Evaluating Marketing Spend Budgets Across Different Channels in the Retail Sector Through Marketing Mix Optimization
Quantzig’s latest study on marketing mix optimization for a leading global retail chain guarantees 12% increase in profitability and cost savings.
Emergence of different media channels in the retail sector
The introduction of different media channels helps retailers mitigate and manage the risk associated with losing business. Over the years, the evolution of the retail sector has contributed to diverse types of innovations that includes omnichannel, multichannel, charming, mobile, social, IoT, big data, wearables, and gamification. Analyzing the allocation of their limited budget for a wide range of marketing activities such as content marketing, online forums, search engines, and viral marketing is one of the major concerns of the marketers in this segment. The growing focus on using the efficient transformation of data into insights and creating a competitive advantage regarding targeting and retaining their customers will help retailers grow their businesses. The marketing mix optimization team at Quantzig designs decision-making tools for marketers that can leverage them to figure the spend allocation for various marketing activities. The team of experts helps clients understand the impact of marketing spend across channels like paid search, display, social media, FEP, and print.
Retailers are leveraging IoT to increase connectivity in this sector. The introduction of smart appliances and storage solutions will revolutionize the operational processes in the retail sector. Companies are using digital signage, location-based beacons, and sensors to understand the consumer buying behavior and preferences. The implementation of virtual mirrors that allow customers to try products online, smart price tags that update prices on real-time, and packaging innovations that alters managers to re-stock and shelf-life time of various products are some of the latest trends in the market. Marketing these innovations will help companies expand their customer base.
Leveraging Big Data to know customers
The proliferation of social media channels and integration of IoT and connectivity has increased the volume of data generated. Retailers are using Big Data analytics to structure this information and utilize it to determine the buying preferences and the performance of the products. The retailers are using data analytics tools to design effective marketing campaigns, offline sales, and customer engagement programs to retain existing consumers and attract new ones as well. Furthermore, by using these data points, business owners can offer loyalty programs and special offers customized to consumer preferences and demands.
Creating interactive store models
Marketing mix optimization is primarily used to increase the customer interactions and improving in-store experiences. The use of voice user interfaces (VUI) and artificial intelligence (AI) to help customers determine product options and suggesting is the next-big-thing in the retail sector. Offering excellent customer services is the best way to promote the brand identity and increase brand loyalty. The implementation of interactive components in the store either virtually or through customer service will offer superior customer engagement and satisfaction.
Outcomes and solutions offered
Quantzig’s latest marketing mix optimization study assesses and revises budget allocation based on revenue and ROI forecast for each channel for a leading global retail chain. Some of the solutions offered are as follows:
- Assessed the marketing performance of several media types by generating a year-on-year examination of media contributions and ROI
- Created an ROI simulator for evaluating the impact of investment decisions based on simulated scenarios
- Improved cost savings based on optimized media spending and increased profitability
- Quantified marketing efficacy of channels and campaigns in terms of revenue, ROI, contributions, and incremental sales.
- Improved ROIs from their media investments based on enhanced marketing strategies
The complete case study on marketing mix optimization improves marketing ROI for a leading retail chain is now available.
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