When you know the value of each email subscriber,you can tell when a partnership is successful

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Most ecommerce businesses simply choose to increase or decrease their budget each month. However, the tricky thing about all online businesses is that there are leading indicators. This means you may not see sales and revenue growth from scaling for several months.

You want to make informed decisions about when and how much to scale. And, to do that – you need to base your decisions on both direct actions (conversions to sales) and leading indicators (such as the number of email subscribers and their likelihood to buy later).

How to Determine How Much Each of Your E-Commerce Email Subscribers Is Worth: The Basics
Okay, now the fun begins. We need to figure out how much each of your ecommerce customers is worth. Here’s a quick formula to do it:

Monthly Revenue from email as a channel divided by number of email subscribers = Gross Monthly Revenue per email subscriber.

This is the best place to start. Here you want to make sure you afghanistan phone number list 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 one common UTM across all of your ecommerce email marketing campaigns. Or, you can get fancy and have different UTMs for different campaigns and combine them.

Source: SendX Tracking URL
Ideally, you can set the total revenue generated by your email subscribers and the actual Average Order Value (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 sells an average of $30,000 per month online.

Jim sees an average of $15,000 per month coming from his e-commerce email marketing efforts.

Jim also learned that he had 5,000 email subscribers who received his e-commerce marketing emails every month.