Revenue per Recipient (RPR) measures the success of a campaign or flow. In this article, you will learn how to calculate RPR, what this number means for campaign and flow performance, and how to improve going forward. RPR is a great way to analyze performance and set a benchmark for growth.
Before You Start
There are two important tasks to accomplish before getting started:
- Integrate your account with an ecommerce platform. For information on how to integrate, check out our Ecommerce Integrations category.
- Send a campaign and/or flow after integrating your ecommerce platform so that you have data to generate RPR.
Calculating Revenue Per Recipient
You can find RPR in your dashboard; however, you can also calculate it yourself from campaign reporting. The calculation for RPR is as follows:
The resulting number from this calculation will tell you how much revenue you gained per recipient for a given email. This, in turn, will show you how well your emails perform in practice and allow you to strategize to boost success in the future.
Finding Historical RPR for Campaigns and Flows
To find the historical RPR for a given campaign, head to your Analytics Dashboard by selecting Dashboard > Analytics.
From there, select Add Card in the upper right-hand corner. A popup will prompt you to choose a metric, add a modifier, and select how you want to visualize your data.
Choose Revenue Per Recipient as your metric.
Then select your choice of four ways to view the data (i.e. as a table, bar graph, line graph, or number). In the example below, we choose to visualize it in table form:
Click Save and your resulting Average Daily Revenue Per Recipient will appear in a table format within your card.
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 goals in revenue for each campaign sent. Stores in the top 25% of campaign performance are making about 2.5-3x the revenue per email.
Measuring Flow Performance with RPR
Similarly, you can measure flow performance with this calculation to check that your emails are hitting their full potential to drive business. Make sure to 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. Thus, this 81 cents is their RPR for that specific flow.
If you find one of your flows is performing below-average, run some 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.
How to Improve RPR
Analyzing RPR will help 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:
- List Clean for campaigns, or send flows to a more specific, engaged audience.
- Use segmentation to send campaigns to a highly engaged audience, and continue checking the level of engagement with Segment Engagement Reports.
- 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.
- Check to make sure your incentives help more than harm your business (for example, if a 10% discount creates a marginal profit, it may not be worth the incentive).
- Use your Performance Reports and Activity Map to find out what is working for your business and what needs to be adjusted.
Knowing that RPR is tied to conversion rate and order size, you can experiment with different ideas to boost email performance and adjust your current email channels to leverage growth through email.
Use your engaged list size and RPR to plan your month’s campaign strategy. Based on the calculation, make changes that reflect what seems to be working for you.
If RPR is lower than expected, consider the following questions:
- How often do I need to email?
- What specific characteristics, styles, and blocks work best in my emails?
- How engaged is the audience I send to?
- Are my incentives worth the cost of offering them via email?
You can likewise find your expected email revenue by multiplying your email list size by the number of mailings and then multiply that number by your RPR.