The client’s marketing team was targeting customers across multiple channels through different campaigns for the acquisition of new customers. While measuring the efficiency of the channel, the channel’s contribution to the conversion of a user was calculated as a three-day first touch model. This model did not value the accurate contribution of a channel in the conversation of a user navigating through multiple channels. The objective was to design a framework to calculate the contribution of all channels in the acquisition of a customer and develop a channel mix model to optimize the spend across all the channels in order to increase the ROI and acquisition.
To address this, the team at Tredence used the following approach:
The client can maximize the overall ROI by allocating more budget to a channel which has higher returns.
With reallocated spend across each channel and ROI, we would achieve ~20% higher customer conversion when compared to the previous spend allocation.