Jeep(R) Leverages Organic's Marketing Intelligence to Predict Retail Sales Within 1 Percent
Organic's Modeling Optimizes Marketing Mix and Spending Efficiency to Forecast with Tremendous Accuracy
SAN FRANCISCO, March 23 -- 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."
For a visual of the ROI model: http://www.undergroundaward.com/organic/jeepanalytics .
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. To learn more about Organic and the Organic(R) services, please visit www.organic.com or read our blog at http://threeminds.organic.com/.
Omnicom is a leading global advertising, marketing and corporate communications company (http://www.omnicomgroup.com/). Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.