Part Two: According to my calculations, the whole is equal to the sum of its parts. Here’s how…
Looking at the different parts through demographics, psychographics, geographic areas, spending habits, behaviors, trending or more can help to paint a strong picture of what separates truly loyal customers for each store and the traits of those customers they share (more on this in Part Three).
Most people are usually going to have access to at least ABCD (the market/base), BC (Store or product), and CD (another store/product). The key to the remaining calculations is access to any of the remaining combinations. The ones that usually come more easily are C or BCD. Simply arithmetic helps us calculate the remaining values. If we obtain C, to calculate B, we simply take BC and subtract C. To calculate D, we simply subtract C from CD. To calculate A, subtract BCD from ABCD. Then you have the ability to surmise any combination of the 15 metrics outlined in Exhibit 7.
If you obtain BCD, B= BCD-CD, D=BCD-BC, and then you can calculate the remaining factor, C (BCD-[B+D]).
Circle 1 = ABCD = 1,000,000 (Diameter = 5)
Circle 2 = BC = 610,000
I’m still trying to come up with the formula for the accurate distance from the two center points of each circle for a proportionately accurate area of duplication. In the meantime, a good guess should get the point across.