KPI

Revenue per email

Revenue per email is an essential KPI for marketers, eCommerce businesses, and salespeople, as it informs them how effective their email marketing campaigns are. In addition, many marketers use this metric to figure out if they are spending their budget efficiently. Importantly, it also allows them to set goals and benchmark results against comparable businesses in the same industry.

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What is revenue per email?

Revenue per email is the number calculated by dividing the revenue generated by the total amount of emails that were sent. Multiple variables will increase revenue per email. Segmentation, high click-through rates and open rates, an email list with minimal bounces, and engaging subject lines are a few factors that will impact the average revenue generated and return on investment.

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How to calculate your revenue per email

RPE is calculated by dividing the total revenue generated from an email marketing campaign by the total number of emails sent in that campaign. The ratio helps you measure the effectiveness of your email marketing efforts, allowing you to determine if you are getting the most value from your emails.

Many companies use RPE to determine their budget for email programs. For example, if they spend $100 on an email campaign, they want to make sure that it pays off by generating at least $100 in revenue, or even more if possible. If it falls short of that amount, then the company will need to rethink its strategy and make changes to increase RPE to grow over time.

Revenue per email formula

Total Revenue / Total emails sent = Revenue per email

What is a good revenue per email?

A good revenue per email will depend on the amount invested and the expected outcome. In some industries, like in the restaurant business, it may cost money to get someone into the restaurant. However, once that customer has visited multiple times, their lifetime value as a patron increases significantly.

The amount of revenue received should be equal to or close to the amount invested. This would indicate that your digital marketing efforts are effective and that the email revenue generated from those who opt-in is an effective strategy.

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What is a bad revenue per email?

If you’re continuously losing money from your email campaigns, it’s time to change your email marketing strategy. Bad revenue per email is when your email performance does not meet the minimum expectations for engaging your email subscribers. Your email marketing strategy will vary depending on the amount of money you have to invest in your campaign. Other signs of lousy revenue per email include poor email opens, high unsubscribe rates, high bounce rates, low click rates, and low performance on other email marketing metrics. Taken as a whole, even if you lose money on your campaign and have bad revenue per email if your goal is different than simply a high conversion rate, this type of email may not be a failure. 

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Revenue per email KPI examples & templates

Your revenue per email can be added to our email report template : 

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Email report template Email report template

Our email marketing report template has everything you need to get started quickly: it’s pre-built with the standard KPIs you need, and it’s fully customizable so that you can visualize the data you want, the way you want. Track metrics like open rates, unsubscribe rates, click-through rate, and deliverability rate.

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Revenue per email best practices

To improve your revenue per email, consider implementing the following tools and strategies:

Revenue per email best practices

step 1 icon Segment your lists

Use segmentation to target specific audiences with personalized messages that speak directly to their needs or interests (such as an upcoming product launch). This will increase conversion rates for prospective customers and improve the overall user experience.

step 2 icon Optimize for buying habits

Make sure that every piece of content you put into an email is relevant to previous buying habits. For example, if you send out a special coupon for something that somebody has never purchased, then it’s unlikely that they will ever use it. Also, if you notice your customers are making purchases from their smartphones, make it easier to purchase from a mobile device.

step 3 icon Test your campaigns

Always test new features and content with small groups before sending it out to all of your customers. When sending email messages to your customers, it’s essential to make the most informed decision possible. Create a case study from your test list and optimize the content to resonate with the most people possible.

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