Kevin Hillstrom: MineThatData: Demand Per Full Email, or DPFE

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:

Jeff Taxdahl4:47 PM
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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MineThatData8:40 PM
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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Kevin Hillstrom, President, MineThatData

Kevin is President of MineThatData, a consultancy that helps CEOs understand the complex relationship between Customers, Advertising, Products, Brands, and Channels. Kevin supports a diverse set of clients, including internet startups, thirty million dollar catalog merchants, international brands, and billion dollar multichannel retailers. Kevin is frequently quoted in the mainstream media, including the New York Times, Boston Globe, and Forbes Magazine.

Prior to founding MineThatData, Kevin held various roles at leading multichannel brands, including Vice President of Database Marketing at Nordstrom, Director of Circulation at Eddie Bauer, and Manager of Analytical Services at Lands' End.

You may contact kevin at kevinh@minethatdata.com.

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September 28, 2011

Demand Per Full Email, or DPFE

2 comments:

Oh, Macy's ... Nicely Done!