How to improve your MMM model

Enhancing Your MMM Model

Users can provide several key inputs that will help achieve the following:

• Accurate forecasting
• Precise ROI/CPA estimates

The inputs can fall into the following categories:

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Why These Inputs Matter:

• They help capture peaks and sudden shifts in performance, aligning actual vs. predicted revenue more closely and accurately.
• They provide deeper insights into the effectiveness of specific channels or tactics. Experiments, in particular, help the model derive accurate and meaningful insights about each channel's true impact.

1. Promotional Offers

Details on promotional campaigns can significantly improve the model’s accuracy:

• Time Range: The specific dates or time period when the promotion was active.
• Discounts/Offers: The level of discounts or special offers applied during the promotion. This helps account for spikes in sales or changes in customer behavior triggered by promotions.
• Promotion Types: Whether the promotion was a limited-time offer, bundled discount, free shipping, or any other incentive, this information helps in understanding different consumer responses.

2. Experiments

Sharing experimental results provides critical insights for model calibration:

• Conversion Lift Studies: Data from experiments that measure the incremental impact of media efforts on conversion rates. This helps in understanding the true contribution of each channel or campaign.
• A/B Testing: Controlled experiment data comparing variations in campaigns, creatives, or audience targeting, providing a clearer picture of what drives performance improvements.
• Geo-Testing: Geographical split tests where different marketing treatments are applied in specific regions. This helps isolate and understand the impact of campaigns across different locations.