Why All Effective Marketing is Math
By Grant Miller, Salon Consultant
I never thought in my wildest dreams that I would ever be teaching anyone about math of any kind. It was one of my worst subjects in school. If the world depended on me to calculate the rocket trajectory for a nuclear warhead to blast away a meteor hurling towards earth, we would all be goners.
But the math that I am good at, and the math that matters to us in the real world of business, is your marketing math. These are basic equations that tell you a whole lot about making good marketing decisions for your salon(s).
When I consult with salon owners, I can usually stump them within the first couple of questions since they have no idea of the most basic information that is crucial to their business.
Not knowing your business and marketing math would be like trying to sail across the ocean without a GPS, map, sextant or any form of navigation equipment. If you did survive the journey, which is unlikely, you would definitely end up very far from where you wanted to go. I see salons crash and burn all the time for failure to know and understand their meaningful metrics.
Three of the most important marketing math number you need to know are:
- Average annual revenue per member
- Average lifetime revenue per member
- Cost of acquiring a new member
