Determining the quantitative Return on Marketing Investment (ROMI) is among the top challenges that CMOs and marketers face, according to the Deloitte CMO Survey 2019. Some typical questions that marketers need to answer are:
- What is the contribution and ROI of each marketing activity like TV, print, or digital advertising, promotions and sponsorships?
- How do I optimally allocate my marketing budget across various activities?
- What is the “best” advertising delivery?
- How many weeks to advertise and in which weeks?
- What is the impact of promotions on sales?
- What is the ROI of direct-to-consumer events such as sampling?
Marketing Mix Modeling (MMM) is a methodology that uses predictive modeling to quantify the impact of various marketing activities on any Key Performance Indicator (KPI) such as sales, revenues, number of customers, number of installs etc. and allocate marketing budgets optimally for maximum ROI. However, many MMM solutions are constrained by a few drawbacks. First, solutions are like ‘black boxes’ and do not provide visibility into the models used and basis for insights. Second, companies are reliant on external vendors every time they need to run analytics and have no option to do this in-house. And third, MMM solutions have traditionally been time and resource intensive, making them prohibitively expensive to scale across the organization or update regularly.
Demand Drivers is a ROI measurement solution that allows companies to overcome these limitations. It is a cloud-based, AI-driven automated platform that allows brands to run predictive marketing analytics in-house, with the cost, scale and speed advantages they need.
Key Features & Benefits
- Do-it-Yourself Option: It allows companies to run the entire MMM process in-house, with adequate training and back-end support to get started. Brands can maintain their data and results on their systems, ensuring their privileged information is protected.
- Cost-Effective: It helps stretch budgets further by minimizing reliance on external vendors and making internal teams more productive. It allows companies to leverage the teams, data assets and cloud infrastructure they already have.
- Scalable: The solution uses an integrated, repeatable, proven process to deliver ROI guidance with higher quality, across multiple brands or markets. It can be easily scaled to win broader support for ROI analysis across the organization.
- Transparent: Demand Drivers does not use black box methods. The back-end code is accessible to clients’ data science experts. While it offers multiple methodological options off-the-shelf, it also supports customization as required by clients.
- Cloud-ready: Demand Drivers can run on the client organization’s cloud, working with their data sources and reporting tools. It can also be securely hosted by Analytic Edge to get clients started quickly.
- Training & Support: Analytic Edge will provide training and support as per client requirements to help clients get the platform up and running.
- Training: This will include an extended session explaining all the modules of Demand Drivers to familiarize client teams with the platform features and the MMM process. It will also include an in-depth program over a few weeks to provide clients hands-on experience in developing an MMM model using live data.
- Support: Analytic Edge will typically host the platform until the end of the training period. Thereafter, it can be migrated to client cloud, if desired. Ongoing technical and user support, as well as detailed documentation, user manuals and FAQs on platform feature will also be provided.