Using revenue per recipient to inform your marketing strategies

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You will learn

Learn how to use revenue per recipient (RPR) in your marketing strategies to improve your campaign performance.

Before you begin

Ensure that your Klaviyo account is integrated with an ecommerce platform and that you have sent a campaign or flow so that you have data to generate revenue per recipient (RPR). You can also use a custom placed order metric to determine revenue per recipient as long as that metric uses $value as a property.

We recommend that you have at least a month’s worth of campaigns to get an accurate baseline portrait of RPR.

For more information on generating your RPR numbers, review our How to calculate revenue per recipient (RPR) guide.

Benefits of planning your campaign calendar with RPR

By establishing RPR expectations, you can productively plan each month and leverage discounts (or other incentives) more deliberately. For example, if you offer a coupon code of 10% in a campaign, you can calculate the RPR of this email and measure that against how much was spent to offer the discount, highlighting if the discount benefits your business or not.

You will also see what type of emails do best with your audience and update your content calendar to reflect such trends. RPR is important for campaign analysis to make sure your business achieves its revenue goals for each campaign. Stores in the top 25% of campaign performance are making about 2.5-3x the revenue per email.

Measure flow performance with RPR

Similarly, you can measure flow performance with this calculation to check that your emails hit their full potential to drive business. Assess which emails within the flow perform well and which are lacking. You can focus on characteristics within profitable flows to make others with a low RPR more successful.

For example, for businesses making $1- $1M in revenue and have an average order value of less than $28, the top 25% of those businesses are making at least 81 cents for each abandoned cart email they send. This 81 cents is their RPR for that specific flow.

If you find that one of your flows is performing below-average, run A/B tests to see where you can improve. Consider testing different subject lines, timing, number of emails, and more. For more information on measuring flow performance, check out our guide to performance benchmarks for flows.

Improving RPR

Analyzing RPR helps you iterate and understand what your audiences respond to, and conversely, what is not working for your business.

If your RPR is lower than desired, consider the following changes:

1. List clean for campaigns, or send flows to a more specific, engaged audience based on their preferences and using flow filters.

2. Use segmentation to send campaigns to a highly engaged audience, and continue checking the level of engagement with segment engagement reports.

3. Follow email trends of what works best in your emails and update your content calendar to improve campaigns that aren't performing as well as you'd like.

4. Make sure your incentives help more than harm your business (e.g., if a 10% discount creates a marginal profit, it may not be worth the incentive).

5. Use your overview dashboards and custom reports to find out what is working for your business and what needs to be adjusted.

6. Knowing that RPR is tied to conversion rate and order size, experiment with different ideas to boost email performance and adjust your current email strategy to leverage growth through email.

Use RPR to inform your sending strategy

In addition, use your engaged list and RPR to plan your month’s campaign strategy.

Based on your RPR rate, make changes that reflect what seems to work for you. If your RPR is lower than expected, consider the following:

1. How often are you messaging subscribers currently?

2. What specific characteristics, styles, and blocks are working best in your emails and SMS messages?

3. How engaged are the audiences receiving your emails?

4. Are incentives (e.g., discounts) working in your emails or not?

5. Are subscribers even receiving your emails?

You can likewise find your expected email revenue by multiplying your email list size by the number of campaigns and then multiply that number by your RPR.

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