Building a Market Mix Model to improve marketing ROI
The client had a significant marketing and promotions budget, but had little visibility of how effective that spend was against key business metrics including customer spend, new sign ups and initial deposit value. We were asked to build a Market Mix Model that would identify the key drivers of sales and quickly allow them to assess the impact of their media spend.
We developed a Market Mix Model that:
- Used data from multiple sources including, sales, marketing and promotional spend, competitor activity, weather, sporting calendars
- Used an econometric approach to model what baseline activity was – what would happen if there was no marketing spend?
- Created a model that showed how factors interacted and the contribution each factor had on sales and new customer sign ups
- Created an optimisation tool that allowed the client to simulate different media spend scenarios and find the optimal mix to drive sales