And while we're on the topic, how do you calculate the value of any of your mailing lists?
Understanding the actual monetary value of your lists can help justify your ad spend. While this isn't a metric that Klaviyo reports for you, we have a super quick hack to help you calculate your list value.
Trust us, this one's a game changer.
Let’s look at some real business calculations first.
Jill works for Company A and spent $8,000 to build a list of 5,079 leads. Without knowing the value of the list, she wasn't sure if the $8,000 in ad spend was justified.After calculating the list value, Jill determined that it was worth $1.7M with a total ROAS (Return On Ad Spend) of 212.5.
Gabe works forCompany B and spent $884.83 on a lead form ad, which helped him build a list of 940 leads. He calculated the value of the list to be $16,797.76, which equates to a ROAS of 18.98.
In this case you could say that both Jill and Gabe's campaigns were successful, which made their bosses pretty happy, and maybe even got Jill and Gabe a nice Christmas bonus.
Being able to calculate the actual (not perceived) value of a list is a key metric to help you allocate your ad spend.
You mayfeellike your ad spend was justified, but in eCommerce, we don't deal with feelings, we deal with facts and data. Lots of it.