– The cost per email subscriber can be calculated by dividing the total ad spend by the number of subscribers in a month and multiplying it by the average welcome series open rate.
– The average welcome series open rate is an important factor to consider as it provides a more accurate reflection of the cost of an engaged subscriber who hasn’t made a purchase yet.
– Increasing the open rate can be achieved by segmenting or reducing the subscriber list, but this does not change the sunk cost per person and may increase the overall cost.Incorporate the Average Welcome Series Open Rate when calculating the cost per email subscriber to get a more accurate reflection of the true cost of an engaged subscriber who hasn’t purchased yet.(Total Ad Spend / Number of subscribers in a month) x Average Welcome Series Open Rate = Cost per email subscriber
Most people don’t incorporate the Average Welcome Series Open Rate. You should, as it’s a more accurate reflection of the true cost of an engaged subscriber who hasn’t purchased yet.
For example, if you spend $1000 and have 100 people subscribe with an average open rate of 50%, your true cost per email subscriber is $20.
The only way to increase the open rate is by removing (some will say segmenting) the list to fewer people. However, this doesn’t change your sunk cost per person; it just increases the cost.
Reminder: open rates are going away in September with iOS 15. #marketing #ecommerce #customerjourney #KPIshttps://www.linkedin.com/in/jivanco