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How to Optimize Marketing Mix Models

QC_Q4-2012_Optimize-Marketing-Mix-Models

Data Collection and Reliability are Key

Marketing mix modeling (MMM) is a valuable and complex analytical tool many brands use to quantify the sales volume impact of a brand’s marketing efforts across various vehicles. It requires careful and detailed data collection. Like a chef with his recipe, the dish is only as good as the selected ingredients. MMM is no different – the analysis is only as reliable as the data used to create it.

Partnering with companies that understand the importance of analyzing the right data and who have standardized procedures in place with leading MMM experts ensures data reliability and accurate program evaluation. In the digital space, Coupons.com jointly developed standard operating procedures (SOPs) with the leading MMM vendors to ensure brands are receiving the most accurate data.

Data Collection Best Practices

Working with a myriad of brands, Coupons.com developed a two-step process for digital coupon data collection to ensure reliable and thorough measurement of clients’ marketing activities.

Step 1Review data and evaluate campaign inputs

All data within the specified time period dictated by the MMM partner is pulled for review. Due to the variety of campaigns, including regional programs and national Digital FSI campaigns, some will not be measurable through MMM and should not be included as they will add unnecessary complexity to the model. During this step, guidance is provided by the MMM partner regarding which campaigns should be included. 

Step 2Detailed data collection and validation

For those campaigns identified as large enough to potentially read in the model, detailed data is provided to increase the likelihood of a campaign being detected and read properly. Additional details, such as redemption channel breakdown and ROI estimates, are also provided. The data provided through this process is essential in validating the model output, an integral part of the MMM process.

Takeaways

MMM, when executed correctly, can be an instrumental forecasting tool to optimize your promotional campaigns. When working with such a tool, remember:

Details matter – It’s imperative accurate data is collected and the right campaigns are included for measurement
Lean on your experts – Partner with companies that have relationships in place with leading MMM vendors to benefit from best practices and standardized processes
Collaborate throughout the process – From evaluation to data review to final results presentation, work closely with your partners
Complement your marketing mix results – Include additional insights and analytics not available through a model to round out total campaign learnings


To fully leverage the tool’s capabilities and benefits, Coupons.com should be involved as early as possible in the process.

 


To find out how you can optimize your marketing mix models, fill out the form below and a Coupons.com Incorporated representative will contact you. You may also call (650) 605-4600 or email QuickClips@couponsinc.com.

 

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