In yesterday’s post, we outlined The Value Game for University Outreach where the graduate was the shared asset and the school administration, the alumni association, the entrepreneurial community, and the wider community were the players. Now let’s presume that the shared asset is a small business owner specializing in aerobics instruction.
Using the same players:
The Aerobics Instructor Game
Suppose that a popular aerobics instructor has 20 students and charges 40 dollars for an 8 class sessions. The local health food store will place 10% coupon on store purchases against the 40 dollar tuition for the duration of the class. If the student bought 400 dollars worth of food from the health food store in 8 weeks, their tuition for the aerobics course would be free. If they spend more, then the aerobics instructor is paid more.
The health food store already spends 10% of sales on advertising. As such, the coupon is a superior incentive because it provides 100% ROI on the store’s ad spend.
Social Value Outcomes:
- The health food store gains loyal repeat customers without advertising or spamming
- The aerobics instructor earns an entrepreneurial wage making similar coupon arrangements with other health services, sporting goods stores, hotels chains, airlines, adventure tourism companies – anyone whose best interest it is to support her clients’ aspiration. They too benefit from loyal customers (anti-Groupon)
- The Alumni Association would represent a network of clients, business owners, and database of persons likely to provide contacts, references, coupons, and advice to the aerobics instructor
- The University can provide gym space, sponsorship, health education classes, and collect data such as; which coupons produce the highest yield for a given alumni product or service and player profile.
The Value Game Filters:
This particular value game automatically filters out the players that are not appropriate for the client. In effect, the donut shop, tobacco store, or video game outlet would not likely benefit from playing this particular value game as their offering would reflect poorly on social values of the instructor and their coupons would not perform well enough vs. traditional advertising. Instead, these products would find their own value game, if any.
Social Value Index (SVI)
The Social Value Index is a public statistic that compares the economic value (cost/benefit) of the socially integrated value game with the cost/benefit of the disaggregated advertising/spamming model which robs people of their time, passions, and quality of life.
Data as a shared asset
The SVI provides data that rewards this entrepreneur for doing what she is most passionate about; being knowledgeable and supportive of available health resources. The SVI rewards the store for enabling entrepreneurs in exchange for loyal repeat customers. The Social Value Index rewards the network of alumni who align with their members (aerobics instructor) to deploy social currency to a community instead of spamvertising. The SVI rewards the University Outreach effort for organizing critical data, information, knowledge, innovation, and wisdom in the community.
At the end of the day:
The Value Game is important because it allows entrepreneurial business plans that would not normally be viable under a purely monetary model, become highly viable when intangible Social Value (New Value) is added to the bottom line.