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Questino on RPR and how to use it in real example

  • 19 April 2022
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Yes I read https://help.klaviyo.com/hc/en-us/articles/360034724572-How-to-Use-Revenue-per-Recipient-Benchmarks-to-Plan-Sales-Performance#overview0 


My question is how to plan each month and leverage discounts, in the documents, it was not explaning enough, could someone elaborate?

For example if my RPR for my campaign is $1.0, what does that mean to my discount strategy? How much discount can I give? A detailed example will be very helpful

 

Thx

R

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Best answer by JNorm 26 April 2022, 01:20

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Hi there @Rara,

This would depend on a lot of factors. 

I don’t think the answer is black and white nor do we prescribe a specific RPR / discount ratio. It would all depend on your own business and marketing strategy as there are things to consider such as your margin, what's your ad cost, etc. I think the question boils down to how much of a discount can you afford and RPR is one component to help you determine what you can afford to give “away”. You’d also have to take into account other factors that take away from your overall budget i.e. how much your spending on  other 3rd party integrations, recurring costs, your acquisition cost per customer.

At the end of the day, I would recommend working with a Partner or an agency to figure out what works best for your business.

 

Thanks!
Alex

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 RPR is one component to help you determine what you can afford to give “away”.

 

Could you elaborate how does RPR help you determine what you can afford to give away with specific emaple? @alex.hong 

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Hi @Rara,

That would be a good question to talk through with your team who handles your finances. It just comes down to a question of how you / your business will allocate funds.

 

 

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Using RPR to measure the overall effectiveness of your email flows and campaigns is likely a better strategy here than solely using it as a lever to determine discount effectiveness. For instance, what if you offer no discounts, does the RPR become obsolete? It still remains as a baseline indicator of success for that flow, campaign or account. I think it better from a business perspective for discerning discount effectiveness to quantify the gross sales provided through a coupon code minus the total dollar value in discounts for that code over a given period of time (as well as subtracting any ad costs surrounding the offer), that way you can see “apples to apples” how effective your code and promotion is for your bottom line, vs relying on klaviyo metrics to tell you. Just my thoughts though. RPR is a baseline indicator of message efficiency, not a crystal ball into discounting, unfortunately 🙂  

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@JNorm Thanks for the answer. Is RPR a valid bench mark metric? The reason I am asking is because each business probabaly have a very different  audience size, therefore the RPR can be heavily influenced?

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RPR is a valid metric, but the benchmark should be made from your historical data and then tested for optimization. Yes audience size plays a part, but so does segmentation and list hygiene strategy. Your RPR will be higher if you segment well and clean your list often. Make sense?

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