– The average cost per email sign up for a commodity product is $17.65, but can increase to over $35 if the open rate is low.
– By using data and software, the cost per email can be reduced by half and the subscription rate can be more than doubled.
– Using Formtoro, the cost per email can be further reduced to $7, saving a company $10,650 per month, while also adding valuable data for personalization.Implement a software solution, such as Formtoro, to reduce the cost per email sign up and increase subscription rates, resulting in significant cost savings and revenue growth.For a commodity product that we’ve been working with, the average cost per email sign up is $17.65 (I often see a lot higher). So, basic math tells us that the average open rate is around 50% if they don’t mail frequently, which both increases the cost of the email to nearly double, hello $35+ per email. So assuming an email is at least worth $17.65 WITHOUT DATA, there’s a lot of space there. We know from a software offer perspective that we can reduce this cost by half while increasing the subscription rate by more than double WITH DATA.
Per 1000 subscribers, the raw costs of email collection per company breaks out to something around $17,650 per month in ad spend to collect those from paid sources. Most brands don’t know their cost numbers on this. So $17.65 per email without data is the starting point. With Formtoro in the same account, we’ve dropped the cost down to ~$7 per email, saving a company $10,650 per month while also adding data which they were missing at the same time. We do this without a direct discount on the first order, which means we can save them an additional 10-20% of their entire coupon-driven cart value while promoting a second purchase.
For a standard brand making $50k per month, this equates to an additional $5-$10k in revenue. We haven’t even used the data yet. Let that sink in. We’re saving a client $15,650 – $20,650 a month in efficiency costs modeled at $50k per month revenue BEFORE using any data for personalization. But wait, we use that data to model all our ad spend too, which saves more money and more efficiently allocates capital to what’s working best, so we don’t guess with creative, making the whole system even more efficient as you can see from the click-through rates.
So no matter what your ad budget is, we make it work more efficiently too. To get this, though, you need a playbook, strategy, and software. Now go take your monthly revenue and your costs and put them in a spreadsheet, then come back and tell me how much you’d pay for our services to unlock those results for you. If we’re saving you more than $10 per email captured and adding data to the mix, including data on the 50% of the list that will never open your emails to avoid that being a sunk cost before you even start with personalizing content, we don’t become a business expense, we become your entire data backed business growth model. It’s all about perspective. Have a great weekend everyone!#ecommerce #marketing #datahttps://www.linkedin.com/in/jivanco