Higher ROI, improved retention and more profitable customers
Challenge:
- A leading telecom service provider wanted to optimize its current media spend and improve marketing ROI.
- Traditionally, the company’s marketing allocation decisions were made based on historical spend levels and year over year goals, but they wanted to find a more sophisticated approach to analytics—one that would allow them to more clearly identify the factors that influenced success historically and better navigate the quickly-evolving landscape. They enlisted Marketscience to help determine how to best optimize marketing dollars and meet aggressive sales targets.
Solution:
- Marketscience met with each of the client stakeholders to gain a thorough understanding of the business operations and marketing challenges.
- From there, we developed a novel, advanced analytical approach to provide more reliable insights when compared to the regression based econometric models. The new approach tested the impact of various media channels (both offline & online) and base factors to help the client understand their true cost per acquisition.
- Marketscience also performed “what if” analysis to uncover the key drivers that would impact the ability to meet target goals.
- For example, the analysis was able to answer key questions like: “What if my brand consideration improved by 1%” and “How much more can I spend in TV without sacrificing efficiency?”
Results:
- Determined how much return could be realized per dollar of media spend, and how impact baseline drivers contribute to overall sales.
- Increased media efficiency by 3% to 5% across various divisions
- Marketscience created a simulation and optimization tool that would assist senior management in optimizing short-term return from advertising and promotions. The findings from this scenario-planning tool also supported strategic decisions regarding the level of media spending in various markets, helping the client meet aggressive acquisition goals more cost-effectively.
What We Did
- Advanced Marketing Mix and Customer Segmentation Models
- Custom Optimization and Simulation Tools