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<\/span><\/div>\nWhat is the structure of a Power Function?<\/span><\/p>\n\n
\n- Fraction of Demand = a*(Fraction of Mailings) ^ b.<\/span><\/li>\n<\/ul>\n<\/div>\n
The equation above?<\/span><\/p>\n\n
\n- Fraction of Demand = 1.00 * (Fraction of Mailings) ^ 0.583.<\/span><\/li>\n<\/ul>\n<\/div>\n
In marketing, your ROAS relationships and\/or investment decisions follow a Power Function. Once you see it, you cannot unsee it. In fact, the Power Function is everywhere.<\/span><\/p>\n\n
\n- Price Elasticity.<\/span><\/li>\n
- The Difference in Customer Segment Performance.<\/span><\/li>\n
- Paid Social Advertising.<\/span><\/li>\n
- Product Listing Ad Spend.<\/span><\/li>\n
- Catalog Mailing Frequency.<\/span><\/li>\n
- Email Marketing Weekly Contact Frequency.<\/span><\/li>\n
- Merchandise Assortment Size.<\/span><\/li>\n
- Creative “Winners” vs. “Experimental Photography”.<\/span><\/li>\n
- Winners vs. Contenders vs. Others within your Assortment.<\/span><\/li>\n<\/ul>\n<\/div>\n
I could go on and on, for hours.<\/span><\/p>\nPower Functions explain most of your investment decisions in marketing. The functions are different … your Paid Social “b” coefficient is different from your Email Weekly Contact Frequency “b” coefficient.
<\/span><\/p>\nThis is the point in the post where the curious marketer will take the topic further. You’re free to email me (kevinh@minethatdata.com) and ask questions. The Power Function is the greatest marketing analytics equation of all time! The equation unlocks the secrets of your business.<\/span><\/p>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"It’s 1992 at Lands’ End, and I’m responsible for analyzing mail\/holdout tests … you execute email and\/or print mail\/holdout tests in 2025, right? Here’s the results of a mail\/holdout test. An average professional doesn’t bother with mail\/holdout tests. A smart professional measures profit via the “Increment” line in the table above. The smart professional doesn’t […]<\/p>\n","protected":false},"author":1,"featured_media":226061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12033],"tags":[12765,48800,2583,8402,1231],"dealstore":[],"offerexpiration":[],"class_list":["post-226060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytics","tag-analytics","tag-equation","tag-greatest","tag-marketing","tag-time"],"yoast_head":"\n
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