Consumers interact with brands across various mediums — their smartphones, computers, call center, in-store — just to name a few. Their interactions with brands — from viewing a TV ad to re-tweeting a promotion — are creating such a rich trove of data that marketers are left wondering: How do I glean relevant insights to optimize my marketing and media? Which channels should I optimize? How can I meet my growth goals while expanding into new, unfamiliar markets and channels? These questions keep marketers up at night; they are looking for best-in-class examples of measurement and analytics success. Well, look no further.
Our latest report, “Extract Business Value From Your Mix Model,” co-authored by Jim Nail, showcases USAA’s successful approach in leveraging marketing mix modeling to measure channel performance with greater precision and to identify and optimize future strategic investments, including marketing investments, product development, pricing structures, and organizational support. The report highlights USAA’s measurement and optimization challenges, how it used marketing mix to help refine metrics and identify the right levers to optimize business strategy and investments, and how it used the results to guide significant customer-driven changes at USAA. The case study is a good blueprint for firms that want to create a marketing mix model — and how to do it successfully!
We are thoroughly impressed by the analytics and marketing team at USAA; every decision made at the organization is driven by data and insights. Further, USAA is committed to using insights — including insights from its marketing mix model — to improve the overall customer experience.
Although it is true that TV gets the lion’s share of marketers’ budgets, that doesn’t necessarily mean that online measurement should be retrofitted to make “apples to apples” comparisons. On the contrary, marketers are becoming more accustomed to the granular level of metrics and accountability online media offers and will not be content to keep TV GRPs and get a “best fit” measurement of GRPs online. Even if the industry isn’t giving up on GRPs as TV currency, TV networks like CBS are moving away from GRPs as the standard and would like to get beyond age and sex if possible. As the online video market matures and over-the-top video consumption grows, I believe marketers will begin to see the discrepancy in accuracy between the ads they buy on a prime-time show on broadcast and the ads they buy that are delivered via a YouTube, Netflix, or Hulu app on a connected TV.