SlideShare a Scribd company logo
Establishing an ROI
Gregory Wright
American Institute of CPAs
Member Communications Manager
@G_J_W
gwright@aicpa.org
What is the value of a subscriber?
How do I track product purchases?
What is engagement?
Which metrics are best?
What does all this mean?
3 things you need
e-Newsletter
Product tracking
Math
Ad
Ads
Annual revenue figures you will
need:
1. Ad sales
2. Product sales
Track product purchase conversion rate
Append a code to product URL
• IBM Digital Analytics (Coremetrics)
• Google Analytics
• Ecommerce platform
http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Au
ditPreprationandPlanning/PRDOVR~PC-APARAI/PC-APARAI.jsp
http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Au
ditPreprationandPlanning/PRDOVR~PC-APARAI/PC-APARAI.jsp
?cm_mmc_o=2V-1KCjC5A_kbgzfbBECjCnivSiNCjC-V-q-G
Let’s do some math
1. Total your revenue
2. Divide by number of
subscribers
3. Equals the Value of a
Subscriber
$500,000 (external ad sales)
+ $200,000 (product sales)
= $700,000 (total revenue)
/ 400,000 (subscribers)
= $1.75 (value of a subscriber)
User who actively
subscribes to e-newsletter
• IS NOT auto opt in/ passive
user
• IS actively engaged with e-
newsletter
• IS more likely to purchase
product / click an ad
How do you define engagement?
Open rate
Click-through rate
Product purchase conversion rate
More math:
0.30 (open rate)
X 400,000 (subscribers)
= 120,000 (active subscribers)
$700,000 (total revenue)
/ 120,000
= $5.83 (value of an active
subscriber)
3.33x higher than
$1.75 (value of a subscriber)
What can I do with this?
Cost per active subscriber acquisition
PPC/CPA ads
Marketing campaign
• Direct mail
• Trial campaigns
• Banner ads in other newsletters
Apply to other communications
• Facebook
• LinkedIn
• Twitter
Establish an ROI for your e-newsletter

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Establish an ROI for your e-newsletter

  • 1. Establishing an ROI Gregory Wright American Institute of CPAs Member Communications Manager @G_J_W gwright@aicpa.org
  • 2.
  • 3.
  • 4. What is the value of a subscriber? How do I track product purchases? What is engagement? Which metrics are best? What does all this mean?
  • 5. 3 things you need e-Newsletter Product tracking Math Ad Ads Annual revenue figures you will need: 1. Ad sales 2. Product sales
  • 6. Track product purchase conversion rate Append a code to product URL • IBM Digital Analytics (Coremetrics) • Google Analytics • Ecommerce platform http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Au ditPreprationandPlanning/PRDOVR~PC-APARAI/PC-APARAI.jsp http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Au ditPreprationandPlanning/PRDOVR~PC-APARAI/PC-APARAI.jsp ?cm_mmc_o=2V-1KCjC5A_kbgzfbBECjCnivSiNCjC-V-q-G
  • 7. Let’s do some math 1. Total your revenue 2. Divide by number of subscribers 3. Equals the Value of a Subscriber $500,000 (external ad sales) + $200,000 (product sales) = $700,000 (total revenue) / 400,000 (subscribers) = $1.75 (value of a subscriber)
  • 8.
  • 9. User who actively subscribes to e-newsletter • IS NOT auto opt in/ passive user • IS actively engaged with e- newsletter • IS more likely to purchase product / click an ad
  • 10. How do you define engagement? Open rate Click-through rate Product purchase conversion rate More math: 0.30 (open rate) X 400,000 (subscribers) = 120,000 (active subscribers) $700,000 (total revenue) / 120,000 = $5.83 (value of an active subscriber) 3.33x higher than $1.75 (value of a subscriber)
  • 11. What can I do with this? Cost per active subscriber acquisition PPC/CPA ads Marketing campaign • Direct mail • Trial campaigns • Banner ads in other newsletters Apply to other communications • Facebook • LinkedIn • Twitter