Having a strong understanding of what you want to achieve with MMM+ will help shape your unique model to provide actionable insights
Choosing a primary Key Performance Indicator (KPI) for MMM+ involves careful consideration of your business objectives, industry dynamics, and available data. Here are some steps to help you select a primary KPI for MMM+:
- Define your business goals: Start by clarifying the specific goals you want to achieve through your marketing efforts. Are you aiming to increase sales, brand awareness, customer acquisition, or profitability?
- Assess industry standards: Research and analyze industry benchmarks and standards for KPIs within your sector. This will provide insights into commonly used performance metrics and help you identify which KPIs are relevant and meaningful for your specific industry.
- Consider data availability: Evaluate the availability and quality of data required to measure different KPIs. Ensure that you have access to accurate and comprehensive data for the chosen KPI because it plays a big step in ensuring quality outputs and recommendations.
- Align with financial metrics: It is often beneficial to select a primary KPI that aligns with key financial metrics, such as revenue, profit, or return on investment (ROI). By directly connecting marketing activities to financial outcomes, you can demonstrate the tangible impact of your marketing efforts and facilitate decision-making at the executive level. Our most successful customers include and share the MMM+ outputs and recommendations with their finance and accounting departments.
- Consider relevance and measurability: Choose a KPI that is directly influenced by your marketing activities and is measurable with the available data. The KPI should provide actionable insights and enable you to track the effectiveness of your marketing strategies accurately.