{"id":1493,"slug":"rule-smb-magnitudes-from-named-cases-dont-scale-down","title":"Rule: the mechanism generalises, the magnitudes do not — SMBs cannot extract the same uplift Tesco / AA / Progressive did","kind":"rule","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team"],"topics":["pricing-intelligence","information-asymmetry","customer-retention"],"reference_body":"**Rule.** When citing named-case magnitudes (American Airlines $1.4B, Tesco doubled share, Progressive Q1 combined ratio 86.4pct), explicitly disclose that the data volumes involved are orders of magnitude beyond a typical SMB. The mechanism generalises; the magnitudes do not.\n\n**Why.** The Clubcard trial alone generated 50M transactions in three months ([[tesco-clubcard-1994-trial-9-stores-50m-tx]]); Progressive's telematics generates ~1M+ records/year per *truck* (Carrier Management figures referenced in the source brief); American's yield-management baseline was system-wide US passenger volume. A typical SMB lifetime transaction count fits inside any of these single-period datasets.\n\n**How to apply.** For every named-case magnitude in a Candid article, include a one-sentence volume disclosure and reframe as \"this is the prize *if* you reach this volume and these conditions.\" For SMB-relevant magnitude evidence, prefer alternative-data credit-scoring studies ([[nber-wp-29840-invisible-primes-fintech-altdata-2022]], [[jpal-agarwal-2019-india-mobile-social-default-prediction]]) where the per-borrower mechanism is closer to per-customer SMB application.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"research-brief-data-driven-tools-smb-june-2026","title":"Research brief: live data and data-driven tools for SMBs — when it's an edge, when it's overkill (June 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"research-brief-information-asymmetry-decision-edge-june-2026","title":"Research notes (capture-layer): the affirmative, inward decision-edge case for data intelligence — information asymmetry applied to pricing, demand, risk, retention, targeting (June 2026)","kind":"research-notes","scope":"business","link_type":"depends-on"},{"slug":"american-airlines-yield-management-edelman-1992","title":"American Airlines yield management — $1.4B over 3 years, ~5-7pct incremental revenue, Franz Edelman Award 1991 (Smith Leimkuhler Darrow, Interfaces 1992)","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"tesco-clubcard-1994-trial-9-stores-50m-tx","title":"Tesco Clubcard 1994 trial — 9-14 stores over 3 months, >50 million transactions; dunnhumby analysed ~10pct sample","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"clubcard-operating-cost-500m-per-year","title":"Tesco Clubcard — operating cost estimated at ~£500m/year (the cost-side counterweight)","kind":"reference","scope":"business","link_type":"depends-on"}],"incoming":[]},"created_at":"2026-06-21T01:14:48.850Z","updated_at":"2026-06-21T01:14:48.850Z"}