How to Find Out How Much Each of Your Ecommerce Email Subscribers Is Worth: The Basics
Okay, now the fun begins. We need to figure out how much each of your ecommerce subscribers is worth. Here’s a quick formula to do that:
Monthly revenue from email as a channel divided by number of email subscribers = Gross monthly revenue per email subscriber.
This is where you want to make sure you have GA (or another analytics platform) set up to track how many purchases overseas chinese in usa data are coming from your email clicks. This should be easy to do by including a specific UTM in each of your emails. You can use one common UTM across all of your email marketing campaigns. Or you can get sophisticated and have different UTMs for different campaigns and aggregate them.
Ideally, you are able to match the aggregate revenue generated by your email subscribers to the actual average order value (AOV) of purchases made by your email subscribers. This will give you the most accurate view and allow you to make further adjustments in the future.
Let's take an example...
Jim's Online Flowers sells an average of $30,000 per month online.
Jim sees an average of $15,000 per month coming from his e-commerce email marketing.
Jim also knows that he has 5,000 email subscribers who receive his ecommerce email marketing emails monthly.
This means that each of Jim's email subscribers is worth $3.00 in gross revenue.
This means that, in theory, if Jim wants to increase his online income to $60,000 per month, he will need to figure out how to get 20,000 email subscribers.
But Jim can't stop there.
He needs to factor in his cost of goods sold to know how much he can spend on acquiring an email subscriber.
So let's say Jim spends $50 on each flower he sells for $1.00.
This means that it is better for Jim to use the equation:
(Monthly revenue from email as a channel divided by number of email subscribers) * Gross profit = Net monthly revenue per email subscriber.