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Organic, a leading digital communications agency, today announced
the results of its predictive econometric modeling capabilities from
its year-long program with Jeep(R). Organic's Marketing Intelligence
practice has taken traditional modeling and measurements to the next
level by evaluating information from a much broader set of inputs and
continuously optimizing the marketing spend to enhance the Jeep brand's
return on investment (ROI). As a result, Organic's optimization and
prediction capabilities delivered a 15 percent savings, which when
implemented, returned $17 million in marketing value.
Potentially of greater impact to the Jeep brand's business, while
looking at the media spend across all channels, Organic was able to
predict total retail sales for Jeep within 1 percent of actual numbers
in 2008, despite tremendous turbulence in the overall economic market.
"Organic's econometric modeling transformed our approach to
evaluating data, from a 'rear view mirror' report into a 'reliable
projection tool' that helps Chrysler control marketing spend and manage
ROI," said Chuck Sullivan, Director, Interactive,
Chrysler LLC. "This kind of visibility and insight is extremely
important to us. We are now able to optimize marketing spend in a way
we didn't think was possible."
"Organic is ushering in a new age of marketing intelligence," said Steve Kerho,
Vice President of Analytics, Media and Optimization, Organic. "With
unprecedented accuracy, we were able to determine the best spending
levels to reach optimum sales given the economic environment for Jeep.
Where industry 'norms' predict retail sales averages between 10- 15
percent, we were delighted at our ability to predict within 1 percent
of actual numbers."
How Organic Optimized the Marketing Mix to Drive Efficiency and Forecast Retail Sales
Organic initially tackled Chrysler's disparate, dealer-centric
models and customized its analytics and search capabilities to uncover
inefficiencies within the marketing spend. The Organic team collected
custom data from a wide variety of sources (real-time, dealer,
corporate, offline, online, environmental and batch feeds) into one
consolidated data model.
Realizing the power of this approach, Jeep and Organic worked
together to create a series of proprietary algorithms to predict
business success based on multiple variables in the sales ecosystem.
These variables spanned the spectrum of data sources from something as
precise as web clicks, all the way to macro-economic factors such as
housing starts, the value of the dollar, gasoline prices and inflation.
This insight gave the Jeep management team the ability to optimize the
overall media spend, as well as spending by media channel, to achieve
marketing and sales objectives. The team continually optimizes
marketing spend based on any new information, and as a result, the
brand's advertising programs are now operating at unprecedented levels
of efficiency.
In addition to the Jeep brand, Organic has extended its analytics
capabilities to Dodge and Chrysler, as well as other clients. "For any
retail business - from banking to automotive to entertainment - the
online channel can be remarkably telling about the state of the
business if you know how to optimize the data appropriately," said
Kerho.
"This kind of insight is truly a dream come true for today's CMO,"
added Kerho. "In today's roller coaster ride of an economy, marketers
need not just any data, but data that can be interpreted and integrated
in a way that brings meaningful and immediate benefit to the business." About Organic, Inc. Organic is a leading digital communications agency that uses a
consumer-empathy-based approach, combined with a holistic view of the
digital landscape, to design and build exceptional interactive
experiences that effectively engage and persuade customers. Founded in
1993, Organic has offices in New York, San Francisco, Los Angeles, Detroit, and Toronto.
Adweek ranked Organic as the number one interactive agency in their
2007 interactive agency report card. Organic is a part of Omnicom Group
Inc.
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