As a digital marketing agency, staying ahead of the curve and expanding your service offerings is essential to remain competitive in today’s fast-paced business landscape.
One opportunity that agencies should not ignore is offering Marketing Mix Modeling (MMM) services to their clients.
In this recession climate, understanding the utility of every dollar invested in marketing is essential.
Marketing Mix Modeling allows to do exactly that.
In this blog post, we will outline the benefits of offering MMM services, discuss the potential pricing structure, and provide a step-by-step guide on how to run it successfully.
What is Marketing Mix Modeling?
Marketing Mix Modeling is a data-driven approach used to analyze the effectiveness of various marketing tactics and optimize the marketing budget allocation.
By leveraging historical data, MMM helps businesses understand the impact of each marketing channel on sales, allowing them to make informed decisions and improve their return on investment (ROI).
Why Should Agencies Offer Marketing Mix Modeling Services?
- 1. Competitive Edge: Stand out from competitors by offering MMM services, positioning your agency as a data-driven, results-focused partner for businesses.
- 2. Enhanced Client Retention: MMM provides insights into clients’ marketing performance, helping them optimize budgets and improve ROI, fostering long-term relationships.
- 3. Additional Revenue: Incorporate MMM into your portfolio to access a new revenue source, promoting overall profitability and growth.
- 4. Upselling Opportunities: Offer MMM as an add-on to existing clients, increasing revenue potential.
Pricing Marketing Mix Modeling Services
Pricing depends on factors like project complexity, client size, and customization level. Consider this adjustable pricing structure:
- 1. Basic Package: $5,000 – $10,000
– Small businesses with limited channels and budgets
– Basic MMM analysis and recommendations report
- 2. Intermediate Package: $10,000 – $25,000
– Medium-sized businesses with multiple channels and moderate budgets
– Comprehensive MMM analysis, recommendations report, and ongoing support
- 3. Advanced Package: $50,000 – $500,000+ (Used by large consultancy businesses)
– Large enterprises with complex strategies and significant budgets
– Customized MMM analysis, strategic recommendations report, ongoing support, and periodic reviews
How to Run Marketing Mix Modeling Services (Read till the end, I have a surprise for you)
1. Data Collection: Gather historical marketing and sales data from clients, including advertising spend, promotions, pricing, distribution, and more.
2. Data Preparation: Clean and organize data for accuracy and consistency, addressing outliers, missing values, and format inconsistencies.
3. Model Selection: Choose a suitable statistical model, such as linear regression, time-series analysis, or machine-learning algorithms.
4. Model Calibration: Train the model with prepared data, adjusting parameters for minimal errors and optimal predictive accuracy.
5. Model Validation: Compare model predictions to actual sales data, ensuring accurate representation of marketing channels’ impact on sales.
6. Insights Generation: Analyze model results to identify insights and recommendations, such as effective channels, budget reallocation, or strategy adjustments.
7. Reporting: Create an easily digestible, comprehensive report with visual aids to present findings and recommendations from the MMM analysis.
8. Ongoing Support: Assist clients in implementing MMM recommendations, offering periodic check-ins, performance reviews, and model updates as new data arises.
IT’S A LOT, DON’T PANIC THOUGH.
With Cassandra, you can automate all of these parts for an affordable price, and start running your first MMM in 1 hour.
Incorporating Marketing Mix Modeling services into your agency’s offerings presents a lucrative opportunity for growth and increased client satisfaction.
By leveraging data-driven insights, your agency can help clients optimize their marketing strategies and improve their ROI, ultimately strengthening your relationships and boosting your bottom line.
Stay ahead of the curve by adding MMM services to your agency’s portfolio, if you need help to start you can check our Marketing Mix Modeling Software Cassandra which automates all the processes of a Marketing Mix Modeling process.