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?