November 12, 2015

Download The Simulation Spreadsheet - Do Your Homework

Ok, I'm trusting you here with something ... the spreadsheet we're using in our examples.

I know, I know, vendors are going to hop on and download the spreadsheet and in four weeks, they will be selling you a comparable product. Pay attention to the companies that do that. Ask them how they calculate the organic percentage, the metric that is the driver of the entire spreadsheet. If they cannot answer that question to your satisfaction, do not work with them.

Back to business.

Here's my homework assignment for you - please complete your homework assignment over the weekend.

Play with the scalars in cells D6 - D15 ONLY. If you want to cut marketing spend by 50% in a segment, enter the value 0.50. If you want to double marketing spend in a segment, enter the value 2.00.

Stay away from cell D17. That's for customer acquisition. We'll get to that cell next week.

Your homework assignment is to optimize marketing spend across the housefile segments ... those with recency = 0-12, 13-24, 25-36, 37-48, 49-60, and 61+ months.

Go to cell P28. This cell states profit in Year 10. As you make your investment changes, try to get cell P28 to be as big as possible.

What combination of investment changes yields maximum profit in Year 10?

Send me an email ( with your questions.

We'll talk more on Monday.