Let's say that, somehow, you find a magical formula that allows you to increase loyalty for just one year, by 10%.
What impact does that effort have?
Well, you get $1.9 million in demand in the year where the improvement happens.
But you also cause more customers to purchase, and those customers act like "compound interest".
In year two, demand is $0.8 million greater.
In year three, demand is $0.6 million greater.
In year four, demand is $0.3 million greater.
In year five, demand is $0.2 million greater.
So you get $1.9 million from a one year, 10% increase in loyalty ... and you get $1.9 million in years two through five ... compound interest!
Now, if you have some magic formula for improving customer loyalty, well, you'd already be implementing the strategy, right? I mean, you wouldn't hold that in your pocket so that you could use it three years from now!!
But if you stumble across something, rest assured that you get the short-term benefit of the strategy, and you get a "compound interest" effect as well.
Advertising is largely a rental platform ... you rent space or paper or a click, and it's your job to demonstrate that you made a goo...
Look at the first four rows of our life table (values of 0/1/2/3). These are the first 12-15 weeks after a customer buys for the firs...
In our simulation, we learn that there are different definitions of Carrying Capacity. If the CFO demands that we maximize profit o...
Just $0.99 folks (click here) . The new Marketing Leader has a short window to make a difference, to set a tone for the upcoming year...