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I love this post - it gets across a fundamental concept that pretty much anyone can understand, which is non-obvious. What I love, that other's here seem to gr
by icc97 9y ago
I love this post - it gets across a fundamental concept that pretty much anyone can understand, which is non-obvious.
What I love, that other's here seem to grumble about, is that he's not using any specific terminolgy. He doesn't mention 'churn', he doesn't mention 'geometric' series, he only has one '=' in the whole text.
You can print out this article (ignoring the python bit) take this down to your local baker/cafe/<insert non-tech business owner> that's full of stupid marketing billboards but sucks at customer service and show it to them. There's a good chance they'll understand.
Frankly I liked it because I could easily follow his logic without slowing my reading. There was parity between my understanding speed vs my reading speed.
Plus no-one here seems to be grumbling that he's wrong, just that they can say it in a different way.
- deleted 9y ago[deleted]
- Grustaf 9y agoWhat exactly is it that the local baker will understand? That he should avoid losing clients?
- jliptzin 9y agoThat maybe he should work on improving his cupcake recipe instead of expensive billboards, hiring a sales team, and wasting money on facebook ads.
- Grustaf 9y agoDon't most people know this without math, that acquiring new customers is more expensive?
- robinjfisher 9y agoYou might be surprised. It's fairly trivial to find out where I work during the day but we are representative of the recruitment industry and so much effort is put into attracting and sourcing candidates (generally via expensive job boards). Because the cost tends to be less visible on the ground, there is no realisation around the cost/benefit ratio when compared to keeping existing candidates happy and using them.
- dennyis 9y agoLocal business owners are hounded by marketing companies everyday promising the moon. Marketing seems like the great Panacea, but no one is reminding them that going over the top with current customers could potentially create a higher return. $250/mo on Yelp ads gets a few dozen eyeballs on the business. $250 in free product every month to regular customers creates Fanatics who tell ever, and could possibly get just as many of their peers eyeballs with a FB/IG post about their experience. A lot of people forget the basics because it's not being sold.
- Grustaf 9y agoSure, but still, I don't see why you would need to look at asymptotes and convergence. It's enough to look at individual customers and ask the baker if he thinks it's easier to attract a new client than to stop an existing one from leaving.
- alexchamberlain 9y agoMarketing != Advertising Marketing should be just as much about retention as it is about acquiring new customers (neither of which is advertising mind)
- deleted 9y ago[deleted]
- PretzelFisch 9y agoI would guess a baker has more cost issues associated with the number of cupcakes that are tossed out do intermediate demand then on advertising.
- savanaly 9y agoPeople understand that saving is generally a good idea, but usually have a revelation of sorts when you show them the math of compound interest, and become more inclined towards saving. Introducing the concept of a steady-state customer base that's affected by new customers from marketing as well as by retention rate might have a similar effect.