CASE STUDY: Econometrics with a pharmaceutical organisation

Working in the B2B2C realm, it is challenging to optimise marketing budgets with end consumer revenues. Our client, a large Global Pharmaceutical Organisation came to us with the following objectives

• Determine impact of Online Marketing spend on Offline end consumer revenue
• Estimate Return on Investment (ROI) for each relevant Marketing Channel
• Effectively communicate results across the business to drive change

With a complicated patient/consumer journey and operating across a number of markets and digital platforms the data challenge in itself required input from multiple business areas.

The marketing team were also keen to prove how effective and engaging their marketing activity was and to strive towards a better consumer experience.

Lynchpin approach

Drawing on our expertise within Economic and Financial modelling, Lynchpin used the power of Econometric modelling as a solution to this problem. Lynchpin, working side by side with the marketing team, forged relationships across the business to gather the relevant data and business expertise. Utilising Machine Learning tools a bespoke model was created and outputs disseminated across the business to drive change.

Step 1: Discovery

An essential first step of this project was to gather data and expertise across the business. Our team of consultants worked with people across Finance, Sales and Marketing to ensure all relevant data was collected and business insight was factored into the modelling approach.

Step 2: Analysis

Lynchpin built a bespoke model using an econometric machine learning technique and incorporated both internal and external economic factors. The analysis was transparent with all aspects of the data exploration and model built shared with the client to gain greater understanding on both sides and refine the model for actionable results

Step 3: Deployment

The results of the model were communicated across the business to gain trust and buy-in from key stakeholders. On going monitoring of the marketing investment was important and dashboards were built to track marketing performance and enable quick decision making. The modelling approach will be rolled out to further markets with data collection recommendations fed in to all markets to enable ease of analysis for future markets.

Marketing Spend:

Evidenced effectiveness of online channels in driving offline sales resulted in a threefold increase in Marketing budgets.

Channel Optimisation:

Transparent outputs during the analysis and modelling phases also pinpointed areas for optimisation within marketing channels resulting in data driven decision making on marketing spend and ongoing monitoring to ensure marketing remains optimised.