“Sudarshan and his team showed great expertise and analytical rigor in designing customized marketing mix modeling solutions to improve marketing effectiveness and drive growth across market segments”.
About the Client
The client is a Fortune 500 prosthetics manufacturer based out of San Diego, well-known for offering a wide range of customized solutions for people of all ages. Their offerings include high-tech, advanced prostheses, braces, and other such devices that are designed to promote the mobility of patients.
The Business Challenge
Despite its promising growth prospects, identifying the right channels to target customers is of utmost importance for healthcare companies today, as ‘marketing’ as a core business function has turned out to be more customer-centric and value-driven. With leading manufacturers of prosthetics striving to strike the perfect balance, many are unaware that advanced marketing mix modeling solutions can help them target the right customers and drive greater profits by optimizing marketing spend.
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With the marketing spend highly concentrated in specific local market segments, the client- a leading prosthetics manufacturing company realized that it lacked a consistent spending structure due to which they were unable to quantify the success of their marketing campaigns. To tackle this issue, they needed a full-suite marketing mix modeling solution for their offerings in the American market segment. By leveraging marketing mix modeling solutions, they were looking at quantifying the impact of their online and offline sales channels, gauge ROI of their promotional activities, optimize spend, and gain insights into cross-channel attribution between digital and traditional marketing platforms.
The challenges faced by the prosthetics manufacturer included:
- Complex and non-granular marketing spend data
- Uneven and inconsistent data in multiple formats
- No set approach to data normalization
- Lack of an unbiased estimate of marketing effectiveness
- Lack of effective territory alignment
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Solutions Offered and Value Delivered
Quantzig’s dedicated ‘Analytics Centre of Excellence’ with a team of 20+ data scientists, domain experts, and analysts designed an innovative three-pronged approach to marketing mix modeling to tackle the challenges faced by the client. The marketing mix modeling solutions leveraged machine learning techniques, advanced algorithms, and probability theory which focused on bridging data gaps and quantifying the impact of standalone marketing activities on revenue, sales volumes, and price of similar products in the market.
The first phase of this marketing mix modeling engagement revolved around leveraging domain knowledge to identify data gaps and estimate the localized spending of each channel at a more granular level.
Based on the insights obtained, in the second phase of this marketing mix modeling engagement, we focused on appending demographic and psychographic data sets to assess the impact of different market segments and their contribution to the marketing effectiveness.
In the third phase of this marketing mix modeling engagement, our experts leveraged advanced analytics and deployed interactive dashboards to uncover the relationship between sales and spend for each channel. This helped them to determine the optimal investment and optimize spend budget for each channel.
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Quantzig’s marketing mix modeling dashboards also empowered the client to simulate various scenarios and gauge incremental sales by performing a deep dive analysis of sales data. Furthermore, the use of regression techniques empowered the client to extract key information and insights from existing data sets.
Marketing Mix Modeling Engagement Overview
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The insights offered enabled the client to determine the optimal investment required for each market segment. As a result, they adopted an analytics-driven approach and utilized the marketing mix modeling insights to improve brand awareness across different target market segments. The customized marketing mix modeling solutions also helped them to differentiate the segments based on the impact of the marketing mix into two namely- truly effective and those which could be abandoned. This freed up more than 10% of their marketing budget that was later invested in alternate and targeted sales channels. Our marketing mix modeling solutions also helped the client to reduce total spend on marketing campaigns by 17% and at the same time increased market share by 5% within a short span.