Maximise the ROI of each PLN spent on marketing
As budgets for marketing campaigns grow, the question of how well these funds are being spent and whether they could be better invested becomes increasingly important. Measuring and evaluating the effects of the campaigns is therefore becoming a necessity. By combining data from multiple sources and using analytical tools, you can track which activities translate most into conversion to purchase and return on investment.
The greatest possibilities of measurement and optimisation are offered by mailing within the framework of direct marketing. Knowing the addressee of the message and being able to observe their later behaviour (it is worth doing so, both for online and offline business), let’s you connect the marketing action with the consumer’s later reaction.
The scoring models can help you to optimally select the promoted product range, message content and the moment of sending to maximise the probability of conversion and the cart value. In the case of periodical campaigns, it becomes important to manage the frequency of mailings, so as not to tire customers and not to evoke the feeling of “spamming” their mailboxes. Similar tools can be used for sending paper catalogues and marketing mailings. Due to the higher unit cost of traditional mailings, the optimisation of the recipient list using scoring models can bring even higher benefits compared to electronic mailings.
The scoring models based on the analysis of geospatial data can also support the processes of optimising the distribution of leaflets and unaddressed mail.
Digital advertising optimisation is possible with the use of advanced attribution models , which make it possible to estimate the impact of individual media and touch-points on conversion (also in terms of value).
For ATL activities in “traditional” media (TV, radio, press) econometric models can be beneficial. The conclusions based on such models help to decide on the size of budgets and their distribution among different channels. They also enable simulation of various scenarios and predicting sales reactions to changes in the amount and allocation of advertising budgets.
The promotional actions are an important aspect of marketing activities. Such mechanisms always entail a cost for the company, whether in the form of lost margins (discounts and price reductions) or products given “for free”. Measuring the actual return on such investments is usually a big challenge. Various promotional activities overlap. The phenomena of cannibalisation inside and between product groups are observed. What is more, the promotion may shift some of the demand from future periods, thus cannibalising the sales in subsequent weeks. Depending on the industry and product range, the strength of individual effects may vary. Nevertheless, the assessment of the effects and success of a promotion based only on the increase in the sales volume over its duration is insufficient and may lead to wrong conclusions, which in turn lead to sub-optimal decisions and allocation of the marketing budget. A multi-faceted analysis of the real impact of promotions on business is actually possible only on the basis of advanced analytical methods. The core is always to ‘clean up’ the sales generated during the promotion period from the sales which, without the promotion, would include other products from the same product group or would be generated in future periods. In turn, increased sales of goods from complementary categories should be added (the so-called halo effect). This is the only way to obtain information about actual additional sales as a result of the promotion (incremental sales).
The models built according to appropriately selected methods can estimate the strength and direction of the promotion’s impact, taking into account additional factors, such as promotions taking place at the same time for a different product range, seasonality, price flexibility, advertising support or the actions of competitors. The model can be used as a basis for the development of simulations of different variants of the promotional calendar and its optimisation not only for one specific action but for the whole sequence of actions properly planned in time.
Clients: Leading marketer from retail industry