What is Email Subscriber Lifetime Value?
Email Subscriber Lifetime Value is an email marketing metric that determines the average value of a person who joins a company’s email list for the entire duration of the subscriber’s time on that email list.
Many marketers use this metric to better understand how much they can spend to acquire a new subscriber and still have a healthy ROI (see Email Subscriber Acquisition Cost ) or to better understand the performance of their marketing efforts in general.
The formula for tracking Email Subscriber Lifetime Value is as follows:
Email Subscriber Lifetime Value = (Average Revenue Per Subscriber (ARPU) x Average Lifetime of a Subscriber) – the Cost to Serve Them (COGS)
For example…
$750 = ($500 x 2.5 Years) – $500
To get the most helpful results with that formula, plug in numbers specifically for each of the following sources so that you can see which lead sources pulls the most valuable subscribers for your business.
- Organic Subscribers
- Co-Reg Subscribers
- Incentivized Subscribers
- Sweepstakes
- Adwords
- Guest Blog or Podcast Content
- Partnerships