subject: Calculated Profit Through Email Marketing [print this page] Your email campaigns should be resulting in revenue, and even better, profit! So how can you tell how profitable your email campaigns are? Here are some quick and easy formulas:
Revenue Per Email: Every email address on your list is worth a particular dollar amount per year. To calculate your RPE (Revenue per Email), use the following formula:
Total annual sales resulting from email campaigns / number of email addresses sent = RPE
Calculating Lost Revenue: To find out how much attrition is impacting your revenue growth, use the following formula:
(Number of email addresses that unsubscribe or bounce) x (RPE) = Lost Revenue
Now the question: are you tracking your profitability? Its easier for some people to track profitability than it is for others (based on whether youre selling something via your email campaigns, or whether youre solely building rapport), but email marketing is truly an effective and profitable method for establishing your brand.
Email marketing is one of the best ways to establish and deepen relations with your customers. Why? First, the people who opt-in to your email newsletter are people who are genuinely interested in your products, services and expertise. They want more information. They are members of your targeted market. A prospect sold on your expertise will soon be sold on your products or services.
email-marketing is incredibly affordable. While traditional advertising requires a hefty budget for design, printing and production, media placement, and so many more, the cost for sending a mass email to many customers and prospective customers is extremely low per contact.
Most paid services also provide powerful statistics for email campaigns that help measure effectiveness. Imagine being able to see who has read your email, who has clicked links in your mail, which ads were most effective. Imagine being able to track when someone forwards to a friend, and then add their friend to your subscriber list! With statistics like these, your campaigns can be adjusted regularly to return the best results.
