I certainly understand the concept and utility of permission marketing, but I ma somewhat suspect on how you can actually build a big enough crowd that gives you permission to market to them and stays around long enough before getting bored.
I have signed up for countless email newsletters, deals, etc. but eventually I grow tired of them (usually very quickly) as diminishing returns comes into play quickly. I like this definition/example of diminishing returns as I think it comes into play with marketing and permission based marketing:
Much of human economic activity suffers from diminishing returns. For example, in farming, the farmer will first farm the most fertile land with the most valuable crops. To expand the farm's business, the farmer will have to cultivate progressively less fertile land and will have to grow less valuable crops (once the demand for the most valuable crop has been met). In general, the bigger a business gets, the less optimal its last venture. Assuming that a manager is good at picking the most promising business opportunities to do first, it would seem that diminishing returns are a fundamental law of doing business: the first few deals skim the cream and subsequent ones have progressively less value.
So the question is how do you continually find and farm fertile land and keep those early "crops" interested?
I have signed up for countless email newsletters, deals, etc. but eventually I grow tired of them (usually very quickly) as diminishing returns comes into play quickly. I like this definition/example of diminishing returns as I think it comes into play with marketing and permission based marketing:
Much of human economic activity suffers from diminishing returns. For example, in farming, the farmer will first farm the most fertile land with the most valuable crops. To expand the farm's business, the farmer will have to cultivate progressively less fertile land and will have to grow less valuable crops (once the demand for the most valuable crop has been met). In general, the bigger a business gets, the less optimal its last venture. Assuming that a manager is good at picking the most promising business opportunities to do first, it would seem that diminishing returns are a fundamental law of doing business: the first few deals skim the cream and subsequent ones have progressively less value.
So the question is how do you continually find and farm fertile land and keep those early "crops" interested?
No comments:
Post a Comment