Metrics > Customer Payback Period
Customer Payback Period
Definition: Email Open Rate measures the percentage of recipients who open an email.
Formula:
Payback Period = CAC / Monthly Revenue Per Customer
Why It Matters:
A low open rate suggests ineffective subject lines or email timing.
How to Improve:
- Reduce Customer Acquisition Cost (CAC)
- Increase Average Order Value (AOV)
- Improve customer retention strategies
Relevant Integrations:
- Google Analytics
- WooCommerce
- Shopify
Example Calculation:
If CAC is $500 and the monthly revenue per customer is $100, then:
Payback Period = 500 / 100 = 5 months