A leading international telecom company, in anticipation of its expansion into eight international markets, was looking for a more strategic and systematic approach to allocating its marketing spend across geographies. Beyond regional complexities, limited data transparency coupled with a lack of in-house analytical capabilities translated into a poor understanding of the effectiveness of marketing spend by channel.
Strategy& was thus brought in to help design systems, dashboards and analytics; in particular:
- Identify the KPIs critical to success as well as the statistical frameworks to simulate and optimize different marketing scenarios
- Blueprint the future state system for the tracking and optimization of marketing spend
How we helped
The initial phase of Strategy&’s effort defined the strategic framework for marketing allocation decisions:
- We collaborated with our client to devise a cross-channel framework for tracking key performance metrics across marketing and response channels
- From there, we devised a series of metrics (KPIs) for gauging the success of marketing campaigns, one that took into account the true attribution by channel, as well as synergies across channels
- Both the marketing framework and the KPI scorecard were developed after a thorough baseline of our client’s existing data sets, tools and external data feeds – this was required to properly identify the sources, nature and quality of data that would serve as key inputs
We then conducted extensive vendor due diligence on potential vendors for this marketing optimization system:
- Documented requirements and prepared the RFP
- Evaluated multiple solution vendors and narrowed set for implementation
- Conducted cost benefit analysis and projected cost savings from overall program implementation
The final stage included development of a high-level implementation roadmap – organization, processes tech and analytics.
Strategy&’s efforts resulted in a tangible set of dashboards to properly measure the ROI on marketing spend, coupled with a detailed evaluation of those vendors best suited to deliver against this vision. As importantly, we defined the analytical and statistical frameworks for conducting marketing mix modeling within these systems.
These efforts resulted in a 2-3% efficiency gain in marketing spend over three years (18 month investment payback).