Everyone in the restaurant industry knows an email address is worth something. Yet when you ask a marketing director how much they are worth, you almost never get a solid answer. NO MORE. Here is how to calculate the value of your email address (protip - download a calculator to do it for you here).
The variables (pieces of information) you’ll need:
Average ticket ($35)
Average Eblast Open Rate (24%)
Average Click Rate (20%)
Average Landing Page Conversion Rate (50%)
Average Redemption Rate (25%)
Number of email blasts sent in a year (12)
Average participation rate of any given consumer (25%)
First, let’s calculate the value of an email address by assessing the revenue impact from a single eBlast. Here, we’ll need our average ticket, your open rate, click rate, landing page conversion rate and redemption rate.
your average ticket ($35) * your open rate (24%) * your click rate (20%) * your landing page * conversion rate (50%) * your redemption rate (25%) = Expected revenue per email per blast ($.21).
The answer is the expected revenue per email address per email blast. In our example case, the answer is $.21.
Now, we have to calculate the annual value of that email address per blast. To do that, we need to discover our participation coefficient…the expected number of eblasts that will influence a random person in your database to spend money. To do that, multiply:
Number of email blasts sent in a year (12) * Average participation rate (1/4) = Participation Coefficient (3)
In our example, your participation coefficient is 3. Which means that any given email address is going to spend money as a result of 3/12 emails you send over the year. To calculate the annual value of an email address, we multiply:
Participation coefficient (3) * Value per email address per blast ($.21) = Annual value of an email address ($.63).
Or, just download our free Email Value Calculator and save yourself a ton of time.
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