email as a channel divided by number of email subscribers = Monthly gross revenue per email subscriber.
This is the best place to start. Here you want to make sure mobile database you have GA (or another analytics platform) set up to track how many purchases 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 email marketing ecommerce campaigns. Or, you can get sophisticated and have different UTMs for different campaigns and aggregate them.
Ideally, you are able to assign the overall revenue according to the Nikkei Shimbun generated by your email subscribers and the actual average order values (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 averages $30,000 in sales per month online.
Jim notes that his investments in e-commerce email marketing average $15,000 per month.
Jim also knows that he has 5,000 email subscribers who receive his ecommerce marketing emails every month.
This means that each of Jim’s newsletter subscribers is worth $3.00 in gross revenue.
This means that, in theory, if Jim wanted to increase fresh list his online revenue to $60,000 a month, he would have to figure out how to get 20,000 email subscribers.
But Jim can’t stop there.
You need to consider the cost of goods sold to know how much you can spend to acquire a subscriber to your newsletter.
Suppose Jim spends $50 for each flower he sells for $1.00.
This means that the best equation Jim can use is:
