Question

Suppose I send an email with the following characteristics: 25% open rate; 5% click-through rate (calculated from total delivered emails); 20% conversion rate; $100 average order value. How much revenue can I expect this email to generate if I send it out to my entire email list of 1000 members?

Answer 1

$250

Explanation:

Email Open rate = 25%

Email click through rate = 5%

Conversion rate = 20%

Average order value = $100

Combining these factors together, total expected conversion per email:

Open rate * Click through rate * Conversion rate * average order value

= 0.25 * 0.05 * 0.20 * 100 = $0.25

Email list consists of 1000 members. So the total revenue expected = $0.25 * 1000 = $250

In other words, sending the email to entire email list is expected to generate $250.