RAAK_Blog-Header_Technology

Revenue Per Email Measurement case

In one of our previous posts, “Why you should start calculating your Revenue Per Email today”, we told you all about the value of the RPE metric. And how to calculate it in order to evaluate and optimize your email marketing performance. Today, we bring you a case study to illustrate what RPE is all about. 

The case: a direct response email for Ello Mobile, a Belgian mobile phone operator. We analyzed an A/B split test in headline copy and illustration for a member-gets-member campaign. And the email interactor rates didn't lie…

•    Email version A got an interaction score of 13,6% 
•    Email version B stranded at 11,6%

If we would only take email scores into consideration, results were clear and the decision was easy: let's stick with version A.

But we also analyzed the sales conversion for the test by tracking the clicks up to the order pages.
The conversion rates there were:
•    Email version A scored 0,032% sales conversion
•    Email version B scored 0,031% sales conversion

Okay, tiny advantage for version A. So the investigation went on…

Next, we took direct sales revenue into account:
•    Email version A generated an average 35,4 euro per sale
•    Email version B generated an average 48,2 euro per sale

These figures resulted in the following Revenue per 1000 Emails Sent (RPME):
•    154 euro revenue for version A
•    174 euro revenue for version B

This means a 13% growth in RPE through email version B, although it brought a significant decrease in email interaction rate.

Here's an overview of all figures:131213

Conclusion

RPE measurement involves a bit more work than calculating open and click-through rate. But it's a much better criterion to measure email performance by. When testing, you might think that the version that generates more clicks is likely to yield more revenue. But as you can see in the example above, that's not always the case...

Posted on
Dec 13, 2013