The allocation of marketing funds in financial institutions are often based on a percentage of last year’s revenues; consequently, this approach fails and leads to wasteful spending and substandard results. Better results can be achieved by using marketing mix models (MMM) to determine an optimal marketing budget and quantify the contribution of marketing activities to sales with a view of calculating ROI, effectiveness, and efficiency. To enhance their marketing strategy, many organizations in the BFSI sector are turning to marketing mix optimization for maximizing the return from their media investments.
Quantzig’s marketing mix optimization solution offers an in-depth of advertising ROI and budget allocations. It helps financial organizations allocate future media investments and understand marketing ROI based on the historical marketing data and performance.
The Business Challenge
A leading bank’s marketing and sales division with a presence in over 10 countries wanted to make data-driven decisions to maximize the returns from their traditional and digital marketing activities. Due to manual tracking of marketing spends there was a significant lag between effort and evaluation on marketing ROI assessment. There was a dire need for an effective marketing strategy and the financial marketers to plan with greater certainty to achieve their revenue targets.
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Based on the client’s requirement, Quantzig’s research experts analyzed various sales data, fixed marketing expenses, variable marketing expenses, economic and purchase funnel indicators to create effective marketing mix models
Marketing Mix Optimization Benefits:
- Generated cost per point metrics for each media type to analyze the efficiency and compare with the ROI
- Created a real-time solution for investment decisions, providing executive management a powerful decision support system
- Future investment decision support based on simulated scenarios
Market Mix Modeling Predictive Insights:
- Synergy analysis to identify the direct and indirect impact of media types on incremental sales and the ROI generated
- Comparative ROI across media types based on advanced regression methods for each product on promotion – retail banking products, loans
- Insight into contribution of brand equity vs. advertising on incremental sales and the ROI from each media type
- Campaign analysis of individual campaign to understand the ROI and incremental sales generated at a granular level – debit/credit cards, home loans, shopping discounts and cashbacks,