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Revenue per recipient or revenue per customer? Help needed please

  • 9 April 2022
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Hi All,

 

Is Revenue per recipient also tells us how much we can spend on lead gen ads? for instance last month our RPR from emails were $1.19, does that mean this is something we should spend on new subscribers acquisition via paid ads? Is RPR which klaviyo tells is after all the marketing expenses/taxes etc?

Aplogise if i am confusing Revenue per recipient with revenue per customer, Klaviyo only shows RPR so i am assuming RPR is also Revenue per customer also?

 

I have read this https://www.klaviyo.com/blog/revenue-per-recipient#:~:text=Revenue%20per%20recipient%20tells%20you,also%20help%20you%20get%20better. it doesnt tell if RPR is a right metric to use for projecting customer acquisition?

 

Can someone please guide about this metric.

 

Thanks,

Sunny

 

 

 

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Best answer by Dov 11 April 2022, 16:14

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Userlevel 7
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Hi @Sunny,

Thanks for sharing this question with the community.

I noticed the blog article you linked is quite old, in case you haven’t came across our latest article on RPR, I’ll share that with you here.

In terms of your question, RPR is not meant to project customer acquisition. Rather, the RPR is meant help you better understand what your audience for an email send are receptive to. Once you have this figure in hand, you can make tweaks to your list, email content, adjust your sending cadence and more to maximize RPR.

The Revenue per customer, on the other hand, also takes into account time as a variable. Revenue per customer will track the revenue lifecycle of the customer as they make purchases from various flow and campaign emails.

We have some strategies and recommendations specifically for RPR in our documentation (including strategies on improving RPR and next steps) here. I recommend you check that out for the most up-to-date information on this topic.

You may also be interested to look into Klaviyo’s predictive analytics to give you further insight into your customer’s purchasing habits and predictive behavior.

I hope that’s helpful and thanks for being a member of our community.

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