Predict Your Email Marketing Profits with My Ecommerce Napkin Math Formula!
Ever wondered how the big brands forecast out their email & SMS revenues every month?
It’s a lot of math, calculations & projections.
I’ll teach you how to do it using a pen & napkin.
And predict how much money you’ll make from every email you send.
As a former VP of Retention at the top brands, I had to project out revenues MONTHS in advance.
Even now, for our hundreds of clients, I’ve created projections.
Missed some, hit most of them.
But it’s an iterative process.
So if you’re looking to start thinking about how much you SHOULD and COULD make in a month, you just need a few numbers:
1) Segment size
2) Open rate
3) Click rate
4) Conversion rate
5) AOV
I have a nifty Excel sheet I use to run this for our clients.
👉🏻 Access The Google Sheets Formula 👈🏻
Super simple. But super valuable.
Simply create a Product Affinity Segment
(We discussed this in a past post)
This should consist of the following subscribers who are:
- Viewing the product
- Carting the product
- Started checkout with the product
- Clicked on the product
- Searching for the product
- Bought the product
- Predicted to buy the product
That number is the BEST AUDIENCE who wants the product you’re selling.
It may be a small number so be prepared.
Now that you have the best segment for your mailing, run that Excel sheet calculator.
Multiply by your email open rate, click rate, and conversion rate.
And then add in the AOV of your product.
As you can see, the sales may be VERY low.
Which means sending that email may not be worth it at all.
And that’s your BEST AUDIENCE.
What’s the point here?
No one wants to be sold but they love to buy.
So instead of focusing on sending emails “SELLING PRODUCTS”, send more emails related to what customers “WANT TO BUY”.
Watch the video above to see it all in action.
Key takeaway: send fewer emails selling and more emails personalized to what people want to buy.
You’ll better project out your sales.
And sleep easier at night.
Quick homework for this week:
1) Create an affinity segment for your next product.
2) Run the campaign calculator above (email us for access)
3) See if the campaign is worth sending.
Click here if you want to implement more 10-figure email & SMS strategies of the top brands in minutes, not month.
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