Choosing the right Marketing Mix Model (MMM) is an important business decision. The right MMM solution will help you understand your marketing impact, it will provide accurate cause and effect insights into your sales, and it can completely optimize your marketing spend.
Not all MMM solutions are the same. In 2022, it's essential that businesses choose an MMM with relevant features. This is necessary for staying ahead of a rapidly moving digital world, and gaining an edge on the competition.
In this guide, we will outline three of the most important features to look out for in your MMM for 2022 and beyond.
One of the most important elements of MMM for businesses to look out for in 2022 is the ability to scale effectively. Traditional MMM approaches can be expensive to scale. You have to pay for different models, which can make it difficult to expand on your marketing mix modeling operations.
Using MMM solutions that can scale at the fraction of the cost of traditional MMM should be a key consideration for businesses. This can be achieved by using a MMM solution that offers unlimited models.
With no restrictions on models, businesses can incorporate new marketing mix models as their marketing and sales efforts grow. This makes it far easier to scale MMM with a business, without having to increase any budget.
One of the challenges that businesses often face with MMM happens after they create a model and achieve great results from it. They use this model to optimize their marketing spend and effectively grow their business. Now, the business will need to add additional models to this. Doing this could be expensive and slow to put in place. If the business doesn’t apply this fast enough, the original MMM model alone won’t be doing enough to truly optimize their marketing efforts and spending.
So, when looking at your marketing mix modeling in 2022, consider a solution with unlimited models. This will help you save costs while achieving better MMM results. You’ll be able to apply these solutions faster, which will result in a faster ROI.
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Marketing mix models should include as many relevant factors as possible. The more factors that are implemented into the models, the more accurate their output and results will be.
It’s important to understand the amount of change that takes place in the marketing mix. You can’t just rely on the same factors that influence your sales, because these are always changing. If you just look at different marketing channels alone, you won’t be able to draw fully accurate insights from this.
Instead, businesses should incorporate internal and external factors into their models. Things like time lag and seasonality should be included for a deeper and more realistic understanding of how sales are actually being affected.
By doing this, marketers will be able to gain greater accuracy. They will be able to understand the full picture and achieve better cause and effect insights into their sales.
Many MMM models do not include these elements. If this is the case, you won’t be able to keep up with the changes that occur in the market. For example, seasonality can affect your sales in a huge way. If this factor isn’t included in your MMM models, then your results will be inaccurate and inconsistent.
For 2022 and beyond, businesses and marketers need to consider marketing mix modeling solutions that incorporate these things. All internal and external factors should be added to the models to be able to draw stronger insights.
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Modern marketing mix modeling should focus on automation and operationalization. Basically, MMM models should recalculate at the cadence of the business. Whatever scale or time frame your business is operating at, the MMM model you use should work in line with this.
Automation of MMM streamlines data insights that are gathered from multiple sources. Doing this will make it far more efficient to keep track of this data as it moves at a changing pace. This allows you to gain faster insights and a quicker MMM project turnaround.
Automation and operationalization of MMM is also focused on recalculating models at the pace of the business. The same cadence can’t be applied to different organizations and industries, so it's important to follow a model that adjusts and adapts to your business.
Ultimately, this means faster insights and greater accuracy. This is something that businesses should pay close attention to when choosing a marketing mix model solution in 2022 and beyond.
Marketing mix modeling is the best way to gain actionable insights to enhance your marketing and sales relationship. You can use MMM to properly understand exactly what results your marketing investments are achieving. In today’s world, businesses should be using MMM if they want to truly optimize their ROI.
It's important to pay attention to the right features when looking for MMM in 2022. If your business is set up with the wrong MMM, it won’t be able to gain insights that have as much of an effect. To really optimize their sales and marketing efforts, businesses need to have the right MMM solution.