- Travel & Hospitality
Boosting sales by 15% through marketing optimization for a spa franchise
Overview
Lack of visibility and ineffective marketing spend hindered growth
For a luxury spa franchise with hundreds of locations, ensuring marketing investments drive real value across national, regional, and franchise levels was a growing challenge. Without clear visibility into spend and performance, it was difficult to optimize marketing strategies and allocate budgets effectively. The client faced two key issues:
- Limited Visibility: Minimal and delayed reporting of channel spend at national, regional, and local (franchise) levels made it difficult to assess marketing performance.
- Inability to Improve Marketing ROI: Due to the lack of an empirical impact measurement strategy, the client struggled to make strategic investment decisions across marketing channels.
Our Solution
Data-driven marketing optimization to enhance budget efficiency
To solve these challenges, OneSix implemented a data-driven marketing optimization framework, leveraging advanced analytics and automation. Our approach was specifically designed to support a franchise model by providing both high-level and location-specific insights. Key aspects of our solution included:
- Implementing a structured approach that accounts for national-, regional-, and franchise-specific effects on media efficiency and non-media influences.
- Customizing adstocking and saturation functions, with parameters adaptable to specific groups.
- Handling missing data and uneven time series across different franchise locations.
- Incorporating multiple methods for time-based effects analysis.
- Developing an optimization model tailored to the client’s specific needs, including group-specific constraints and budget allocations.
To bring this strategy to life, OneSix deployed a comprehensive suite of solutions:
- Marketing Data Warehouse: Centralized all marketing and adjacent data into a unified data warehouse. Power BI was used to enable real-time, customizable reporting across all franchise levels.
- Marketing Mix Modeling (MMM) Pipeline: Implemented an advanced MMM framework to evaluate the impact of various marketing channels on key performance indicators (KPIs), such as sales and customer acquisition. The MMM pipeline provided:
- A structured method to quantify the contribution of each marketing channel.
- Predictive insights to optimize future budget allocations.
- Actionable recommendations to shift spending to high-performing channels.
- Automated Marketing Optimization: Our proprietary MMM tool facilitated continuous, real-time budget optimization by integrating historical performance data, market conditions, and client-specific constraints.
Results
Improved marketing efficiency and measurable sales impact
By implementing these solutions, the client gained the ability to make data-driven marketing decisions with confidence. Key outcomes included:
- Full automation of marketing budget allocation and spend/impact reporting, eliminating manual data reconciliation efforts.
- 15% increase in prospect sales as measured in an initial experiment, directly attributed to optimized marketing budget allocations across channels.
- Enhanced strategic decision-making through real-time visibility into national-, regional-, and franchise-level marketing performance.
Through OneSix’s expertise in data-driven marketing optimization, the luxury spa franchise gained unprecedented control over its marketing investments. With real-time insights and predictive modeling, the client can now continuously refine their marketing strategies, ensuring maximum return on investment across all franchise levels.
Ready to unlock the full potential of data and AI?
Book a free consultation to learn how OneSix can help drive meaningful business outcomes.
