What’s the Real Lifetime Value of Having an Email List?

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What’s the Real Lifetime Value of Having an Email List?

Conventional marketing, as we know it has undergone a paradigm shift with the opening of the world-wide web. Back in the day, businesses relied upon advertising to speak for their products and services. Digital marketing is no more than 2 decades old. With each invention, marketing gained newer platforms. Into this maelstrom came the world of Emails. “Mail it to me” became the catch phrase of the time. Soon businessmen realized that Emails could also be a channel for marketing.

In the world of emailing, protocol is very important. You have to maintain a respectful approach. Sending emails is almost as personal as actually visiting people in their home via virtual reality.It is important that, you respect their customs and traditions in their home, as also, in the world of emails. Similarly, permissions are important. You can’t just bombard people’s homes with promos and advertisements.

Once you have established your mailing clientele and your business, you will find the need, at some point, to ask, is there a real lifetime value of an email list and if yes, then how can you determine the lifetime value of a subscriber?

The lifetime value of a Customer and the lifetime value of an email subscriber have similar metrics. But there is a difference. This difference is found in the fact that instead of using customer relationship lifetime we use the lifetime of an email subscription along with the email programs and its impactwithin the given time frame. The aspect being looked at is the additional profits that an email subscription brings and not the profits that a customer brings.

Let’s look at what is involved in email marketing and the lifetime value of your email list. There are three aspects to email marketing, 1. Number of active Subscribers, 2. Average lifetime of your subscribers and 3. Profits generated.

Active subscribers are the ones who are generating revenue for you via emails. To get the average lifetime of an email address you need to find your inactive addresses. One way of doing that is to check the subscription date and then check the date which marked their inactive status. For the active ones, the time they spent in your database is your answer to their worth. You get two sets of numbers and together this gives you your average life of email addresses.

Collate your data over a 12-month period and all profit garnered from it. Then separate profit that came exclusively from email. Email marketing can use different types of actions like assisted conversion and last click to derive this information.With the combination of these profits and the part email marketing played in making these, you get the total profits coming to you via email. Don’t make the very common mistake of looking for revenue in place of profits.

With all this information at hand, now your job is to find out the real lifetime value of your email list. Dividing your average number of active subscribers with the total of email marketing profits will give you some idea of the contribution you can expect in a year.

The real lifetime value of your email list can be found out by using the data you have collected on the average lifetime of an email address and by the numbers that tell you the profits generated by the average active subscriber in a year. Now multiply the two sets of numbers and there you have real lifetime value of your email list.

These numbers can help you create more awareness about your product through email marketing. It can help refine your email marketing program ensuring that your efforts get due justice in the form of conversions, sales and of course profit… the final desired outcome of all things marketing and selling.

Running any business always involves risk. It is only natural for business owners to feel vulnerable while handing over marketing projects to a third party. Look for companies who are willing to share this risk with you. Companies that work with a Results Based Marketing Approach will work with their clients and get paid only according to the results that they produce for the clients.

Every unique business needs solutions that are tailor made for them! Marketing can be inexpensive if you are only paying for the results you obtain.  It is important to look for companies that believe in results Based Marketing.  When the risk is shared, the results produced will be better.


Suggested changes


1) The conclusion needs to tie in/ be linked with the topic of the blog.

2) Try to maintain the flow by adding sentences like “it is understandable for any business owner to get overwhelmed by the many different tasks ahead. Sometimes it makes better business sense to handover email marketing to the experts”. This can be followed by the conclusion.

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