Maximizing Marketing Effectiveness and Establishing Best Practice in Analytics
The Challenge
The business unit had not established a fact-based process or key metrics to evaluate the effectiveness of its marketing activities across several brands in the portfolio. The number of permutations for investment options seemed limitless, creating complexity that made decision-making difficult.
Data was also disparate and unorganized across the organization (Sales, Finance, Marketing), which created different interpretations of what was working and what was not.
The ability to leverage analytical capabilities was limited when we started. People did not have technical skills, the budget was negligible, and people were already engaged in projects and had limited capacity to take on more.
The Process: Analytics to Integrate Disparate Data
The first part of establishing the approach was to take stock of current views of the situation. In other words, LISTENING and LISTENING more. Conversations took place, one-on-one, with team members to learn about their hypotheses. This built engagement and enthusiasm to learn more as we got into the process. It also allowed people to express concerns (and doubts), which helped reduce conflict and resistance to the "change" being implemented.
The second part was consolidating the data and reviewing it. The data came in unorganized and was aligned and cleansed using both in-house support and external vendors. This gave us the ability to connect views, frame the problem, share information across the organization, and start to make correlations and inferences from the data. For example, the sales team provided activity data on in-store executions and marketers provided spending and other metrics on television and digital advertising. These data points had never seen each other, and all of a sudden, both departments saw their data in full context!
The next step involved pulling data together and applying advanced analytic processes. Econometric statistics were used to build elasticities for each activity in a fully integrated way. Then, using cost per activity, ROI was calculated, creating apples-to-apples KPIs for the first time. Data visualization tools were used to show correlation in an easy-to-digest format.
The rest of the process was really about integrating the insight into the business--first as a core team, then with the extended leadership team. Presentations, summaries, and communications were carefully designed and implemented combining the data, insight, and team alignment of the actions.
The Outcome - Better ROI & a Platform for Measurement
The team now had clear KPIs and ROI numbers for television, digital, radio, outdoor, and in-store activities. They also had key metrics for new product incrementality and channel distribution.
All this allowed them to make choices on where to spend. Through a series of scenarios (using Oracle Crystal Ball Simulator), we were able to estimate the potential revenue and profit outcomes for these choices.
The team implemented a plan which focused on the activities with the greatest reach and highest return. The integrated planning tool also ensured activities lined up on the calendar to maximize synergy (i.e. 1+1=3) Management was clear in its messaging across the functions, leading to better alignment.
Sometimes fewer is better. By consolidating activities behind the strongest drivers, market share grew 9 straight quarters, a record for the business. Team confidence increased in their decisions. Lastly, the team had a solution that was sustainable for future exercises, and the commitment was strong with senior leaders to continue leveraging the approach.
