Create predictability in your business
To grow your ecommerce business, you need to have predictable growth channels. If you don’t know what an email subscriber is worth, you can’t create the predictability needed to invest in email as a channel.
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Determine the true ROI of your email list building efforts
If you don't know the value of an email, it's impossible to determine the ROI of marketing efforts designed to specifically increase your email subscriber count.
One of the dangers in ecommerce marketing is that you turn off channels that are actually profitable but you don’t realize they are. For example, you might test Facebook ads and those tests will show that your ROAS isn’t high enough. You might have a lot of people coming to your website, but too few people making a purchase. For this reason, you might turn off Facebook ads.
But what you don’t realize is that people love your store but aren’t ready to buy right now. So they add their name to your email list. If you don’t know how valuable your email subscribers are, you may not be taking this into account when buying Facebook ads and shutting down campaigns prematurely.
E-commerce success is math
There's an art to e-commerce. You have to have great products. You have to have a nice store. You have overseas chinese in usa data to have something you're passionate about. But you also have to be good at math. And in math, you have to assign value to every part of the journey.
It will help you with your partnership
When you know the value of each email subscriber, you can then know when partnerships are successful or not.
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Lets you know when to change the scale
Most e-commerce companies simply decide to increase or decrease their budget on a monthly basis. But the difficulty with all online businesses is that there are no key metrics. This means that you may not see sales growth and revenue scaling for several months.
You want to make informed decisions about when and how much to scale. And to do that, you need to base your decisions on immediate actions (conversion to sales) and leading indicators (like number of email subscribers and likelihood of them purchasing later).