“The customer is always right” is a quote attributed to a venerable Chicago retailing pioneer Marshall Field. That customer-centered approach of doing business was cutting-edge towards the end of the 19th century and soon became synonymous with Mr. Field’s department store empire. However, even after a century, it turns out that the same customer-centered approach remains the best practice for marketing, but the difference now lies in the operating model. In some ways, being “customer-centric” is more challenging and achievable than it was in the 1890s. The key here lies in using effective marketing analytics solutions or associating with companies that have proficiency in offering exceptional marketing analytics solutions.
In today’s competitive market, there are very few instances where having a single marketing approach helps ameliorate revenues for different business units. Customers are more empowered, and dissatisfied customers flock to competitors, often influencing others to join them. Consequently, it becomes crucial for 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. For conglomerates looking to quantify the impact of marketing spends, it becomes imperative to associate with companies that have experience in offering effective marketing analytics solutions.
We at Quantzig, track recent developments and innovations in the market through secondary journals and reach out to key stakeholders such as industry leaders, end users, KOLs, and marketing experts to understand their views on the market space. Our marketing analytics specialists also connect with relevant stakeholders in the retail and CPG market space to understand fluctuating consumer interests and marketing tactics in the short and long term.
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The Business Challenge and Quantzig’s Marketing Analytics Approach
With a keen eye on exploring future growth opportunities, the client, a leading global retailer collaborated with Quantzig to develop 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. According to the client, its customers interacted with the brand through a number of channels. Many of its customers had come on board through social media or via print ads. However, since the company’s market share was constantly increasing, and the retailer needed to plan its marketing activities with greater clarity. For businesses looking to establish themselves in the retail and CPG sector, the process of manually tracking spends and its corresponding impact is extremely tedious and creates a huge lag between effort and evaluation.
The primary objective of this marketing analytics engagement was to develop a solution that is capable of quantifying the contribution of each individual media type on incremental sales and the ROI, deep dive analysis of campaigns for each media type, response curves to understand saturation point for spends, and simulation of spending scenarios for future budget allocation.
To meet the specific category requirements of the retailer, our “marketing analytics” 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.
An overview of the data used and models applied are given below
Business Benefits and Insights
With the objective of helping the global retail chain understand the impact of their marketing spend, a dedicated marketing analytics team with hands-on experience in market mix optimization, and experienced in various data analytics projects for leading global retail companies was assigned to this marketing analytics engagement. The recommendations made to the client helped them improve ROIs from their media investments based on optimized marketing strategies. Additionally, our marketing analytics solutions also helped the client improve their ability to quantify marketing effectiveness of channels and campaigns in terms of ROI, revenue, contributions, and incremental sales.
Additionally, a year-on-year analysis of media contributions and ROI generated was also carried out to enable the retailer to assess the marketing performance of different media types over time. Quantzig’s marketing analytics team also created an ROI simulator for analyzing the impact of investment decisions based on simulated scenarios, providing executive management with a powerful decision support system.
In just eight weeks, the client was able to gain effective predictive insights for comparative ROI analysis across media types, the contribution of brand equity vs. advertising on incremental sales, campaign analysis of each campaign to understand the ROI, synergy analysis to identify the direct and indirect impact of media types on incremental sales. Moreover, scenario analysis helped the client run ‘what if’ scenarios to identify incremental revenue opportunities.