Email marketing is still the number one method to drive sales and likely will be for the foreseeable future.
Whether your business is online, brick and mortar, or both, it's important that you have a clear insight into how much revenue you can predict from your list.
Email marketing is still the #1 channel to drive sales and will be for the foreseeable future. Invest in your email marketing strategy and you will see success.
I've been running a marketing agency since 1998 and within that span of time I've encountered a handful of clients that actually could predict their revenue if they were to press "send" to their list.
When I say a handful, I mean one hand-full - like maybe 5 clients. So, if you're reading this right now, I think it's safe to say that you don't know what you'll earn if you press that magic button that sends the email out to your list.
Today, we're going to fix that as I've got a tool I've been using with my clients that I have never shared before, until today.
Whether you own a small business, if you're employed by one, or if you also run an agency like I do, this tool is going to be your new best friend. 🙂
The tool is called The Revenue from Email Forecasting Tool. It will provide you with a fairly accurate forecast of what you can expect to generate in revenue from your email list.
You can plug-in different price points, open rates, even click rates to see exactly what would happen based on variations.
This is really valuable because now you have an idea of what you can expect to earn before you send out that email promotion, sale, or product launch. Furthermore, you can test price points and purchase rates to get an idea of what you can see in revenue.
I hope you'll agree that this is pretty darn slick! I selfishly kept this to myself and my retained clients for years and years up until now. Keep reading below and you'll have free access to this tool.
Of course, should you be interested in working with my agency and I, please click here to schedule a free strategic consult.
How to predict revenue from your email list (explained)
Before I just hand over this powerful tool for you I want to first define a few key points here that are important for you to know. That way you'll be set up for the greatest possible success.
Open rate: The open rate is a metric that reports how many people have opened or viewed your email. The common method for how an ESP tracks whether the email was opened or viewed is by having a tracking pixel inside the email. Once the pixel is loaded, it will report that the email has been viewed or opened. Open rates are not 100% accurate and should always be used as a guiding tool and not a precise measurement.
Inbox loss: Inbox loss is a calculated number, or percent, of emails that fail to reach the inbox. Typically these emails will end up in the promotions tab, bulk mail, junk, clutter or spam folder based on your email client (such as Gmail, Mac Mail, Outlook 365, Yahoo, etc.).
Click rate: The click rate or click-through rate (CTR) is the measurement of email recipients that click on the link within the email and are perceived to have seen the content/offer your link has directed them too. Like the open rate, this metric is not 100% accurate and should be used as a guide. The click-through is used as a measurement of effectiveness for your email campaign and the copy/content within it.
Purchase rate: The purchase rate is the number of people who purchase your offer. This is a measurement that can help predict how effective your pricing, your offer and your copy is.
Return rate: The return rate is something that is rarely discussed but should always be built into the equation for online retailers as well as larger volume email lists. The return rate is the number of people that purchase your product/service and then return it after purchase. I typically account for 1% return rate which you'll want to remove that population from your purchase rate to get a more accurate purchase rate and thus revenue forecast.