Email marketing is a powerful tool for healthcare organizations, offering a cost-effective way to communicate with patients, promote services, and maintain engagement. However, like any marketing strategy, measuring the return on investment (ROI) ensures that email marketing is effective and aligned with organizational goals.
By tracking the right metrics, considering both financial and non-financial returns, and optimizing campaigns for patient-centric care, healthcare providers can leverage email marketing to drive long-term success.
What is ROI in email marketing?
ROI in email marketing is the financial return generated from your email campaigns compared to the cost of running them. In simple terms, it’s a measure of how much revenue or value a healthcare organization gains from its email marketing efforts. In healthcare, the ROI extends beyond just monetary gains; it also includes patient engagement, satisfaction, and adherence to treatment.
See also: Why HIPAA compliant email has a high return on investment (ROI)
How to measure email marketing ROI in healthcare
Measuring ROI in healthcare email marketing involves several key steps:
Track email performance metrics
To accurately measure the success of your email campaigns, you need to track key performance indicators (KPIs) like:
- Open rates: The percentage of recipients who open your email. High open rates typically indicate that your subject lines are compelling and that recipients trust your brand.
- Click-through rates (CTR): The percentage of recipients who click on links within your email. A higher CTR suggests that your content is engaging and relevant to your audience. “By tracking the Click-Through Rate (CTR) of your healthcare marketing campaigns, you can measure the effectiveness of enticing your audience to interact with your online content or ads,” says Patient Care Marketing Pros.
- Conversion rates: This is the percentage of recipients who complete a desired action, such as scheduling an appointment, downloading a health guide, or signing up for a webinar. Conversion rates are a key metric to gauge the effectiveness of your email in driving patient behavior.
- Unsubscribe rates: A high unsubscribe rate could indicate that your email content isn’t meeting the expectations of your audience or that you're sending too many emails.
These metrics provide insight into patient engagement and overall campaign performance, helping you identify what’s working and what needs improvement.
Calculate ROI using the formula
The standard formula for calculating ROI is:
ROI = (Net Revenue − Cost of Campaign)/Cost of Campaign × 100
- Net revenue: This includes any income generated directly from email campaigns, such as appointments booked, services availed, or products purchased (e.g., telehealth services or healthcare equipment).
- Cost of campaign: This encompasses everything from email platform fees, content creation, design, and labor to any external tools or services used.
Go deeper: A healthcare email marketing ROI calculator
Consider long-term value (LTV)
In healthcare, patient relationships are long-term. Beyond immediate revenue, you should also factor in the lifetime value (LTV) of a patient. If a campaign leads to a new patient who will continue receiving treatments, follow-ups, or consultations over the years, the LTV can significantly boost ROI.
An example is when a patient who initially signs up for a telemedicine consultation via email later seeks additional services.
Measure non-financial benefits
While monetary returns are important, patient trust, satisfaction, and loyalty also matter in healthcare. These intangible benefits can be measured using:
- Patient surveys: Post-email surveys that assess patient satisfaction or willingness to recommend services.
- Engagement metrics: Monitoring whether patients who receive emails also engage with other parts of your healthcare system, such as patient portals or mobile apps.
- Compliance with care plans: Tracking how email reminders (e.g., medication reminders or follow-up appointments) improve patient adherence to prescribed treatments.
Best practices for improving email marketing ROI in healthcare
To maximize the ROI of email marketing, healthcare organizations should follow these best practices:
- Segment your audience: To ensure that healthcare marketing campaigns resonate with the recipients, healthcare organizations should focus on personalization. Segment your email list by demographics, medical conditions, treatment plans, or patient preferences to ensure that recipients receive relevant and personalized messages.
- Focus on valuable content: Patients and healthcare consumers respond well to educational and informative content. Provide valuable information, such as health tips, condition management advice, or updates on healthcare innovations. Incorporating videos, infographics, or patient stories can further enhance engagement.
- Use automated workflows: Automated emails can nurture patients through the healthcare journey, from appointment reminders to post-treatment follow-ups. Automation reduces manual effort, making your email campaigns more efficient and cost-effective.
- Ensure HIPAA compliance: Given the sensitivity of patient data, your emails must be HIPAA compliant. Ensure you use a secure, HIPAA compliant email service and that any patient information shared is handled properly to avoid legal and financial penalties.
- A/B test your campaigns: Testing different email subject lines, content, or sending times can help identify what resonates most with your audience. A/B testing allows you to make data-driven improvements and optimize your campaigns for better performance.
See also: HIPAA compliant email marketing: What you need to know
FAQs
What types of email campaigns generate the highest ROI in healthcare?
Campaigns that typically yield the highest ROI in healthcare include:
- Appointment reminders: Reducing no-shows and filling open slots.
- Health education campaigns: Empowering patients to take proactive steps in managing their health.
- Patient retention campaigns: Keeping current patients engaged with regular updates, check-ins, or new service offerings.
How can healthcare organizations ensure their email marketing is HIPAA compliant while measuring ROI?
To ensure HIPAA compliance, healthcare organizations should:
- Use HIPAA compliant email services that offer encryption and secure data storage.
- Avoid including protected health information (PHI) in email content unless necessary and encrypted.
- Measure ROI without violating privacy by tracking aggregate engagement metrics (open rates, clicks, conversions) rather than individual-level data.
What tools are available for healthcare providers to measure email marketing ROI?
Healthcare organizations can use a variety of tools to track email performance and measure ROI:
- Email marketing platforms like Mailchimp, Constant Contact, or Campaign Monitor (Analytics tools such as Google Analytics to track conversions from email campaigns.
- CRM systems to track patient interactions and link them to email campaigns. These tools help automate the process of measuring email engagement and ROI.
See also: 5 email marketing stats for healthcare providers