Modeling And Optimization in Digital Health

  • October 12, 2023
  • Case Studies
  • No Comments


  • As a startup in the competitive digital health environment and in light of a recent and substantial decrease in media spend, our client wanted a deeper understanding of the performance of their marketing budgets to generate higher customer LTV.  
  • A more robust understanding of the effectiveness of marketing at driving new and existing customer activity was crucial to develop an effective marketing strategy.  Media impact on existing customers was of particular interest to evaluate as consumer actions are highly encouraged by media when renewals are not structurally tied down.
  • It was also important to understand the potential long-term consumer demand and how to support it with brand marketing.  


  • The Marketscience short- to long-term Dynamic Modeling approach was leveraged within the Studio platform to identify the impact of internal and external drivers on sales and revenue and determine the short-term and long-term returns on marketing investment.
    • In order to evaluate the long-term impact of media, the long-term dynamic base trend which was teased out of the main model was then modeled against online brand perception metrics.
  • A model structure was developed across three main product lines and three customer segments for online and retail sales enabling to analyze the full spectrum of value creation for the business.
  • The client leveraged the optimization features of the Marketscience SimOpt tool to compare budgets that were optimized for short versus long term returns to understand the differences in channel allocations. 


  • Marketing was found to be a driver not only of new customers but also existing customers who still need to take an action to renew which highlights the importance of keeping the brand in mind.
  • The decrease in the client's marketing spend contributed to a decrease in marketing's contribution to sales and increase in ROI, however the analysis uncovered that a better allocation of that reduced budget would have resulted in a 70% increase in customer LTV.
  • Looking at future budget allocation, and in order to optimize long-term value creation, an increase in outdoor and online podcast spend was recommended compared to short-term focused allocations due to their strong positive impact on brand perceptions. 
  • To maximize total business value over the long run, optimizations suggested increasing marketing spend 100% with an even split across Traditional and Digital channels.
  • A 20% increase in ROI was identified from the long-term optimization of total business value.

Subscribe to the Series

Share Now:
Posted in:

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top