Top Five Uses of Email Receipt Data for Long-Term Investors
Why email receipt data?
Email receipt data is often the most helpful type of alternative data for long-term investors. It offers unparalleled granularity, usually down to the item level, and the ability to track users through their entire customer lifecycle. This type of analysis is key to supporting the deepest investment thesis.
What is email receipt data?
Generated from access to a panel of de-identified / pseudonymized user inboxes - our first-party Edison email receipt panel is composed of over 1 million users. Once in the panel, a user's historical purchases can be accessed, as well as any future purchases while that user remains in the panel. The data can be parsed at order level - inclusive of details such as order total, tax, and discounts, but can also be broken down into the items that comprise an order, with item names, prices and quantities.
How are long-term investors currently using email receipt data?
Email receipt data produces the deepest and most differentiated analysis for long-term investors. Key use cases include:
Cohort Analysis - Customers can be partitioned into cohorts using first purchase dates and other metrics, and then followed through their entire life cycle across metrics like retention and spend. Long-term investors use this data to compare cohort quality over time and model customer lifetime value.
Basket Size and Pricing - Companies often disclose average order values, but offer limited information on their drivers. Email receipt data can decompose the drivers of AOV and give insights into whether customers are building larger baskets or if pricing and/or mix shifts are the key drivers.
Competition - User purchasing behaviors can be observed over a number of different merchants, offering insights on cross shop and share shifts in real time.
Strategic Initiative Tracking - Item level granularity gives the opportunity to track sales and attach rates of key products or services. User demographics data can also validate management efforts to capture additional addressable markets across age, gender, and incomes.
Promotions and Loyalty Tracking - Order level discounts, and in certain cases participation in loyalty programs, can be parsed from email receipts, answering key questions on promotional intensity and customer stickiness.
The versatility to cover a number of narratives, ranging from unit economics to competition, make this data incremental to any long term investment process. To learn more about how YipitData is helping long-term investors, click here.
