A Data Enhanced MMM, Improved Collaboration, and a 10.3% Uplift
In the rapidly evolving digital landscape, brands have unprecedented access to consumers through a variety of channels, including digital promotions and influencer collaborations. These channels are direct drivers of purchase decisions but are also highly fragmented, making effective communication and marketing strategy crucial.
Media Mix Modeling (MMM), utilizing advanced regression analysis, allows brands to measure and optimize the performance of their marketing mix across various advertising vehicles and touchpoints, including critical retail levers like pricing and promotions.
Challenge
A leading Alcohol Beverage client faced several significant challenges that held them back from optimising their marketing investments:
Limited Historical Data: The available datasets were confined to a few years, with some data points being outliers that did not accurately reflect sales trends, potentially skewing the model results.
Neglect of Human Intelligence: Traditional MMM approaches lacked the capability to integrate manual insights, which are vital as each campaign varies significantly and requires distinct measurement approaches.
Generalization of Specific Events: Conventional models attempted to explain anomalies in sales data (like sudden drops or increases), with any unexplained variations relegated to a 'black box,' offering little to no insight for strategic decision-making.
Solution
Pivot&Co proposed a transformative approach to strategic planning for our client . Our ambition was to transition from a traditionally reactive model to a proactive, data-driven framework.
By collaborating closely with our client’s marketing team, we developed an advanced Bayesian-based Marketing Mix Model that harnesses both quantitative data and qualitative insights from experienced marketers. This approach significantly enhances the accuracy and reliability of marketing analytics, particularly by adjusting for the missing data that is often found in newer digital channels.
The key transformations we proposed included:
Enhanced Decision-Making Framework: Supporting more informed budget allocations and providing deep insights into channel performance and consumer behavior.
Quick Market Responsiveness: Utilizing real-time data analytics to swiftly respond to market changes, moving away from the slower, historical data reliance.
Additionally, our solution aimed to strengthen our client’s collaboration with their media agency, ensuring that both strategy and execution are tightly aligned for optimal impact. The proposed alignment was designed to foster a more agile marketing strategy, where decisions are based on current market dynamics rather than past trends. This would lead to more effective campaign management and better resource allocation.
Results
With Pivot & Co's innovative approach, our client was equipped with a powerful decision-making tool. This tool enhanced their ability to analyze channel sensitivity, facilitating more strategic future resource allocations. It has also been fully embedded as a transformational tool within the team, enhancing collaboration with their media agency.
Now our client is empowered with fact-based insights, enabling them to make decisions that lead to strong, measurable outcomes.
1
With the support of
consolidated reporting dashboard
60%
resulting in a
of its budget to digital channels
10.3%
Our client reallocated
performance uplift vs base line
