Case Study: How One Company is Driving Revenue with Marketing Mix Modeling
Spec work: Case Study
Sunny Four Inc. is a medium-sized fashion retail company based out of the United States. They approached M Analytics to leverage its expertise in retail analytics and help them design an effective marketing mix modeling solution.
The Challenge
Efficient transformation of data into insights is a crucial, yet elusive, component for staying competitive in the retail world. Customers want and expect multichannel experiences, where they can view a product in the store and purchase it online, or inversely have their online order delivered to the local brick-and-mortar business. However, with many separate channels, it’s easy for customer data to become siloed. Disorganized data could cause more harm that good, leading to customers being bombarded with repeat or conflicted messages, and ultimately shifting to competition.
James Smith, a senior marketing manager at Sunny Four, approached M Analytics to help him design an effective marketing solution. Sunny Four Inc.’s marketing activities spanned across many online and offline channels, including social media, paid search, print, display, email and print. James and his team were tracking all data manually. This resulted in:
Lagging insights due to the time-consuming data collection process
.The company not being able to meet customer demand on time, resulting in missed business and lost leads and customers.
The business struggling to identify their target customer and the best way to spend their marketing dollars because of the overwhelming amount of dispersed data.
The Solution
The company needed to figure out the effectiveness of their channels and tactics to decide how to allocate their marketing budget. They wanted to identify channels that could help them better connect to their customers and drive revenue, and to optimize their current campaign investments and strategies.
They hired M analytics to help them measure ROI for all marketing activities and choose an optimal marketing mix. M Analytics started out by collecting relevant internal and external info, including price, promotions and competitors’ data, and analyzed them using advanced statistical models to determine the impact on sales. Then, they ran simulations with different marketing spend scenarios for improved results.
The Result
Measuring effectiveness of their channels and campaigns has led to optimized marketing spend for Sunny Four Inc. As a result, in just eight months, the company’s revenues increased by 20% and total spend decreased by 15%. Before working with M Analytics, the retailer had to manually track the spends across its many channels. This was not only tedious and time-consuming, but it also put them at the risk of falling behind competition. Now, they were able to plan their marketing activities in real-time, and this freed their schedules to focus on strategy and further growth.
The Product has helped James and his team meet all their goals early and increase their day-to-day efficiency. It was now easy to compare monthly metrics across various marketing channels and to generate reports quickly and efficiently. M Analytics has helped Sunny Four not only streamline their marketing budget and increase profitability and efficiency, but also understand their customer. They were able to serve them better and the customer reviews improved. As the result of focusing on their target audience’s needs and wants and being able to do it on time, Sunny Four was able to reduce the cost of customer acquisition, get more leads and ultimately more business.
“We can make more time for planning and can meet our goals early. Now, we’re just excited about future instead of being worried about it. “
