These Savvies explore the topic of Business in more detail —
Now you may be protesting “that’s fine for a pastry shop. They deal in pennies. But speakers don’t need to be that precise, do they?” Well, sometimes they do.
Too many beginning speakers approach marketing solely from a creative point of view. While there's certainly nothing wrong with being creative — in fact, it's essential to your success — you are setting yourself up for disaster if you don't also "run the numbers" on all your marketing activities.
Now let’s consider how running the numbers can affect your decisions in a direct mail marketing campaign. As before, you just might be surprised at the results!
Now let’s explore the ramifications of the example in the previous session.
But what about actually increasing your marketing costs? That’s not very smart, is it? Again, it depends — run the numbers!
Now let’s consider another “what if” scenario. Specifically, what if you increase the price of your product? What happens?
You should now have a greater appreciation of the dramatic difference tiny changes can make. A small increase (or decrease) in the price of your product, an increase in the perceived value of your product, an “insignificant” change in your marketing mailing — all of these can have a staggering effect on your bottom line.
You don’t need to restrict your test-marketing to big differences. If you’re doing a marketing campaign anyway, why not try out various marketing techniques?
I’ve saved the most impressive — and arguably the most important — concept of “running the numbers” for last.
Compounding doesn’t apply only to financial matters. It’s the central idea behind viral marketing. It’s the old idea of “I tell two friends, and they each tell two friends, who tell two friends….”