Your email campaigns should be resulting in revenue, and even better, profit! So how can you tell how profitable your email campaigns are? Here are some quick and easy formulas:

Revenue Per Email: Every email address on your list is worth a particular dollar amount per year. To calculate your RPE (Revenue per Email), use the following formula:

Total annual sales resulting from email campaigns / number of email addresses sent = RPE

Calculating Lost Revenue: To find out how much attrition is impacting your revenue growth, use the following formula:

(Number of email addresses that unsubscribe or bounce) x (RPE) = Lost Revenue

Now the question: are you tracking your profitability? It’s easier for some people to track profitability than it is for others (based on whether you’re selling something via your email campaigns, or whether you’re solely building rapport), but email marketing is truly an effective and profitable method for establishing your brand.

Best wishes, and Happy Marketing.

If you use your email message to help you sell, tread very carefully. I’m not saying don’t do it, but until people are completely ready to buy, they will not be likely to click through to a sales page. You will have more success by providing links to more information on your site, and from your site offer them the chance to buy now. This will also help you to measure the effectiveness of your sales message apart from your click-through rate.

For example, did 100 people click through for information but only 10 actually clicked from your sites information page to the buy-now page? Perhaps you can change the offer on your site and measure it again. Like we’ve mentioned before, Test and Measure! It’s the only way to achieve true results.

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