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Marketing mix modeling is a statistical tool that leverages advanced statistics to measure the impact of each marketing campaign on sales volume, profit, customer acquisition and customer retention. These insights can be used to analyze the marketing spend, determine the ROI and predict future marketing spend to forecast sales. Marketing mix modeling is widely accepted in the retail and consumer packaged goods (CPG) industry. Apart from these, financial service, banking and insurance industry, healthcare industry and telecom industry can also reap benefits of the MMM technique by integrating it with their performance measurement metrics.
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Marketing professionals often face a challenge in analyzing and determining the effectiveness of their marketing campaigns across offline as well as online advertising channels. The most common tool used by marketing function is test marketing, which helps in predicting the effect of marketing campaigns individually. However, marketing mix modeling facilitates the impact of all the marketing campaigns in real time thereby eliminating the shortcomings of test marketing.
Marketing Mix Modeling Enables a 360 Degree Approach
The marketing mix modeling technique offers a 360-degree perspective of marketing effectiveness and helps in determining the marketing ROI. It analyzes the impact of all the internal as well as external factors that affect the offline and online channels including digital and traditional media. This model does not over or under attribute success to marketing mix variables as the marketing effectiveness combines the potential and actual attribution of the variables.
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Combines Digital Attribution and Customer Insights
Through digital attribution, marketing mix modeling helps in optimizing the marketing efforts and measuring increment in the revenue and profit as a result of the campaigns. While measuring the marketing ROI, organizations must understand the fact that each KPI includes granular levels that vary in intensity. This requires bringing digital attribution and customer insights together in order to derive insights and drive marketing campaigns.
Leverage Insights to Drive Marketing Effectiveness
The benefits of marketing mix modeling help marketing professionals leverage data-driven insights in order to deliver profitable results. The traditional methods of performance measurement are time-consuming and increase costs. Thanks to technological advancements and increase in the use of data analytics, the MMM technique helps organizations in procuring insights quickly thereby expediting strategic decision making
At Quantzig, we offer a wide range of customized marketing analytics solutions such as marketing mix modeling, campaign analytics, attribution modeling, and big data analytics among others. We help organizations in optimizing their marketing mix through accurate actionable insights to help drive marketing ROI and measure the effectiveness of various strategies across different marketing channels.