Monthly revenue from email channel divided by number of email subscribers = Total monthly revenue per email subscriber.
This is the best place to start. Here, you’ll want to make sure you’ve set up GA (or another analytics platform) to track how many purchases came from your email clicks. This should be easy to do by including a specific UTM in each of your emails. You can use one universal UTM across all of your e-commerce email marketing austria phone number library campaigns. Or, you can get a little more complicated and set up different UTMs for different campaigns, then aggregate them.
Ideally, you would allocate the total revenue brought in by email subscribers and the actual average order value (AOV) of purchases made by email subscribers. This will give you the most accurate view and allow you to make further adjustments in the future.
(Monthly revenue from email channel divided by number of email subscribers) * Gross profit = Monthly net revenue per email subscriber.
So, let’s do the math.
Jim sells $15,000 worth of flowers online each month.
He has 5,000 email subscribers.
This means Jim earns $3.00 in gross revenue per month from each email subscriber.
But Jim only keeps 50% of it.
So Jim actually makes $1.50 per month from each email subscriber.
How to Determine How Much You Can Spend to Acquire Email Subscribers for Your Ecommerce Email Marketing
At the simplest level, it seems like you working in digital marketing can spend $1.50 to get email subscribers for your email ecommerce efforts. That makes sense, but something is missing. It’s missing:
1) How long your email subscribers stay on your list;
2) How quickly you need to be repaid.
Let’s start with the first question… How long do your email subscribers stay on your list? Some of your email subscribers will churn. This is because some will unsubscribe, while others may cancel their emails altogether. Therefore, it’s important to know how many people are disappearing from your email list each month.
The eCommerce email marketing story gets better when you understand the value of each email subscriber
OK, let’s assume that Jim’s company is text services bootstrapped. That means he can afford to pay $4.50 to acquire an email subscriber. However, that’s only part of the story.
Let’s assume Jim is able to buy traffic at $1.00 per click. This means he needs 4.5 out of every 1 visitor to subscribe to his email list. This number is very high and probably impossible. However, this must also be added to the completed purchases.
So let’s also assume that Jim spent $100.