of employing a dedicated deliverability person versus using a consultant.
- Source Identification: Identify the root cause of deliverability problems to apply cost savings by addressing the source.
Key considerations
- Extrapolation: Extrapolate the average value of a customer from previously inboxed domains to those where inboxing has ceased.
- ESP Support: Factor in ESP support, consulting costs, and business practices impacting deliverability.
- Dedicated Role: Consider the value of a dedicated deliverability person and their impact on preventing issues.
- Standard KPIs: Derive deliverability KPIs from standard metrics (open rate, click rate, bounce rate, complaint rate) broken down by domain.
- Reputation: Understand the impact of sending reputation, authentication, and engagement metrics on ROI.
- Lifetime Value: Measure the value of email marketing by tracking conversion rates and customer lifetime value.
Marketer view
Email marketer from Mailjet Blog explains that to calculate ROI of deliverability efforts, one must calculate lost revenue due to undelivered emails (emails not reaching inbox) and compare that to the cost of deliverability solutions.
4 Feb 2025 - Mailjet Blog
Marketer view
Marketer from Email Geeks suggests calculating revenue per email in the inbox and considering factors like ESP support, consulting costs, and the impact of business practices on deliverability. They also highlight the hidden costs of employing someone versus using a consultant.
17 Apr 2025 - Email Geeks
What the experts say
3 expert opinions
Calculating the monetary value of email deliverability can be approached in different ways. One perspective equates the value of deliverability to the entire email marketing budget, as the budget is wasted if emails aren't delivered. Another method uses a formula involving email volume, average order value, and recipients to determine the revenue lost due to deliverability problems. A third approach emphasizes the worth of a domain's reputation, stating that a damaged reputation requires additional time and money to repair.
Key opinions
- Budget Equivalence: The value of deliverability is equal to the entire email marketing budget.
- Revenue Loss Formula: Use the formula (volume * average order value) / recipients to find money lost due to deliverability issues.
- Domain Reputation Worth: Deliverability value can be tied to domain reputation; a lost reputation costs time and money to repair.
Key considerations
- Holistic Value: Consider that without deliverability, the entire email marketing effort is rendered useless.
- Data Accuracy: Ensure the accuracy of volume, average order value, and recipient data for calculating revenue loss.
- Reputation Monitoring: Proactively monitor and maintain domain reputation to avoid costly repairs.
Expert view
Expert from Email Geeks argues that the value of deliverability is equal to the cost of the entire email marketing budget, as the entire email program is wasted if the user doesn't see the email.
23 Jun 2022 - Email Geeks
Expert view
Expert from Spamresource explains that you can value deliverability by determining the worth of your domain. "Once a domain loses its good reputation, the sender has to spend additional time and money to repair any damage."
31 Jul 2022 - Spamresource
What the documentation says
5 technical articles
Various documentation sources emphasize the use of data and tools to calculate the monetary value of email deliverability. Google Postmaster Tools allows senders to monitor domain/IP reputation and estimate revenue loss from spam/blocked emails. Microsoft's sender support provides data to assess the impact of deliverability issues and calculate the revenue impact of deliverability tools. SparkPost highlights the use of detailed deliverability metrics (delivery rate, bounce rate, engagement) to measure campaign performance and the effect of deliverability efforts. RFC Editor provides details of SMTP status codes to understand deliverability problems. Spamhaus offers methods to measure IP/domain reputation to see the effects of deliverability issues.
Key findings
- Reputation Monitoring: Domain and IP reputation monitoring helps identify deliverability issues.
- Revenue Impact: Data from sender support helps calculate the revenue impact of deliverability problems and tooling.
- Detailed Metrics: Delivery rate, bounce rate, and engagement metrics are useful for assessing campaign performance and deliverability.
- Status Codes: SMTP status codes provide key data for diagnosing deliverability problems.
- IP/Domain Measurement: Spamhaus provides ways to measure IP and domain reputation to identify potential issues.
Key considerations
- Tool Utilization: Utilize tools like Google Postmaster Tools and Microsoft sender support to gather data.
- Metric Tracking: Track detailed deliverability metrics to assess campaign performance.
- Code Analysis: Analyze SMTP status codes to understand the nature of deliverability problems.
- Reputation Management: Proactively monitor and manage IP and domain reputation.
- Proactive Approach: Use available data and tools to proactively identify and address deliverability issues to minimize revenue loss.
Technical article
Documentation from RFC Editor details all SMTP enhanced status codes, which can provide key data points for deliverability specialist when dealing with deliverability issues. These help you to see the types of deliverability problems you have.
28 Feb 2025 - RFC-Editor
Technical article
Documentation from Microsoft responds that by using sender support, it will give you data that helps you see the impact of deliverability problems on your ability to reach your audience and lets you calculate the revenue impact from deliverability tooling.
20 Dec 2022 - Microsoft
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