MARKETING MIX MODELING
Optimize Your Marketing Mix Isn't About Investing More Money, But Investing Less Money In Strategic Cross Channel Marketing-Client Spent 10% Less, And Generated More Comparable Sales!
A leading technology player was investing major marketing dollars across multiple offline and online channels-but the sales needle wasn't moving much. They were relying on the long-standing, log-linear based marketing mix model that was the standard for nationwide and global organizations. While they had the budget for major media, TV, and social media marketing, and extensive granular data-their marketing was delivering mediocre results. They were searching for an innovative way to modernize and diversify their marketing mix to generate revenue.
BENEFITS
MORE FOR LESS
Dextro Analytics' custom-tailored Cloud-based optimization clearly identified which segments of their marketing mix were truly effective, and which could be reallocated or abandoned. This freed up more than 10% of their budget, that could be invested in alternate-and targeted sales channels.
OPTIMIZATION
Equipped the marketing team with the real-time insights required to bid for and invest in the right digital ads, and cross-channel promotions.
BEST OF BOTH WORLDS
Created holistic marketing insight-engine which can be used to strategize both marketing mix modeling and attribution modeling. Also to capitalize on trending and innovative focus areas.
CUSTOMER JOURNEY
Mapped markets to consumers and back through a unified theory of human behavior.
THE CHALLENGE
Sales were flat, which lead our technology client to increase their marketing budget-but not in the right places. They were following the traditional, and now dated, marketing model mix. Although they had a substantial budget, more does not always equal better. They were searching for a way to optimize their marketing, implement innovative and strategic cross-channel marketing, and reduce their overall marketing budget.
Solution
The client had the in-depth data we required, we just had to integrate and optimize it in a way that would provide innovative new insights. Our data engineers created a custom-tailored data fetching and ingestion tools. A combination of internal and external customer and industry data allowed our engineers to:
1. Fuse aggregated and consumer-level data in a single unified machine-learning model.
2. Generate insights from joining multiple internal and external and disparate data.
3. Develop effectiveness at three levels – aggregated, segment level, and consumer.
4. Map the customer journey across channels using both top-down and bottom-up approach. Views and conversions was then measured/attributed to devices, channels and DSP. This information was then used to predict performance based metrics and define audience goals for future buys.
5. Through reach, relevance, and contextual analytics, decision engineers identified effectiveness of 128 social media campaigns.
6. Balance on-trend short-term marketing and promotion tactics, with long-term and ongoing branding, engagement, and customer loyalty.
7. Quantify the value and impact of emerging/new digital media (Facebook, Groupon, Foursquare, mobile aps, etc.)
RESULTS
1. Determine which media vehicles and campaigns are most effective (cost and conversions) at driving revenue, profits, share and consumer segments.
2. Reduced spending of marketing dollars by more than 10%, while consistently increasing sales volume and comp sales.
3. Identified cost per action/acquisition, and enabled client to understand which marketing efforts are generating sales, and why.
4. Through DIY custom tool, client was able to visualize data, diagnose, and run scenario planning on marketing channels. The tool enabled client simulate how much sales can be expected (up to 3 years) per dollar spent on marketing.
“We were searching a vendor that can challenge our models and help us reduce marketing spending, while increasing our revenue. Our search ended with Dextro Analytics who made every dollar spent on the project worth it.”
- Chief Marketing Officer
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