This document discusses how a large opt-in subscriber database can be used for brand activities, e-commerce, and campaign management. It outlines that the average cost of acquiring a subscriber is Rs. 30, with the next 6 million subscribers expected to cost between Rs. 10-60 each. It estimates that 20% of subscribers will buy at least once a year. Finally, it calculates that the lifetime value per subscriber in gross merchandise value is around Rs. 1820, resulting in a lifetime value per subscriber of Rs. 370 and a customer acquisition cost of less than Rs. 30.

1. What can you do with a large profiled opt-in subscriber base?
Brand Activities E-commerce
Sample Promotions Product Launch FMCG Subscription
Discount/Rebate Deals on Products
Announcements Dipsticks/Surveys Catalogue
Campaign Management Platform
Internet Mobile Offline Order/
Response
Analytics
Email SMS MMS Video Direct Mail Samples Managemen
t
Opt-in Profiled Consumer Database
© 2010 Gingersoft Media Pvt. Ltd 1

2. Subscriber Acquisition Cost and LTV
 Average Cost of acquiring a subscriber for the next 6 mil subs: Rs 30
– 4 mil subs acquired so far at no cost
– Next 2 mil (4 to 6 mil) subs @ Rs 10 per sub
– Next 2 mil (6 to 8 mil) subs @ Rs 30 per sub
– Next 2 mil (8 to 10 mil ) subs @ Rs 60 per sub
– Historically, net viral factor on mGinger indicates: every sub gets one more. So this should further get
our costs down.
 We estimate that 20% of the base would buy at least once in a year
– Historically, 10% of the base targeted with SMS-back campaigns responded with an intent to purchase
(to our advertiser-run campaigns). But sms-back campaigns were only 30% of all the campaigns run,
hence there is an upward adjustment to 20%.
 70% of the subscribers would exist for at least 4 years on the base (based on the last 4 years
data, we lose 10% every year), projecting beyond this is difficult due to the company’s short
existence
 Assuming an average ticket size of Rs 2000 ($45) increasing every year for the next 4 years
by Rs 500 ($11), the subscriber LTV in GMV is around Rs 1820 ($40). With a Gross margin of
20%, the LTV per subscriber is around Rs 370 ($8) and a CAC of less Rs 30 ($0.8)
© 2010 Gingersoft Media Pvt. Ltd 2