Alright, now the fun begins. We need to determine the value of each of your e-commerce subscribers. Here’s the quick formula to do that:
Monthly revenue from email as a The Basics channel divided by number of email subscribers = gross monthly revenue per email subscriber.
This is the best place to start The Basics
Here, you need to make sure you’ve set up accurate mobile phone number list GA (or another analytics platform) to track the number of purchases that come from your email clicks. This should be easy to do by including a specific UTM in each of your emails. You can use a common UTM across all your ecommerce email marketing campaigns. You can also dig deeper and have different UTMs for different campaigns and group them together.
Ideally, you can combine the overall revenue generated by your email subscribers with the actual average order values (AOVs) of the 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 how to build phone number material coming from his e-commerce email marketing efforts.
Jim also knows that he has 5,000 email subscribers who receive his e-commerce marketing emails each month.
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 The Basics
He needs to factor in The Basics cost of goods sold to know how much he can spend to acquire an email subscriber.
So, let’s say Jim spends $50 for each fax database flower he sells at $1.00.
This means that the best equation for Jim to use is:
(Monthly email revenue as a channel divided by number of email subscribers) * Gross Profit = Monthly Net Revenue per Email Subscriber.
So, let’s do this math.
Jim sells flowers online for $15,000 a month.
He has 5,000 email subscribers.
This means Jim earns $3.00 per month in gross revenue for each of his email subscribers.
But Jim only keeps 50% of it.