The document discusses calculating lifetime value (LTV) of email subscribers and how LTV can be used. LTV varies by company but averages $27.18 per subscriber over 3 years. LTV can justify email marketing budgets and acquiring new subscribers. Training 46 marketing teams in LTV led to acquiring over 75 million new subscribers generating $477 million in annual profits. One retailer placed email signup terminals in stores getting 300,000 new emails per month worth $8.26 each, justifying the costs. LTV gives marketing teams power to grow profits through various strategies.

1. Arthur Middleton Hughes The Database Marketing Institute May 3, 2011 May 3, 2011

5. The e-mail produced 79% of its sales in the store and only 21% online The multiplier is 3.76 Multipliers vary from 0 (no sales beyond the shopping cart) to 6 or more.

7. Note: each of these 4,330,913 subscribers is worth $27.18 in 3 year profit. Even though most of them will leave, and most will buy nothing.

14. One clothing retailer with 900 stores scattered these terminals inside his stores with compelling signage. To enter your e-mail, slide your credit card through these terminals, and a keyboard appears. You enter your e-mail. He got 300,000 new e-mails per month! They were worth $8.26 each. LTV justified the costs for the system.

15. They boost not only acquisition, but also the open rate.

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