What percentage of your revenue should come from email?

Hey there, it’s Patrick.

I wanted to make sure we’re on the same page about a key benchmark we look at for all our brands: the percentage of total revenue that’s driven by email and SMS.

Our standard for our clients, after running the math last year, is about 35% of top-line revenue.

That’s the sweet spot.

Now, you might think more is always better.

But oftentimes, when we see a brand doing 40% or more from their email list, it’s actually a red flag.

It tells me that you’re over-indexed on your existing customer base and that new customer acquisition has significantly slowed down.

It means you’re just squeezing cash out of the customers you already have, not growing the pie.

So here’s a quick exercise.

Go into Shopify and look at your total revenue for the last 30 days. Then, look at what Klaviyo is reporting for that same period. What’s the percentage?

If you’re sitting below 30%, there’s a huge opportunity to improve your retention.

If you’re sitting above 40%, it might be time to ask if you’re too dependent on your existing list and need to focus more on top-of-funnel growth.

Does that make sense?

Talk soon, Patrick

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