Definition
Customer equity answers: what is your email list worth as a business asset? It is calculated by multiplying the number of active subscribers by their average lifetime value. For example, 50,000 active subscribers with an average LTV of £100 each gives an email asset worth £5 million. This valuation is useful for justifying email programme investment, comparing the value of list growth efforts, and understanding the financial impact of churn.
Related Glossary Terms
A/B Testing
A/B testing in email marketing is the practice of sending two variations of an email to a small sample of your list to determine which version performs better before sending the winner to the remaining subscribers.
Announcement Email
An announcement email is a dedicated campaign that communicates a specific update, milestone, or change to subscribers, from product launches and feature releases to company news and events.
ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) is a metric that measures the average revenue generated per email subscriber over a specific period, used to evaluate list value and campaign effectiveness.
Attention Rate
Attention rate is the percentage of email opens that last longer than 5 seconds, distinguishing genuine reads from passive opens, preview-pane views, or Apple MPP auto-loads.
B2B Email Marketing
B2B email marketing targets business professionals and organisations with longer sales cycles, educational content, and relationship-driven campaigns compared to B2C email.
B2C Email Marketing
B2C email marketing focuses on sending targeted promotional and transactional emails to individual consumers, emphasising personalisation, urgency, and direct response.