Market mix optimization Archives | Quantzig

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marketing mix modeling

Marketing Mix Modeling Engagement Helped a Fashion Retail Player to Reduce Marketing Spend by 33% – A Quantzig’s Success Story

The client is a leading fashion retail company based out of Germany. They approached Quantzig to leverage its expertise in offering advanced marketing mix modeling solutions to help them optimize the effectiveness of their marketing campaigns and align their marketing goals with customer behavior.

To stay ahead of the curve in today’s digitally inclined business sphere, influencer-based marketing, and personalized promotions have become prerequisites for companies in the fashion and retail industry. Also, to impact customer buying decisions, businesses need to identify platforms that can help them connect with their customers better and improve their experiences. To succeed in doing so, companies in the fashion retail industry need to adopt a comprehensive approach to marketing mix modeling that can help them gain an in-depth insight into the ROI of their marketing efforts. Furthermore, leveraging advanced marketing mix modeling techniques can help businesses in budgeting marketing campaigns and evaluating campaign success. Consequently, businesses can effectively allocate marketing budgets and reduce customer acquisition costs.

Quantzig’s marketing analytics experts can help you devise customized marketing mix models to drive incremental business value. Get in touch with them right away!

Business Challenge

The client, a leading fashion retail company, was finding it difficult to adapt to the rapidly changing market trends and customer behaviors in the fashion retail sector. Also, the client wanted to identify channels that could help them better connect with their customers and drive revenue. For this, they were looking for a comprehensive and analytics-driven approach to marketing mix modeling that could help them gain in-depth insights into their marketing efforts. Also, they wanted to leverage marketing mix modeling to optimize their marketing campaign strategies and investments.

Our marketing mix modeling solutions help companies to effectively manage their marketing mix strategies with multi-channel performance metrics. Request a FREE proposal to gain in-depth insights.

MMMSolutions Offered and Value Delivered

The marketing analytics experts at Quantzig adopted a holistic approach to help the client accurately predict, optimize and gauge the impact of their marketing campaigns and predict future sales impact for different marketing spend scenarios. By leveraging advanced multi-touch attribution models and analytical tools, the experts were able to deliver accurate insights into the client’s marketing efforts. Such insights further helped the fashion retail company to quantify the impact of their marketing efforts and improve customer engagement across different platforms.

Quantzig’s marketing mix modeling solutions can help you gain a holistic understanding of what’s driving sales along with a glimpse into factors that adversely impact MROI. Request a FREE demo to know more.

Quantzig’s marketing mix modeling solutions also helped the client to:

  • Implement a unique approach to enhance cross-channel attribution
  • Reduce marketing spend by 33%
  • Quantify marketing effectiveness of channels in terms of MROI

To learn more about marketing mix modeling techniques, request more information below.

marketing mix modeling

Marketing Mix Modeling Helped a Leading Retail Company to Improve Market Share and Increase Profitability by 23% – A Success Story by Quantzig

The client is a multinational retail firm based out of the Netherlands who was looking at leveraging marketing mix modeling solutions to improve its marketing effectiveness in terms of sales, share and profits.

With the advent of new technologies such as IoT, AI, and VR, businesses across industries are gradually shifting to digital platforms. Consequently, most consumer purchases take place through multiple touchpoints with several factors influencing the purchasing decisions. Companies can mine marketing data with the help of marketing mix models to analyze their customer’s buying patterns. With the help of appropriate marketing mix modeling techniques, businesses can understand the impact of marketing spend across channels and can monitor their marketing activities in real-time.

Quantzig’s marketing analytics experts can help you figure out spend allocation for various marketing activities. Get in touch with them right away!

Business Challenge

The client was facing several predicaments in allocating their marketing budget across different marketing channels. The retailer wanted to leverage marketing mix modeling solution to calculate their ROI for their marketing campaigns in real-time. Due to the unstructured marketing spend data scattered across different digital platforms, the client was finding it difficult to analyze datasets and draw accurate conclusions. Therefore, they approached Quantzig to leverage its expertise in offering marketing mix modeling solutions to tackle their business challenges and improve market share.

We help companies to make accurate marketing spend decisions with the help of smart market mix models. Request a Free proposal now to gain in-depth insights into our portfolio of analytics solutions.

Solutions Offered and Value Delivered

The marketing mix modeling experts at Quantzig adopted a comprehensive approach that revolved around the use of marketing analytics to identify and deploy the ideal marketing mix model. The retail player was involved in multiple marketing activities. So, the experts first found it essential to gauge the contribution of each of their marketing investments to find potential growth drivers for specific product groups. The solution offered helped the client to identify major gaps and reallocate their marketing budget efficiently to better support their marketing initiatives. As a result, the retail company witnessed a significant improvement in its market share along with a 23% increase in profitability.

Request a FREE demo to know how our marketing mix modeling solutions can help you identify activities that actually can drive revenue.

Quantzig’s marketing mix modeling solutions also helped the client to:

  • Improve marketing campaign effectiveness
  • Monitor short-term marketing and promotion activities
  • Improve market share by 47%

marketing mix modelingAdvantage of Quantzig’s Marketing Mix Modeling Solutions

Quantzig’s marketing mix modeling solutions deliver in-depth insights into market dynamics through visually interactive analytics dashboards. We help companies to gauge complex customer behaviors at an individual level and build a complete view of individual customers across attitudinal and behavioral dimensions. Also, by leveraging our marketing analytics solutions, companies can integrate data across all marketing channels and consolidate it into a common marketing view that provides invaluable assistance in driving marketing efforts forward.

To learn more about benefits of our marketing mix modeling solutions, request for more information below.

Take a look at our latest article where our analytics services leader decodes the market mix modeling myth:

https://www.quantzig.com/blog/market-mix-modeling

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Market Mix Modeling is Not Just a Black Box: Decoding the Myth with Quantzig’s Marketing Analytics Services Leader Aviral Sinha

Aviral Sinha, Manager (Business Development Operations) and an Analytics Services Leader at Quantzig has over 5 years of cumulative experience across multiple types of analytics engagements including advanced customer and marketing analytics, price optimization, sales analytics and BI solutions. He has played an instrumental role in providing actionable analytics-based insights for clients across multiple industries including Healthcare and Life Sciences, Retail, CPG, Food and Beverages, and Telecom.

With the introduction of digital media into the marketing landscape, gaining proper insights into campaign effectiveness and properly attributing the performances of each channel has become increasingly difficult. The growing demand in the emerging economies and saturation in developed countries has created a rapid shift in the market dynamics across the globe. Consequently, enterprises face immense difficulty in devising market expansion strategies to gain and retain market shares, optimizing its marketing investment, and identify revenue driving opportunities. Market mix modeling (MMM) helps businesses evaluate their past marketing activities and forecast the marketing return on investment (MROI) based on data driven insights. Also, market mix modeling enables organizations to bridge the gap between the marketing spend and the bottom line. 

Quantzig’s marketing analytics solutions help companies to optimize marketing campaigns and make better business decisions that improve ROI. Request a FREE proposal now to gain better insights into our portfolio of analytics services.

Is market mix modeling a black box?

Aviral: Absolutely not! Since marketing mix modeling involves advanced statistical analysis of vast volumes of data, it can appear to be obscure process to non-practitioners. Some have accused marketing mix of being a black box, with inputs going in and results coming out with no transparency to the process. Without a clear understanding, how can one know if the model results are accurate? Though it is certainly a complex methodology, marketing mix is not a black box.

Rather market mix modeling is a proven analytic approach that incorporates science with business acumen to drive actionable insights. Today businesses are leveraging marketing mix modeling channelize spending to media with better ROI and optimize the media mix based on consumption patterns. Furthermore, market mix modeling solutions can help in improving customer targeting based on demographics, including indicator variables to control for seasonality and funnel effects. As a result, companies leveraging market mix modeling can develop a multi-channel strategy to execute and measure campaign across digital channels and improve conversions.

What are the current challenges in market mix modeling?

Aviral: In my opinion, evolving markets are leading to more competition, more products, more options and this has created a challenging marketing environment. Therefore, identifying and collecting data that is completely different from internal and external sources such as marketing, sales, advertising agencies etc. has become very difficult for businesses. Also, companies are facing difficulties in dealing with selection biases in ad targeting based on interest, seasonality in demand, and funnel effects that creates challenges in specifying market mix models. Another major challenge is the emergence of a complete digital landscape which has created a newly empowered customers with diverse personal interests.

Our market mix modeling experts help leading organizations to integrate data across all marketing channels and consolidate it into a common marketing view. Get in touch with them right away.

Is market mix modeling biased to promotions and fails to capture the true effects of advertising?

Aviral: Certainly not! Marketing mix is not biased toward promotions. However, some businesses, especially CPG, tend to be drawn into a promotion-heavy strategy. When promotions are applied over the long term, it is known as deep discounting. While these discounts may help the business and retailer in the short term, neither party flourishes in the end. A deep-discounting strategy conditions consumer to buy on deal, leading to a devaluation of the brand and the category and eroding margins for both the manufacturer and retailer.

Marketing mix is certainly not the cause of this situation, but it can be a part of the solution. Market mix modeling approach helps in identifying opportunities for the manufacturer and retailer. High-return promotional events can be prioritized in a way that does not erode margins in the longer term.

Our customized market mix modeling solutions help businesses gain accurate insights on the ROI of their marketing efforts and measure the effectiveness of various marketing channels. Request a FREE demo below to know more.

What is it that companies should do to be future ready?

Aviral: To start with, some offline channels like TV are great for driving new customers to your online shop when considering the effects of investments in such channels it makes sense to try to measure the effects of these advertising on website traffic. What I am trying to say here is that the combination of both traditional and digital media options for advertising had led marketers across the globe to explore creative ways of attributing sales across channels. Organizations of the future will drive marketing excellence by connecting the online and offline journey with the help of the marketing analytics. Unique identifiers such as loyalty cards, email receipts, coupons and phone numbers can help in identifying and tracking a customer offline. Tracking an offline sale to the unique ID of a customer using data from their browsing history and location can help in attributing the sales to online touchpoints. By leveraging marketing analytics solutions, organizations will close the loop by integrating customer segmentation and market mix optimization and allocation under the same umbrella to develop a holistic marketing strategy.
Want to learn more about how marketing analytics solutions can help your business? Request for more information below.

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Marketing Mix Optimization for a Food and Beverage Manufacturer | Quantzig

About the Client

A leading food industry player was looking at investing significant marketing dollars across multiple marketing channels to enhance visibility. The use of a log-linear marketing mix model did not help the client to achieve the desired business outcome. This is when they decided to leverage Quantzig’s marketing mix optimization solutions to devise an innovative way to modernize and diversify their marketing mix to generate revenue.

The Business Challenge

The dynamic market landscape and technological developments have paved the way for food industry players to expand their marketing channels to drive ROI. Though businesses today have access to troves of customer datasets, they lack the expertise and tools to extract meaningful insights from the datasets. Analyzing customer datasets can help businesses to make informed decisions, the ones that help drive sales and ROI. One way to make this happen is by leveraging Quantzig’s advanced analytics solutions that focus on marketing mix optimization.

Request a Free proposal to learn how we can help you forecast integrated marketing campaign effectiveness and conversion rates.

The client was looking at developing an innovative cross-channel marketing strategy to optimize their marketing budgets and identify new channels for growth. To help them address this challenge, we adopted a two-tiered approach to marketing mix optimization. The initial phase revolved around the development of a statistical model, whereas the second phase focuses on the analysis of the results to ensure the best possible allocation of resources.

Solution Offered and Value Delivered

The food and beverage industry player had the required datasets but lacked the analytics expertise and appropriate tools to integrate and optimize the datasets. Our marketing analytics experts leveraged advanced data fetching and ingestion tools to help them assess the datasets. Our marketing mix optimization solutions also enabled the client to determine and capitalize on cost-effective media vehicles and campaigns that helped them drive significant improvements in revenue. Moreover, evaluating the cost per acquisition rate also empowered them to analyze and categorize marketing efforts based on sales.

Wonder how we can help you? Request a FREE Demo.

A combination of advanced marketing mix modeling solutions and market data enabled the client to:
• Generate insights from disparate datasets
• Integrate sales and customer data into a single unified machine-learning model
• Map customer journeys across the sales funnel using both top-down and bottom-up approach
• Reduce marketing spend by over 14% while consistently increasing sales across regions
• Quantify the value and impact of new marketing channels

What is marketing mix optimization? (more…)

Marketing Mix Modeling: How Quantzig Helped a Prominent Client in the CPG Industry Optimize their Marketing Spend

The client: A prominent player in the CPG industry

Area of engagement: Marketing mix modeling

Over the last couple of years, the consumers’ behavior and needs have been changing, and organizations are embracing technologies to meet the ever-growing array of these demands. The shift from conventional shopping to advanced online retailing can be attributed to factors such as the rise of middle-class population, urbanization, and globalization. To keep pace with the altering preferences of the customers, leading businesses in the CPG industry are planning to adjust their operating models with that of the competitors. Moreover, as retailers consolidate, and e-commerce platforms increase, CPG companies are relying on winning go-to-market strategies to retain their position in the market.

Some of the factors influencing the growth of the CPG industry are:

  • Innovations: As the current retail landscape is witnessing a shift toward digitization, prominent companies are developing, testing and iterating innovative ideas to optimize customer engagement. Moreover, it becomes essential for the companies to re-align their product offerings to meet the growing demands of the customers.
  • M&A activity: With the growing number of e-commerce platforms, a considerable number of companies are looking forward to expand across geographies to potentially reach out to different markets. Moreover, organizations are further collaborating with reputed firms to drive sales and increase their return on investment.

To address such challenges and optimize the marketing campaigns to enhance their business efficiency, leading organizations are leveraging marketing mix modeling solutions. The marketing mix solution helps businesses identify the market effectiveness and streamline their marketing campaigns to enhance the business performance.QZ- Request free proposal

The Business Challenge

The client, a prominent CPG company with considerable retail stores, spread globally, wanted to gain actionable insights into the sales, market share, and marketing ROI. The CPG company wanted to identify the strengths and weaknesses and optimize their marketing mix to improve the effectiveness of marketing campaigns on business performance. Moreover, with the help of marketing mix modeling engagement, the client also wanted to understand the impact of online media on sales and optimize investments to drive profit. The primary objective of the client was to measure the potential value of all marketing inputs and make investments to increase long-term revenue.

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The Solution Benefits and the Business Impact

Strategies that we recommend based on our analysis to promote sales and increase marketing efficiency

Beyond traditional marketing campaigns, the marketing mix modeling solution offered by Quantzig helped the prominent client in the CPG industry, leverage the use of multiple regression techniques to predict the outcome of sales. The solution also helped the client determine the net effect of their marketing campaigns on company’s profits. The engagement also focused on attributing the impact of marketing activity across all channels to further enhance the return on investment.

Marketing Mix Modeling Predictive Insights:

The engagement offered by Quantzig assisted the CPG company to quantify the impact of sales on marketing activities. The solution also focused on developing an attribution model based on the past marketing spend and sales. Through this model, the CPG company could optimize the future spend and improve the overall business efficiency.


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Marketing Mix Optimization for a Renowned Investment Banking Company Helps Devise New Marketing Strategies

In today’s competition-driven environment, companies in the banking sector are relying on marketing techniques to improve campaign effectiveness and enhance returns on their marketing investment. Also, to stay relevant in today’s competitive market scenario, leading investment banking companies are turning to marketing mix modeling solutions to plan their development and improve their marketing campaigns. Additionally, with the increasing cost-cutting pressure, companies are facing the need for marketing mix modeling solutions to optimize advertisement investments and generate sales growth and revenue. With the help of marketing mix modeling, leading investment banking companies can effectively measure the value of their marketing inputs and identify suitable investment opportunities that generate long-term revenues. Furthermore, leveraging marketing mix modeling also helps investment banking companies determine the effect of marketing on companies’ overall sales.

To effectively monitor and assess the impact of marketing campaigns on revenue, renowned investment banking companies are approaching organizations like Quantzig. Quantzig’s marketing mix modeling solution assists companies to gain actionable insights on sales and market share. Moreover, investment banking companies can identify the strengths and weaknesses of their marketing campaigns and understand the impact of these campaigns on the sales performance.QZ_DEMO

The Business Challenge

A renowned investment banking company with a considerable number of service offerings was facing certain predicaments assessing the effectiveness of marketing campaigns and reallocating their marketing spend. The investment banking firm wanted to revamp the existing marketing plans and meet the business goals to further improve the sales and profit margins. Moreover, with the help of marketing mix modeling, the investment banking company wanted to further determine the business drivers and accordingly allocate company resources.

The primary objective of the engagement was to analyze the market spend for the services rendered in the investment banking companies space.

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Benefits of Marketing Mix Modeling

The marketing mix modeling solution helped the investment banking company assess the impact of past campaigns and business performance and accordingly helped the company reallocate the marketing budget. Moreover, with the help of this engagement, the client was able to answer the most generic questions on the future spending patterns. Also, the marketing mix modeling engagement assisted the client to drive more profitable promotions and enhance the overall business outcome.

Marketing Mix Modeling Predictive Insights:

  • Understood the impact of traditional, digital, and social media on sales performance
  • Improved the business growth by 20% and achieved better returns on marketing investments
  • Optimized investments to drive sales and profits
  • Analyzed the impact of brand equity and customer satisfaction on the overall sales revenue
  • Assessed the future impact of change on the marketing strategy

Want to know more about our marketing mix modeling solution for the investment banking sector?

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Marketing Mix Optimization for Marketing Excellence | Quantzig’s Webinar Series

Marketing mix optimization has always been a corner stone for businesses looking to perform a deep dive analysis of the potential opportunities in developed as well as emerging markets.

The rising demand in the emerging economies and the market’s saturation in developed countries has created a rapid shift in the market dynamics across the globe. As a result, organizations’ marketing function faces a tough time in optimizing its marketing investment, devising market expansion strategies to gain and retain market shares, and identify revenue driving opportunities. Marketing mix modeling (MMM) is a type of statistical analysis that helps businesses evaluate their past marketing activities and forecast the marketing return on investment (MROI) based on data driven insights. Marketing Mix optimization enables companies in bridging the disconnect between the marketing spend and the bottom line. QZ

Through marketing mix optimization, marketers can maximize their return on marketing spend and identify profitable marketing mix with a variety of channels and media. Optimizing the marketing mix helps companies determine the value of marketing activities and interactions while identifying the revenue and cost opportunities for the same. These insights are based on the data collected through traditional media (TV, Print, Radio, PR, etc.) as well as digital media (websites, social media, etc.). Additionally, the data obtained through various sources is combined with the sales information and can enable organizations to develop marketing strategies that will help in driving profitability, increase incremental sales, and improve conversions by identifying media channels that are effective and profitable in reaching customers.

This webinar on “marketing mix optimization for marketing excellence delves on these aspects and offers insights into the benefits of leveraging digital channels in the marketing mix, the challenges of optimizing marketing mix, and the future of marketing strategy development in organizations.

Here’s an insight into the top four aspects that our 45-minute webinar on the application of marketing mix optimization for marketing excellence in the industry will address:

  • Current challenges and market mix models to maximize sales and marketing effectiveness
  • Roadmap for advanced data analytics driven market mix modeling
  • Rising prominence of digital channels in market mix optimization
  • The way forward for marketing strategy development for future organizations

 

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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.

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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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