Intangible Values Must Be Measured, Too

Intangible Values Must Be Measured, Too

Marketing programs typically include multiple elements – some with obvious values but others rely heavy on what we call “intangible value.”

For example, the program may include mass media advertising, direct mail, premium incentives, rebates and more. From a cost-based perspective, these elements are worth what you paid for them – essentially their market value.

But consider something like playoff tickets to a New York Yankees game. This will typically sell for more than the retail or “face value” of the ticket. Why? Because they are highly desirable, hard to get, and carry the “intangible value” of attending a Yankees playoff game.

Using a cost basis, you could simply assign the market value – what you paid for the tickets.

But this approach may be unsatisfactory on several fronts. First, you may be in a unique position to purchase the tickets, whereas someone on the “open market” may be shut out entirely. In this case, the purchase price doesn’t reflect the full value.

Secondly, the true intangible value will be much higher if the actual user of your ticket – perhaps a valued client – is an enthusiastic Yankees fan.

And finally, it is useful to be able to understand the comparative value of several options before you make the purchase.

Therefore, Hyperion Marketing Returns uses an algorithm that takes into account the ten most common intangible qualities that add value to a marketing opportunity.

By critically grading the opportunity on its ability to deliver against each of these qualities, we generate a predictive value that enables more sophisticated decision-making.

Break your decisions down using this type of critical thinking, and you’ll become a more sophisticated marketer.