There are multiple use cases for Sellforte Media Optimizer. You can use scenario planning at different levels of marketing planning.
Estimate the effect of budget changes
Estimate the effect of budget increase
You can use Sellforte Media Optimizer to validate what effect the increase in budget have. For example, if you can validate that the budget increase doesn’t decrease media ROI, increasing budget makes sense.
Estimate the effect of budget cut
You can use Sellforte Media Optimizer to simulate, what happens to total sales with different levels of budget cuts like -5%, -10% or -20% etc. Simulating scenarios will help marketing team to show the effect on total sales and possibly prove that the cut makes or doesn’t make sense.
Media planning
Estimate the allocation between markets or media channels
You can use Sellforte Media Optimizer to create scenario that outputs investment allocation proposal per market and per media. Media Optimizer doesn’t only help with reducing the manual work of planning, it creates a recommendation where each dimension are equally taken into consideration. Media Optimizer is effective tool to remove human bias from planning!.
Tactical ad-hoc planning
You can also use Sellforte Media Optimizer for tactical ad-hoc planning. For example, if you follow a monthly sales target for online webstore sales and in the middle of the month, you see that sales target will not be reached. You can use Media Optimizer to see which channels you should invest to achieve highest ROI in order to achieve sales target.
Validating current media plan
With Sellforte Media Optimizer, you can also validate your current media plan, and make changes, if needed. You can set your current media plan as a reference scenario. Then you can build multiple alternative scenarios to compare those to your current media plan.
For example, you can let Media Optimizer optimize the media budget by a certain percentage (e.g. 30% or 100%), in addition to which Media Optimizer can suggest improvements to the weekly budget distribution.
By comparing different scenarios, you can validate your current media plan, and improve possible weak spots.
Finding ways to achieve sales targets
By choosing Incremental Sales Target or Total Sales Target as a optimization mode, you can analyze your media plan against your sales target. If you are tasked with achieving certain sales target, you can give that information to Media Optimizer in order it to give recommendation, how to achieve that target.
In addition to media channel split, Media Optimizer can provide information of the needed total budget. The Optimizer can also calculate the required return on investment to achieve a sales target and thereby provide information on whether it is possible to achieve the sales target profitably.
Explore under-utilized channels or markets
With Sellforte Media Optimizer, you can also explore what are the under-utilized channels, that you should invest more.
For example, if you are mainly focusing on lower-funnel channels and the final steps of the conversion, you can use Media Optimizer to validate if this is the best strategy. Media Optimizer recommendations can show if the current allocation is too biased towards lower-funnel channels and whether there would be room for extra budget in top-funnel channels like Prospecting. With Media Optimizer, you can get data-driven proof to change and explore different kind of media allocation and new channels.
With Media Optimizer, you can also detect, if some of your markets are under-utilized in terms of media-driven sales. Sellforte Media Optimizer uses weekly response curves to detect saturation points of different channels. With that information, Media Optimizer can give you recommendation to invest more in under-utilized channels or markets.