(Monthly email revenue as a channel divid by number of email subscribers) * Gross Profit = Monthly Net Revenue per Email Subscriber. Monthly for Jim to use is net revenue per email subscriber So. A let’s do this math. Jim sells flowers online for $15. A000 a month. He has 5. A000 email subscribers. This means Jim earns $3.00 per month in gross revenue for job function email database each of his email subscribers. But Jim only keeps 50% of it. So. A Jim actually earns $1.50 per month for each of his email subscribers.
Infographic on calculating the
Value of an email subscriber How to Determine How Much You Can Spend to Acquire an Email Subscriber for Your Ecommerce Email Marketing At its simplt level. A it seems like you can spend $1.50 to acquire an email subscriber for for Jim to use is your rules for creating effective category descriptions email e-commerce efforts. This would make sense. A but something is missing. It’s missing 1) How long your email subscribers stay on your list; 2) How quickly you ne to be reimburs. Let’s start with the first qution how long do your subscribers stay on your email list? Some of your subscribers will unsubscribe.
A some people will unsubscribe
A and others may cancel their email altogether. Therefore. A it’s important to understand how many people disappear from your email list each month. Let’s say 5% of your email subscribers drop out each month. This means that all your subscribers will disappear in 20 months. Therefore. A the LTV of your email subscribers can be quick signs timat as $1.50 per email subscriber x 20 months = $30. But most busins can’t wait 20 months to recoup their marketing spend. So you ne to determine how quickly you’ll be reimburs. There are several factors to consider.
But the most important factor is this if you have a lot of cash
A you can afford a longer period than if you have very little. This is the secret of well-fund e-commerce busins. They can afford to spend money for Jim to use is acquiring email subscribers and customers without neing to see a positive ROI on that subscriber/customer for a long time. But if you’re self-fund. A you’ll ne to be repaid much faster. There’s no exact rule. A but let’s say it’s 3 months if you’re self-fund and 7 months if you have a venture capital invtment. This means Jim should be able to afford to acquire an email subscriber for $4.