Understanding the Value Equation

By July 11, 2009Strategy

I am sure that many of you (me included) are big fans of Seth Godin. His blog is looked at by many marketers and business people as a guide for making those hard and timely decisions.

Our Director of Sales Andrew Vick sent this equation from Seth a few weeks back: Value = benefit/price

I know that many businesses are in a financial squeeze with the current economic conditions and are always trying to get the best deal and most out of every dollar they spend. I also know that Blue Tent as an internet marketing agency sees this first hand almost every day.

  • What do I get for that
  • What did I get for that
  • How come this takes so long
  • When will I see my ROI

These are all standard questions we get every day and I thought I would share some ideas for our customers and blog subscribers to get more Value for their marketing dollar.

Here are my Top 3

  1. ALWAYS have your analytics set up by professionals. At Blue Tent we use Google Analytics (there are many others) to track and measure effectiveness of marketing programs. You will have no idea what your value is if you don’t take the time to set up and configure this correctly.
  2. Have a trusted member outside of your internal staff. Whether it’s your uncle in Seattle or a Blue Tent Marketing account manager, have someone outside of your internal team know and understand your metrics and your programs. This will give you an outsider’s view of your business and could yield HUGE value because they see something you did not even know you did not know.
  3. Email more. Simple rule of thumb, but you have to do it right…. You need to have good content with solid information and/or value to your customers. Email done effectively will give you much more value from the benefit/price equation.

So that’s my 2 cents on how to think about the Value=benefit/price equation with 3 things you should do today to make sure you have the ability to properly make the next round of decisions. We KNOW that next round will be very important to your business going forward. Good luck

– Peter Scott
President, Blue Tent Marketing

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