What Is The Customer Lifetime Value Of Your Newsletter Subscribers?


Have you ever thought about the customer lifetime value of your newsletter subscribers? After all you’re sending out newsletters to subscribers and we are sure you aren’t just doing it for fun? Maybe it is enjoyable and it’s a nice thing to do, but if we are honest the real reason you’re doing it is because you want the subscriber to buy from you or if they do already buy from you, you want them to buy more from you.

But if you don’t know how valuable their customer lifetime is then how do you know if this marketing resource is working for you? By understanding the customer lifetime value of your newsletter subscribers you can better improve your email marketing strategy and make smarter decisions. So how can you work out your customer lifetime value of newsletter subscribers?

Firstly we need to look at how many active subscribers you have, this can be done by looking at your email marketing database and seeing how many active subscribers you have. Those with bounce backs or inactive email accounts are not your active subscribers.

You then need to look at the amount of sales you have received through your newsletters, you can find this out by looking at how many people have clicked through your newsletter to purchase a product on your website, how many people have ordered using a code that was only available through newsletters and such like.

Finally you need to take the amount you have taken via newsletter sales over the year and then divide that amount by your subscribers. This number will tell you the average lifetime value of each subscriber, per year.

For example, and in very simple terms, if you have 25 subscribers to your newsletter and £100 has been spent in a year through your newsletters you will take £100 and divide it by 25, the total will be £4 and this is the monetary value of a newsletter subscriber to your business. When you then look at the average lifetime of a subscriber to your newsletter, multiply this number by the yearly value and you will have the customer lifetime value of a newsletter subscriber.

You will then be able to make those smarter decisions in regards to this marketing tool and how it can work for your business.

That’s it from Gemstar Marketing this week; we will see you again soon but remember to continue growing your business and make sure you always stand out from the crowd.


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