What is Revenue per Subscriber (RPS)? – Formula and Ways to Increase RPS [With Examples]

What is revenue per subscriber (RPS)?

Revenue per email subscriber, as the name suggests, measures the average revenue generated by your individual subscriber. It is an email marketing metric that determines the average monetary value of a subscriber on your email list.

Your campaigns' performance and the level of commitment of your existing subscribers can be measured with this email marketing metric.

How to calculate revenue per subscriber?

To calculate revenue per email subscriber (RPS), divide the ‘total revenue’ generated in your email marketing campaign by the ‘total number of subscribers’ on your email list.

RPS or revenue per email subscriber is measured as a currency value, which means you’ll get your answer in dollars, or your preferred currency.

Formula for calculating revenue per subscriber

RPS formula
RPS Formula

Real-life example of revenue per subscriber

Let’s look at revenue per subscriber as an example: 

For instance, you are running an email marketing campaign for your upcoming webinar. You have 500 subscribers on your email list and you’ve generated $2000 in revenue from this campaign. 

By plugging these figures in the formula, you’ll get RPS: 2000/500 = $4

What’s considered a good revenue per subscriber (benchmark)

There isn’t just one specific RPS you should aim to achieve. Revenue per subscriber relies on several factors and your total email marketing revenue is just one of those factors.

You should aim to increase your overall email campaign revenue and cut down on costs to achieve a good revenue per subscriber. The revenue per subscriber may be as low as $0 and can get a lot higher.

Ways to increase your revenue per subscriber

  • Put efforts to increase revenue: The revenue generated from your email marketing campaign directly affects revenue per subscriber (RPS). Higher the revenue, the higher the RPS.Go through this 5 Step Guide to Increase Email Revenue.

Also Read: Related Metrics

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