How much is an email subscriber worth?

If you’ve ever read Avinash (the guru of web analytics) you should be familiar with the concept of “micro-conversions” – these are the other important things a website can do for your business. And like your e-commerce conversions, you should be measuring them too.

Why? It gives a better sense of the true economic value that the website is bringing to your business.

In our case, continuing to build on the email subscriber list we had long before we ever had a website, is a key business objective. The email list powers many of our online sales and the conversion rate from our email list is often in double figures.

While we’ve always had a Campaign Monitor sign up form, we wanted something a bit more active – something that worked a bit harder for us to sign up more subscribers.

So, we found PadiAct. It ticked all the boxes in terms of functionality, integration with Campaign Monitor and  a nice focused pop-up dialog with really nice rules around targetting so that visitors only see it under certain conditions.

New subscriber pop-up

We followed best practice and incentivised sign-ups, and it looks as if it’s working so far, having collected a handful of new sign-ups in the first hours after installing it (which was a cinch).

But at the outset I mentioned “micro-conversions” and the importance of measuring what’s important to your website and business.

Luckily, thanks to PadiAct’s support section, we found out how and where to look for the display of the form versus conversions (people who subscribed). It’s tucked away under Content and Events, for those of you familiar with Google Analytics.

That wasn’t quite enough for us though – this email subscription is pretty important to our business, so we wanted to measure it as an explicit goal. Following on from PadiAct’s blog post, we used the same values for Event Category (“PadiAct”) and Event Label (“Subscribed”) when setting up a goal.

Screen Shot 2013-04-05 at 13.02.32

You might also notice that we’ve given the goal a value of €3.75. Where did that figure come from?

First off, it’s a good idea to give your goals a monetary value.

To come up with the figure of €3.75, we multiplied our e-commerce conversion rate from emails by average order value (again, for email conversions) and came out with €3.75.

So, thanks to Avinash and PadiAct, we’ve been able to work out that an email subscriber is worth around €3.75 to our business. Neat, huh?

 

2 thoughts on “How much is an email subscriber worth?

  1. Thank you for the mentioning Chris. Really glad we could help.
    Being mentioned in article where there is also the name of Avinash and the topic of subscriber value: priceless. Made our day!

  2. Now you have to optimice title, copy and sections which the visitors/prospects loves.
    A very interesting concept is the recency: the less days before the last purchase the more likelihood a customer buy.
    Combining the recency segmentation with testing looking for the copy which more convert, you would make more value email Campaigns.
    JL

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