September 28, 2011

Demand Per Full Email, or DPFE

Otherwise known as DPFE, "Demand per Full Email" is simply a metric that standardizes the amount of space an item is offered in an email campaign.

Imagine an email campaign that generates $0.20 per customer.  The campaign has four items featured.
  • Item #1 = 60% of the space, $0.10 per customer.
  • Item #2 = 20% of the space, $0.05 per customer.
  • Item #3 = 10% of the space, $0.03 per customer.
  • Item #4 = 10% of the space, $0.02 per customer.
We calculate DPFE as follows:
  • Item #1 = $0.10 / 0.60 = $0.167 DPFE.
  • Item #2 = $0.05 / 0.20 = $0.250 DPFE.
  • Item #3 = $0.03 / 0.10 = $0.300 DPFE.
  • Item #4 = $0.02 / 0.10 = $0.200 DPFE.
Now, obviously, there are problems with the methodology.  That being said, don't you want to know that the featured item was actually the least productive item in the email campaign?

2 comments:

  1. What exactly is the mechanic used here to determine the value for each item? How are you deciding how to attribute success to a given item, as opposed to all the others?

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  2. You have the sales of each item from folks who click through each item, and you have all other sales that are generated from all other clicks on all other links in the email campaign. Each link is assigned "space", each image, however, is assigned considerably more "space". The rest is the math outlined above.

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