3 ms·

That 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 ago
Don't most people know this without math, that acquiring new customers is more expensive?
- robinjfisher 9y ago
  You 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 ago
  Local 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 ago
    Sure, 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 ago
    Marketing != 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 ago
I would guess a baker has more cost issues associated with the number of cupcakes that are tossed out do intermediate demand then on advertising.

Grustaf 9y ago

Don't most people know this without math, that acquiring new customers is more expensive?

robinjfisher 9y ago
You 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 ago
Local 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 ago
  Sure, 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 ago
  Marketing != 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 ago

I would guess a baker has more cost issues associated with the number of cupcakes that are tossed out do intermediate demand then on advertising.