Econometrics & Marketing Mix Modelling
Surface the insights that empower decision-making across your organisation
What is Marketing Mix Modelling?
Similar to Marketing Attribution, Marketing Mix Modelling (MMM) – or sometimes referred to as Market Mix Modelling – is a statistical analysis method used for understanding the impact of your marketing and sales activities in driving conversion and revenue. MMM however tends to be focused on longer term outputs and incorporates data at a more aggregated level, unlike some of the typical marketing attribution models which are necessarily granular in their nature. This opens up the opportunity to include more external data sources into a model whilst also enabling optimisation on both sales and longer term brand equity investment.
Benefits of MMM
Our clients typically adopt our Market Mix Modelling services for one of the following reasons:
Quantify ROI in complex customer journeys
By working at an aggregated level, MMM models offer the flexibility to integrate more data inputs into your decision-making, e.g.
- Linking offline activity with online sales
- Linking online activity with offline sales
- Understanding the impact of external influences such as macroeconomic factors, seasonality, competition, etc.
Assess impact of past & present initiatives
MMM is based on exploring historical trends to determine the driving factors in your past activities.
This insight can highlight factors that have had both a positive and negative impact on your ROI and lead to more informed decision-making on both current and planned initiatives.
Inform strategic & campaign planning decisions
MMM provides the data-driven insight to inform budget planning processes.
Developed in clear and transparent steps, our models help you understand your optimal overall investment level, the allocation of that budget within each channel, and the impact of your desired levels of spend.
How does Lynchpin do it?
Our approach is simple. We work together with you to understand your objectives and deliver results that matter:
Experience & Guidance
The fundamentals of MMM are embedded in traditional statistical and econometric techniques. It is essential to use trained statisticians to develop your model and ensure it is applicable in the real world. At Lynchpin, we have expertise in Finance and Economics and experience in delivering econometric models across a range of industries and problems.
Optimise your business
From data gathering, to competitor dynamics, to business drivers – the needs of each organisation can be unique and varied. We build bespoke solutions that work for your business today while also enabling ongoing enhancements. We will look to align our modelling with other activities across the business to ensure a consistent approach to your marketing strategies.
Transparency & Monitoring
Working in partnership with you and your business, Lynchpin will deliver the insight along with the model. Our goal is not just to deliver a statistical model but to help you to understand the levers that drive the results. From automated dashboards to scenario planning tools, you can ensure your model becomes embedded into the day-to-day activities of your business and truly drives change.
