– The success or failure of a brand’s email program can be determined by two key ecommerce KPIs: subscription to conversion rate and time to conversion by quartile.
– Subscription to conversion rate measures the number of people who subscribe and make a purchase, indicating their intent to buy.
– Time to conversion by quartile analyzes the distribution of orders over a specific timeframe, providing insights into when subscribers are most likely to make a purchase.Track and analyze the Subscription to Conversion Rate and Time to Conversion by quartile in order to determine the success or failure of your brand’s email program and make informed decisions about marketing strategies and offers.2 ecommerce KPIs you need to be tracking as a brand and email agency. These two will determine the success or failure of a brand’s entire email program. But first, let’s myth bust a very common misconception: more emails collected = more revenue. This isn’t necessarily true. For this to be true, the Subscription to Conversion Rate must remain constant.
Subscription to Conversion Rate: The number of people that subscribe in a given period and make a purchase. It’s not about how many people see your forms and subscribe; it’s about how many people subscribe and, as a result, make a purchase. The only reliable way to measure this is by using unique coupon codes.
Time to conversion by quartile: What time frame do 25%, 50%, 75%, and 100% of your orders happen for subscribers over a time period relevant to the total number of orders from subscribers collected during that period? Google “quartile” if you don’t know what it means. It’s worthwhile in statistics to understand standard deviations and quartiles. It’s the distribution of orders over a timeframe.
Your entire business should be based around these two stats. Here’s why: people that subscribe show more intent to make a purchase than those that don’t. They are a captive audience that provides a means for you to market to them. They have a coupon that they can use to get a deal on their purchase, and it was large enough for them to sign up. If you’re collecting data during sign up (you should be), you have all the information you need to craft a relevant and timely message to them.
In just 60 days, we’ve taken our subscription to conversion rate from 22% up to 30% – that’s a raw 25% improvement, and we haven’t started personalizing the emails yet. We predict we’ll be able to get it up to a 40% subscription to conversion rate without any additional discounts.
Not all channels are the same, though. When you track subscription to conversion rate, we see just under 20% via our paid Facebook Ads as a conversion rate, yet as a channel, it has an 8% signup rate. This is why you need to understand the data and the difference between correlation and causation. We’ve since adjusted our offers via paid channels to compensate for the lower subscription to conversion rate, given that only 20% of visitors on average return.
If this post hit you as an agency, times are changing, it may be time for a strategy shift.Imagine unlocking 25% more conversions with a proven framework in less than 90 days, now imagine that as part of your pitch against other agencies that can’t unlock that because they don’t have the tools necessary to deliver.https://www.linkedin.com/in/jivanco