Marketing Mix Optimization Improves Marketing ROI for a Leading Retail Chain

Jun 9, 2017

Proliferation of new media channels such as online forums, content marketing, search engines, and viral marketing, have propelled marketers to spend their marketing budget in new ways. However, they are unsure whether the marketing dollars for these new channels are spent effectively. One of the biggest concerns of today’s retail marketing managers is to analyze how to allocate their limited budget for a wide range of marketing activities. With customers being more empowered now, dissatisfied customers flock to competitors, often influencing others to join them and therefore, it is vital to equip managers with an effective investment plan for their marketing activities.

It is crucial for retail companies to know their customers well as business to ensure efficient transformation of data into insights and create a competitive advantage in terms of targeting and retaining their customers. Quantzig’s market mix optimization is a decision-making tool for marketers that can leverage them to figure out spend allocation for various marketing activities.[spacer height=”20px”]

The Business Challenge

A leading global retailer wanted an effective marketing ROI solution, which would help them understand the impact of marketing spend across channels like display, paid search, social media, FEP, and print. Their customers interacted with the brand through many channels and they had to manually track the spends. It was extremely tedious and created a huge lag between effort and evaluation and the retailer needed to plan its marketing activities within a real-time fashion.[

Our Approach

To meet the specific category requirements of the retailer, our team collaborated with the client to develop a solution for evaluating the impact of their marketing strategies and ROI simulators for scenario analysis and planning.

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Market Mix Optimization Benefits:

  • Quantified marketing effectiveness of channels and campaigns in terms of ROI, revenue, contributions, and incremental sales.
  • Improved cost savings based on optimized media spending and increased profitability by 12%
  • Improved ROIs from their media investments based on optimized marketing strategies

Market Mix Modeling Predictive Insights:

  • Assessed the marketing performance of different media types by generating a year-on-year analysis of media contributions and ROI
  • Created an ROI simulator for analyzing the impact of investment decisions based on simulated scenarios
  • Analyzed overall ROI from media spends for executive level performance snapshot

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