Commercial Mix Modeling

Breadth and Depth of Analytics with Strategic and Tactical Insights

Why do I need this?

See the forest and the trees

Commercial Mix Modeling (CMM) is Analytic Partners’ proprietary solution that is the foundational analysis of our Unified Measurement offering. CMM incorporates brand, customer, operational, and touchpoint analytics to provide strategic and tactical results with both granular customer and full business views.

The focus of CMM is not limited to measuring how marketing programs perform but can also investigate deeply into granular beyond-marketing drivers and operational factors that contribute to performance outcomes. These additional layers include:

  • Branding & Long-Term Analytics
  • Campaign & Touchpoint Analytics
  • Customer Analytics
  • Operational Analytics

How does it work?

A decisioning system to overcome today’s challenges

Unlike traditional Marketing Mix Modeling (MMM), which is essentially a model with explicit functional forms, CMM is a framework or, in other words, a modeling and decisioning system. This decisioning system is holistic and addresses the full business and by being adaptive, can incorporate multiple dimensions tailored towards key decision lenses.

 

By blending advanced Machine Learning (ML)/Artificial Intelligence (AI) techniques with statistical and econometric models in a holistic and integrated system, supplemented by learning experimentation, CMM is the next evolution of business performance measurement.

 

What makes it effective?

Commercial Mix Models address the full business

CMM can identify strong or weak performance drivers and provide deeper insight by diving into the root causes of that performance. This is done through associating performance driver results with granular details – for example, marketing driver details in areas such as campaign execution, customer segment differentiation, operation factor variation, and long-term impacts. This systematic approach produces deeper and more actionable insights than a strategic MMM, offering tangible and operational activation plans in media optimization, customer targeting, and campaign/channel management. Overcoming the limitations of other solutions, Commercial Mix Modeling is:

 

  • More granular – by Geography, Store, Channel, and Persona
  • More holistic – goes beyond media and marketing for a full business view
  • More flexible – enables multiple views of data and insight to address a spectrum of strategic & tactical questions
  • More adaptiveintegrated with experimentation, brand, customer, and touchpoint analytics
  • Faster speed to insights – allows for modeling advancements such as always-on Live Models enabling quicker data and model updates

CMM answers questions like:

  • How do non-marketing drivers like competitive data and operational factors affect my ROI?

  • What is the impact of non-controllable factors like weather, competition, and the economy?

  • What is the most effective way to deploy my marketing budget across channels and tactics?

  • How much should we invest in online video and how should we allocate across video platform?

  • What is the best balance for short and long-term marketing investments?

  • How can I optimize offers by customer segment?

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