It’s important to understand the revenue per recipient number on the Klaviyo Performance Dashboard, even if it may not look like much at first. This number is essential to know the health of an email marketing plan, as it takes into consideration the size of the audience, the effectiveness of campaigns, and the overall deliverability of emails.

However, it cannot be considered a fundamental metric when reviewing a whole account and all the data together, as not every broadcast and flow is designed to sell, and it is normal to have emails with a low or zero RPR. Such as a hype email, survey, or review request, among many others.

Calculate RPR Revenue Per Recipient for Email Marketing

The RPR calculation formula is based on the amount of revenue that your email has generated, divided by the number of emails you’ve sent (unique recipients). When doing this, remember to take out the emails that bounced.

Let’s use Shoes Fake Company (SFC). Let’s say SFC sent 220,000 emails and 2000 bounced. That leaves 218,000 successfully delivered emails. The revenue generated from that send is around $50,000. The bolded amounts are the numbers that we need to calculate RPR.

So let’s do the math.

50,000 / 218,000 = $0.22 RPR

There are several variables that can influence what your revenue per recipient should be:

Segmentation plays a large role, as it helps to cut down the amount of emails sent to those who are unlikely to make a purchase.

You should also consider excluding recent purchasers, unengaged subscribers, and those in welcome sequences or cart/checkout abandonment flows.

Additionally, the type of inventory, the importance of education and nurturing in conversions, and the importance of community and awareness to the brand can all impact revenue per recipient.

Tracking revenue per recipient is a great way to determine the optimal frequency for your campaigns, as well as maintain a healthy email list.

For example, one client of ours had to cut their email frequency in half in order to maintain their revenue and lower operational costs and freeing us from having to concentrate on whatever the next campaign was, allowing us to spend more time testing and optimizing campaigns with meaningful content.

When used in tandem with engagement metrics like open rate and click rate, revenue per recipient is a solid KPI to strike the right balance between a healthy email database and one that drives strong revenue. It’s the link between the two ends of that spectrum that every email marketer needs to pay attention to in order to be successful in the long term with email, and can help you dig out of deliverability holes and cut down runaway email volume.

If you need assistance optimizing your revenue per recipient in Klaviyo, don’t hesitate to reach out!