Marketing Mix Modeling (MMM) with GrowthOS is a powerful tool for businesses seeking data-driven insights to optimize their marketing strategies and drive better results. By analyzing various marketing variables and their impact on sales, MMM provides valuable insights into how marketing efforts contribute to a company’s success. But one of the most common queries we get from brands is around the data required to create and sustain a marketing mix model. In this article, we’ll break down a few key questions regarding the marketing mix modeling requirements: How much data do you require to model with GrowthOS? What types of data are included? And what if you are missing data sets?
How much data is required to run a marketing mix model?
The amount of data required for Marketing Mix Modeling can vary based on factors such as the complexity of your business, the number of marketing channels, and the granularity of analysis you seek. Generally, the more data you have, the more accurate and reliable the results will be. To power the model that runs GrowthOS, we suggest starting with a minimum of two years worth of key data sets.
What types of data will I need to collect?
To conduct Marketing Mix Modeling successfully, you’ll need a diverse range of data that covers various marketing elements and sales performance. The key data types you’ll need to collect to power GrowthOS are: sales data, paid and owned media, brand data, pricing and promotion, competitor data, and earned media as well as over 100 external data sources including
- Sales Data: This forms the core of MMM, as it quantifies the performance of your products or services over time. Sales data includes information on units sold, revenue, and any other relevant sales metrics. It should be broken down by product, region, and time period.
- Marketing Expenditure: Include data on all your marketing initiatives, such as marketing and advertising spend across different media channels (TV, radio, digital), promotional activities, public relations, and other marketing activities and campaigns. This data should be recorded over the same time period as your sales data.
- Owned and earned media data: Including data from web properties and social media channels
- Brand data: measuring unprompted awareness and consideration of your brand
- Market Share Data: Data on your market share and the market share of your competitors will provide a critical context for analyzing your marketing efforts’ effectiveness.
- External Factors: To understand how external factors influence sales, you’ll need to incorporate data on economic indicators, seasonal trends, competitor activities, and any other external variables that could impact your business performance.
Dozens of other variables are also included in the GrowthOS model to help augment your data for model fit.
What if we’re missing data required for marketing mix modeling?
It might seem like a big problem if you don’t have all of these data sets to hand. But it’s actually not at all uncommon for businesses to have gaps or missing data sets. While having complete and accurate data is ideal, missing data won’t mean that you can’t work with us. There are several strategies to address data gaps and we will explore them all with you before deciding on a course of action.
Data collection for marketing mix models might seem like a difficult task, but Mutinex is working hard to make the process seamless for our customers. Our onboarding process is designed to make data collection simple and fast. By ensuring you have the right data and adopting best practices, we can provide invaluable guidance for optimizing your marketing strategies and achieving better results in a competitive landscape.