Bringing together the art and science of marketing
It's the age-old question that has plagued marketers for years, "What part of my marketing is working?" And, as marketing becomes more fragmented, the question becomes harder to answer.
Telstra, Australia's largest telecommunications company, can have multiple campaigns in-market—across both traditional and digital media—at any one time. To better understand its customers and maximise return on marketing investment, Telstra wanted to implement a data-driven approach to provide deeper insights, faster. The company turned to Accenture for help.
Through a truly collaborative effort, Telstra and Accenture developed the next generation of Marketing Mix Modelling (MMM). Accenture knew MMM would need to deliver complex insights and make them understandable, believable and actionable. With this in mind, Telstra and Accenture worked together to co-design and develop MMM. Starting with the underlying data science, to how it would look and how it would be used, with different views for different user types. The application was built in Accenture's Insights Platform Design Studio.
At the heart of MMM is the new, cutting-edge machine learning methodology. It was developed locally by Accenture using 4,000 data variables and 900 Bayesian models. Compared with traditional statistical methods, this new machine learning accelerated approach not only provides deeper insights, but harnesses scalable cloud computing power to deliver results in 20 percent of the time taken earlier. The mathematics approach was reviewed independently by Professor Chris Dubelaar of Deakin University.
The approach taps into the growing wealth of data on:
And it is a key step in Telstra becoming a truly data-driven organisation.
MMM enables Telstra's marketing team to plan, track and optimise marketing investments in a fact-based way. It enables quick responses to changes in customer needs, market conditions and/or competitor behaviour. MMM helps the Telstra team understand the impact of marketing factors and factors independent of marketing activity in driving revenue. Additionally, MMM provides campaign-level, multichannel results and insights quicker than ever before.
Telstra now has a world-class marketing performance insights capability, with a range of strategic and tactical applications. The company is already making changes to the allocation of marketing spend, messaging and media based on insights gained from MMM.
"MMM is a living, breathing tool; as our market place changes and the way we market changes. MMM will evolve to keep pace."