Q. For that soft rule of taking the short term impact of an effort and multiplying by 2 to gauge the longterm effect what are you considering short term impact? Can apply that rule for one month of revenue, obtained, 3 months, 6 months, etc?
Submitted by Tom Lynch on Mon, 09/21/2020 - 19:02
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I need to make the
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I need to make the distinction between what we were able to do in the past vs. what we're able to do now. We have seen in the past typical carry over levels of about 0.5. So if there's a 10% impact this month, then figure out another 5% next month. And the whole thing kind of dies out exponentially. And that is, incidentally, where that x2 comes from. We don't really associate specific time periods which short or long term, although the literature does suggest that overall speaking, the total effects seems to be between three and nine months. It's certainly not years, it is months. But most importantly, and now I get to the new data sources, if you can track individual purchases, you get much crisper estimates. And so I expect that we'll be able to be more precise in this arena. But in the meantime, it would be as I've summarized.
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