One of the countries largest retailers required help with their budget setting process, including how much to spend, which products to support and against which media channels. Over a two year period, by implementing our recommendations from the Econometric and Optimisation analysis, they were able to more than double their ROI.
First and foremost, to understand the key drivers of sales, Business Science built 50 econometric models, covering their key product areas and sales channels. The results of the models were then fed into a bespoke optimisation tool which allowed the client to optimise the marketing budget against short and long term sales targets.
The client was spending £30m a year on media. Through a series of workshops, the tool demonstrated that much of this budget was supporting sub-optimal product areas, leading to significant inefficiencies.
Over 2 years, through implementing the recommendations from the optimisation, the client has improved the ROI by 242%, more than doubling their return from marketing investment, both in the short term and the long term.