Leverage GDPR-compliant platforms

[sakibkhan22197]

1) How long do your newsletter subscribers stay on your list;

2) How quickly you need to be reimbursed.

Let’s start with the first one…how long do your email subscribers stay on your list? Some of your email subscribers will drop off. This is because some people will unsubscribe and some may delete their emails altogether. Therefore, it is important to understand how many people are dropping off your email list each month.

Let's say 5 percent of your newsletter subscribers drop off each month.

This means that all your subscribers will cease within 20 months.

Therefore, your email subscriber LTV can be estimated at $1.50 per email subscriber x 20 months = $30.

But most companies can’t sit around for 20 months waiting to recoup their marketing expenses. So, you need to figure out how quickly you’ll get paid back. There are a number of factors to consider. But the most important factor is that if you have a lot of money, you can afford a longer period than if you have very little money.

This is the secret of well-funded e-commerce companies. They can afford to spend money to acquire email subscribers and customers and they don't need to have a positive ROI on that subscriber/customer for a long time.

But if you are self-funded, you will need to get paid back much faster. There is no exact rule of thumb, but let's say it is 3 months if you are self-funded and 7 months if you have a venture investment.

This means that Jim should be able to afford to employment data acquire an email subscriber for $4.50 if his business is self-funded and for $10.50 if it is funded.

The story gets better with email marketing for ecommerce once you know the value of each email subscriber
Ok, let’s say Jim’s company is self-funded. That means he can afford $4.50 to acquire an email subscriber. However, that’s only part of the story.

Let's say Jim is able to buy traffic at $1.00 per click. This means he would need 1 in 4.5 visitors to sign up for his email list. This is very high and probably not possible. However, this should also be added to completed purchases.

Let's also assume that Jim spends $100.

And let's say Jim gets 8 email signups from the 100 visitors that come to his site.

8 x 3 mesos x $1.50 = $36.

But 2 people also purchased flowers from those 100 visitors for an average of $100 per order.