Calculating value of a decision isn’t as hard as it sounds.
Is going to the festival where you’ll introduce your brand to eight people worth it? You can calculate it by assuming 20% or roughly two people will come visit your shop and let’s say the average purchase price is $24. Is your hour at the festival worth $48 dollars next weekend when they visit?
What about the value of a direct mail piece to 2,000 people that costs you $1.50 per person to send and an addition $2 per person who shows up to use the special pricing you included on the mailer? Is the $1,240 life-time value of 5% or roughly 100 people worth more than the $3.50 it took to get them to your shop?
This kind of math is easy.
It’s plug-and-play based on educated assumptions, historical data and hard costs.
The tough part comes in when you work to add in uncalculated value. It’s the free glassware you give out to those two people who entered your shop. Or the high-fives or the story of why you sell what you sell or the value of a new connection to someone in the community.
What about the value of putting a scratch & sniff element to the direct mail piece so those who recieve it have something to talk about even if they don’t enter your store or the value of a smile and friendly “thanks for coming in.”
Calculate the value when you can, but don’t let that stop you from providing uncalculated value to an experience.
Now that everyone has a calculator in front of them (and actually knows how to use it), those who provide more unclaculated value are the ones who make it to the top and who we talk about.
Stay Positive & Blend Your Value
Photo credit
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