One of the most important challenges marketers face is determining the Return on Marketing Investment (ROMI) so that marketing spending can be allocated optimally to drive maximum sales, revenues and growth. Marketing Mix Modeling (MMM) is a technique that is widely used by companies across industries to measure ROMI and optimize marketing spends.
However, there are several limitations in the way MMM is typically done today. Most MMM solutions are extremely time and resource intensive. Integrating and ingesting data from numerous sources, determining the right attribution models and then generating insights takes months. As a result, the insights generated are often based on data that is 8 to 12 months old. They may help in diagnosing what worked and what didn’t in the past, but are not very useful for guiding future marketing planning decisions. A second limitation is that businesses are completely dependent on specialists for every step of the process, making it difficult to generate insights quickly and on-demand.
Demand Drivers is an ‘always-on’ cloud-based marketing mix platform that integrates the entire process and automates key steps to complete ROMI analyses faster, helping companies generate real-time, actionable and “forward-looking” insights to make quick marketing spend decisions.
Key Features & Benefits
- Integrated & Automated Solution: Demand Drivers TM has six integrated modules covering all phases of the marketing mix analysis process. Integrated data ingestion and review tools help teams set up new analyses and publish updated results faster. An integrated modeling module allows teams to create or modify marketing mix models on the fly, with extensive control over the methodology. The planning, simulation and reporting modules make the results accessible to marketers, answering their ROMI questions. Integration eliminates hand-offs, improves quality, and speeds decision making.
- Always-On: The solution allows new data to be loaded and new analyses to be started at any time, with actionable insights generated in a few days instead of months. This allows marketers to assess the impact of recently executed marketing activities and optimize spending and plans for better results.
- Marketing Planning Tools & Capabilities: Demand Drivers TM provides unprecedented analytical tools and capabilities to marketers to help them continuously measure marketing ROI, analyze variances between forecasts and actual performance and take informed decisions for future marketing planning.
- Variance Analysis generates Due-To reports to diagnose reasons for variances in sales vis-à- vis forecast. This helps accurately determine how much various marketing spends contributed or did not contribute to forecasted sales.
- Simulation Analysis runs simulations on the marketing budget, varying different potential spends to evaluate the impact on sales and revenues.
- Optimization Analysis recommends the optimal marketing allocations to maximize sales and revenues within existing budget constraints.
- Real-Time Performance Tracking & Gap Analysis helps track actual performance versus forecast in real-time and take ongoing corrective actions to bridge gaps and achieve sales and revenue targets.
- Full Service or DIY Engagement Models: Demand Drivers is offered as a full-service solution with complete transparency into the modeling process, for companies that prefer to outsource the process. It can also be offered on a do-it-yourself model with adequate training and back-end support, for companies that would like to run the entire MMM process in-house.