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Thank you, that gives some meat. Ultimately, I was focusing on the fact that if a customer brings you n new customers, n < 1 (and real number), it means you ge
by quadcore 9y ago
Thank you, that gives some meat.
Ultimately, I was focusing on the fact that if a customer brings you n new customers, n < 1 (and real number), it means you get new customers only via marketing. If n > 1, you get new customers with something else than marketing - so to speak.
- IanCal 9y agoActually anything n > 0 will mean you get customers by more than just marketing by definition. n > 1 for a static n is exponential growth. Edit - though under 1 you can see a limit. For example, if n = 0.5 then you would expect to grow to twice the size. In reality it's much more complicated, but on a purely mathematical basis this should be right.
- jaggederest 9y agoN is literally the percentage of your steady state customer base that comes from referral. So it's the divisor on your marketing expenditure for any given customer quantity. N > 1 never reaches a steady state, those are "viral" businesses.