Assessing Advertising Effectiveness
The retail business of a major mutual fund company was questioning the impact and targeting of an advertising campaign and sought Analysis Group's assistance in assessing the value of the campaign.
Analysis Group developed a detailed econometric model using transaction-level performance data to isolate the impact of the advertising campaign from other factors and determine its impact. In fact, several portions of the campaign had negative ROI, and we demonstrated that a revised approach to the targeting and timing of promotion could dramatically improve returns.
As an extension of the promotion-focused analysis, the client asked Analysis Group's help in determining from similar detailed transaction data what links could be drawn between satisfaction, loyalty, and profitability. Focusing on specific business processes, our team identified non-linearities in the drivers of overall satisfaction and loyalty to the institution. We related these findings to an overall profitability model to highlight the impact of improvements in specific areas of service.