Marketing Mix Modeling
Optimize your advertising mix and promotional tactics to drive higher ROMI
What we do
Marketing Mix Modeling (MMM) enables marketers to measure the contribution of online and offline marketing elements and external factors in conversion. It has been widely adopted by firms, particularly in the CPG and retail space. Sigmoid’s MMM solutions empower modern marketers with insights on which channels and campaigns are high performing and revenue-impacting, so as to re-align strategies and deliver maximum business value. Whether it’s budget optimization across channels or measuring the campaign effectiveness, our Marketing Mix Modeling solutions have always remained an integral part of every marketing plan.
4-step process for effective Marketing Mix Modelling
Success Story
15% lift in new user conversion using MMM
Built a system to analyze impact of slow channels and generate faster MMM reports that optimize spends and ads tagging for new user acquisition.
Overcoming challenges while building Marketing Mix Models
Data Availability
Privacy laws and GDPR compliance make it hard to get customer identification or marketing data across channels / geographies
Incremental Sales
Imperative to utilize all major factors that impact base sales and attribute incremental sales to various marketing efforts
Data Flexibility
Models that are restricted to limited historical data often fail as they don’t provide broad enough insights
Multicollinearity
Undermining the impact of an independent variable from coinciding marketing activities
Lag Impact
The model should also be able to calculate the delayed impact of a marketing activity or campaign
Non Linear Effects
Different marketing campaigns can have complex relationships with sales, rather than linear impact
Frequently Asked Questions
As a statistical and ML-driven marketing method to determine the effectiveness of marketing campaigns, marketing mix modelling takes into account data from different marketing strategies to glean meaningful insights. It also measures a number of variables such as pricing, promotion, economics, competitiveness, and seasonality that affect marketing efforts directly or indirectly to accurately measure marketing ROI and its impact on sales.
Companies can approach marketing mix modelling through a powerful real-time simulation, and optimization software to conduct ‘what-if scenarios’ across a variety of business situations for scenario planning. They can also incorporate a rich set of customized data into predictive statistical models to gain a clear picture of their marketing efforts. Companies can identify issues and resolve them at the earliest to enhance the value of their marketing programs to align with overall organizational objectives. Companies can get an integrated approach to marketing mix including data management, predictive modelling, and more to unravel market trends and insights to help them with improving future sales.
Multi-Touch Attribution
