predictability of forecast
Determine the true ROI of your email list building efforts
If you don't know how much an email costs, it's impossible to determine the ROI of marketing efforts aimed specifically at increasing your email subscribers.
More accurately determine the true ROI of your other channels
One of the dangers of eCommerce marketing is that you turn off channels that are actually profitable but you don’t realize it. For example, you might test Facebook ads , and those tests will show that your ROAS isn’t high enough. You might have a lot of people coming to your site, but too few of them are making a purchase. For that reason, you might turn off Facebook ads.
But what you don't realize is that people love your store, but aren't ready to buy right now. So they add their name to your email list. If you don't know how much your email subscribers are worth, you may not take that into account when buying Facebook ads and end your campaigns prematurely.
E-commerce success is math
E-commerce is an art. You have to have great products. You have to have a great store. You have to have something you're passionate about. But you also have to know math. And in math, you have to assign a value to each part of your funnel.
This will help you in partnership
When you know the value of each email subscriber, you can uk whatsapp numbers understand when a partnership is successful and when it is not.
partnerships to get more email subscribers
Lets you know when to scale
Most e-commerce businesses simply choose to increase or decrease their budget each month. But the tricky thing about any online business is that there are leading indicators. This means you may not see sales and revenue growth from scaling for a couple of months.
You want to make informed decisions about when and how much to scale. And to do that, you need to make decisions based on immediate actions (conversion to sales) and leading indicators (like the number of email subscribers and the likelihood that they will buy later).
How to Determine How Much Each of Your Email Subscribers Is Worth: The Basics
Well, now comes the fun part. We need to figure out how much each of your eCommerce subscribers is worth. Here's a quick formula for that:
Monthly revenue from email as a channel divided by the number of email subscribers = gross monthly revenue per email subscriber.
This is the best place to start. Here you should make sure that you have GA (or another analytics platform) set up to track the number of purchases that come from email clicks. This should be easy to do by including a specific UTM in each of your emails. You can use one common UTM across all of your eCommerce email marketing campaigns. Or you can get complicated and use different UTMs for different campaigns and combine them.
