How valuable is your email list?
I was speaking at an event in Seattle for NWEN at the Graham and Dunn offices and downstairs is the restaurant formerly know as Waterfront – now Aqua. It’s part of the El Gaucho ownership and like El Gaucho, it’s awesome (and spendy).
We were chatting as a group and one of the wait staff asked if I’d like to join their Revelers Club. “What is the club?” I inquired, knowing it would be an email list and form, and…ta da…it was an email list. But much to my surprise, it came with a $50 gift card. That was a surprise.
But not really. Think about the cost of a promotion and the value of an email list. Today companies are willing to give a company like Groupon a huge premium to send an email to their email list. Here are the economics:
Those economics make a $50 gift card sound like a great deal, when you figure the cost of the plastic card and mailing. So what’s the value of an email? For the El Gaucho Group, it’s $50. Now we’ll have to see how well they stay in touch with the list.