If you’re a non-profit, you can skip this chapter.
Most people focus on open and click rates when evaluating whether their email campaigns are successful or not.
While these stats are better than nothing, wouldn't you agree a better and more accurate way of evaluating the performance of a business is by the revenue / profit it makes?
After all, we’re here to do email marketing or whatever it is we’re doing… to make sure our business is as successful as it can be, right?
And do you judge how successful your business is... by:
- Open and click rates? or
- How many subscribers or followers you have?
- How many people visit your website? or
- How much money your business makes?
You tell me. Go on. I’m listening.
It’s crucial for you to know how much money your email campaigns generate.
Even better when you can answer the following questions:
- Which email is making you the most revenue? (aka #1 revenue generator)
- How much is email X making? What about email Y? Email Z?
- What is the lifetime value of subscriber S?
- What is the average lifetime value of your subscribers?
- What is the average lifetime value of subscribers who came from your Facebook Ads X campaign?
If you knew the answers to the questions above…
1/ Learn from your best performing emails
Mimic them, and write more profit-pulling emails like that to get maximum results.
(result: more mahhhney, less guesswork which emails are working, more time saved, less frustration)
2/ Know the lifetime value (LTV) of your subscribers
So you can segment your VIP customers (based on who spent the most money with you), spend 80% of your time to treat them better, and offer more premium offers.
(result: more money, higher conversions with less effort, happier customers)
3/ Know the average lifetime value (ALTV) of a subscriber in your business
Which means on average, how much each subscriber is worth to you. You'll then know how much you can afford to spend on getting a new subscriber (hint: spend less than this ALTV to profit).
(unlimited ad spend → unlimited traffic → more mahhhney)
Wouldn’t you agree “revenue” is a much more accurate indicator of how your business is doing?
- Email opens, clicks, number subscribers and followers, number of people visiting your website -- these stats have their places, but they’re all vanity metrics -- they make you feel good but they don’t put money directly into your bank account.
- Revenue and earnings -- they make you feel good but they ALSO put money into your bank account.
It’s pretty obvious one would use (2) as the basis when evaluating their business performance.
After all, a business needs cash not only to survive, but to thrive. “Feel good” numbers can’t financially support your business, let alone make it successful.
How to know how much money your emails generate
Your email marketing tool / ESP should tell you these numbers. However, many ESPs don’t have earnings tracking capability. Or if they do, they make jump through hoops (endless clicking and loading).
If they don’t have this capability, you can switch to BirdSend which will give you these numbers quickly, front and center.
First, let’s start with the ALTV for your entire account, which will automatically be shown to you the moment you load the Contacts page.
Second, you can also know the ALTV based on a specific tag/campaign:
Next, it’s the ALTV based on MULTIPLE tags/campaigns (e.g. what is the ALTV of those who bought product x AND y):
And you can also see the LTV for every email you sent as well the entire email series / sequence:
If you fancy giving BirdSend a risk-free try, click here now.