But like any effective tool, MMM needs the right operator. MMM projects typically require both analytical skills and a solid knowledge of the business to produce meaningful insights. What is more, it’s hard to believe that in the past, these projects were executed uniquely by external “experts” – who may have been good data scientists but who lacked crucial knowledge of the company’s historical data (context is essential for measuring marketing effectiveness accurately). For this reason, many brands are bringing their Marketing Mix projects in-house. Here are 5 good reasons why this might be right for your company:
# 1 Saving time when collecting and securing sensitive data
An MMM project relies on a vast amount of commercially sensitive data that needs to be collected from different channels. Internal management of the MMM project will ensure:
- A good understanding of the data used (context)
- Compliance with internal data governance rules
- Security and discretion
# 2 Ensuring methodological consistency
External consultants specializing in MMM projects may have their own unique methods when it comes to building models. Each company uses different assumptions, processes and measurement tools. Should the brand need to change providers, it might cause a consistency issue and end up with wildly different results with little understanding of why the results vary.
With an internal MMM solution, brands can maintain methodological consistency. Moreover, the use of business tools offered in a SaaS (Software as a Service) style is much more efficient and long-lasting compared to the development of Python or R codes. SaaS business solutions designed by business experts have the potential to meet the requirements of multiple user types. Such solutions are far more competitive than the in-house development of code which calls for a significant investment of time and resources. Should the data scientist behind the model ever leave the company, the successor will not be dependent on the code initially developed.
# 3 Relying on internal expertise
Each sector (consumer products, retail, automotive, luxury, etc.) has its own consumer and business expertise. The integration of this expertise with the modeling process is essential to guarantee the operational impact of the models. A company specializing in MMM can rarely reach the level of business understanding of an internal team, even with extensive sector expertise. By internalizing the project, the company can rely, from the beginning of the project, on business experts who will guarantee the operational robustness of the model.
# 4 Speeding up the production of marketing models
The development stage of an MMM project is crucial and requires the collaboration of different stakeholders:
- Operational stakeholders will process the data and build the model.
- Model users and Marketing Managers will provide the data to be used in the model.
Internalizing the operational part of the project will result in having a better overview of the model production chain, creating better collaboration between stakeholders and measuring marketing effectiveness in a faster and more autonomous way.
# 5 Promoting internal studies
An MMM model makes it possible to measure the effectiveness of marketing levers on a business variable (turnover, store visits, registration on a website, etc.). To get a complete picture of a campaign’s effectiveness, the quantitative analysis of the profitability of marketing actions must be compared to a qualitative measure provided by brand awareness and brand image studies. By bringing together various stakeholders within the company, the internalization of MMM projects facilitates this synthesis.
In the context of the end of third-party cookies, regaining control over the measurement of marketing effectiveness thanks to MMM is more relevant than ever. However, such an internalization process will benefit from specific support from MMM experts who can provide the brand with technical support and advice. Partnering with experts to build your internal capability will be very valuable during the development stages of the first models.
To continue the conversation about Internalizing your Marketing Modeling projects, register for our upcoming webinars with Charles XAVIER:
- Webinar in French "Vos données, du bitcoin à l’état brut à miner vous-même", 22.07.21 Register here
- Webinar in English "Your data, a raw bitcoin to mine yourself" 29.07.21 Register here