Jim also knows that he has 5. A000 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. A if Jim wants to increase his online income to $60. A000 per month. A he will ne to figure out how to get 20. A000 email mobile database subscribers. But Jim can’t stop there. He n to factor in the cost of goods sold to know how much he can spend to acquire an email subscriber. So. A let’s say Jim spends $50 for each flower he sells at $1.
This means that the bt equation for Jim to use is
Monthly email revenue as a channel divid by number of email subscribers) * Gross Profit = Monthly Net Revenue per Email Subscriber. Monthly A000 email subscribers who receive net revenue per email subscriber So. A let’s do this math. Jim sells flowers online for $15. A000 a month. He distribution strategy has 5. A000 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. 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 your email e-commerce efforts. This would phone number qatar make sense. A but something is missing. It’s missing 1) How long your A000 email subscribers who receive 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 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.