Challenge: A leading communications company was challenged with driving greater sales with a reduced budget. The management team wanted AV&Co. to use their new, advanced analytics to understand the “real cost of acquisition” of all marketing sales drivers across offer, media and channel in order to make better investment allocations to generate more sales with less budget.
Solution: By using a new, advanced analytics technique versus the prevailing econometrics-based approach, AV&Co. was able to incorporate hundreds of drivers of sales performance into a single model to understand the real cost of acquisition for each tactic. Once the analysis was completed, AV&Co. created optimization recommendations and delivered a weekly optimizer tool for the client to make shifts as the business performance changed on a weekly basis.
Results: The client implemented the majority of the investment recommendations across markets, and subsequently experienced a 20% increase in sales directly due to the optimizations. AV&Co. continues to refresh the model for the client and closely tracks the performance of the marketing plan.