CHALLENGE
The main challenge was addressing the perceived lack of value in existing models like MVAs and MMMs. Users noted issues like limited actionable insights, reliance on outdated data, and a lack of depth. Additionally, the focus on short-term ROI clashed with the company's move towards digital strategies for attracting younger consumers. This challenge was worsened by data ownership hurdles, biases in third-party data, difficulties in measuring long-term ROI, and internal management issues.
The main challenge was addressing the perceived lack of value in existing models like MVAs and MMMs. Users noted issues like limited actionable insights, reliance on outdated data, and a lack of depth. Additionally, the focus on short-term ROI clashed with the company's move towards digital strategies for attracting younger consumers. This challenge was worsened by data ownership hurdles, biases in third-party data, difficulties in measuring long-term ROI, and internal management issues.
PROVIDED EXPERTISE
UX Research
UX Research
OUTCOME
Our efforts resulted in a detailed research report outlining issues and offering strategic guidance. Additionally, our tailored personas aid in understanding user needs and decision-making. Our collaborative approach has paved the way for company-wide adoption, positioning them for success in a dynamic market.
In my role as a Visual and Service/Strategic Designer for this project, I proposed a Visual Identity System (VIS) to present the results. The concept aimed to visually depict the input data entering the model and the subsequent output recommendations.
The project focuses on the development of an ROI tool, an econometric model for budget allocation, encompassing MMMs and MVAs. Its primary goal is to comprehend the return on investments from financial and marketing initiatives within the company. Initially introduced as MVA (Marketing Variance Analysis) in the 90s, the model provided a current perspective on return on investment but lacked the ability to predict future returns. Over time, its usage declined, prompting the creation of this new tool as a new initiative.
In this project, we conducted interviews with 27 individuals from around the Globe in different OUs, including marketing professionals and finance experts familiar with tools like MMM and MVAs, internal SMEs who historically implemented such models within the company, and external SMEs from research companies. Our aim was to gain insights into past perspectives and future needs, facilitating the adoption of this tool across the entire company in the rapidly changing market landscape.
In the project's initial phase, we talked to the core team to understand the system and its features. We created storyboards to present our work to interviewees visually. During the interviews, we asked a range of questions, such as why they used the module, their memories of past MVA and MMMs, objectives, areas for improvement, and daily routine impact. We explored if it helped answer business questions, what they liked or disliked, and the frequency of module use. We delved into aspects like updates, workload, and reasons for discontinuation.
Moving forward, we discussed future perspectives, reactions to our storyboards, potential opportunities or concerns, implications, and benefits. We explored the likelihood of market and local adoption, the need for guidance, variables affecting adoption, trust in model recommendations, and the practicality of handling model output. We also assessed whether it was more beneficial for marketing or commercial purposes, tailoring our questions to their specific roles and perspectives.
Storyboard that would represent the future state of the ROI tool.
The main challenge we identified with MVAs and MMMs was a perceived lack of value. Users found shortcomings in actionable insights, relying on lagged data and lacking granularity, often appearing too common sense. Additionally, the analysis favored short-term ROI, which didn't align with the company's push toward digital experiences directed to gain recruitment of newer generations. This focus on short-term results also tended to benefit bigger brands and traditional media, posing a challenge for a company moving towards digital prominence.
Breaking down the issues encountered:
• Data Ownership Challenges: The company faces foundational data issues. This is primarily due to a lack of end-to-end ownership stemming from its distribution model.
• Biases in Third-Party Data: A significant concern arises from the heavy reliance on third-party data. This reliance introduces biases toward traditional mediums, prompting questions about the accuracy and fairness of insights.
• Long-Term ROI Measurement Dilemma: Research with SMEs has not provided clear solutions for measuring long-term ROI. This gap in understanding leads to difficulties in accurately attributing marketing initiatives.
• Multiplier Effect Complexity: Calculating ROI encounters complexity due to the multiplier effect. This complexity makes it challenging to address the diverse consumer influences on purchasing decisions.
• Internal Issues: Solutions to internal issues are largely related to management and communication. There are concerns about the perceived determinism of ROI recommendations.
• Financial Visibility Challenges: Financial stakeholders lack visibility on long-term ROI. This potential gap in understanding raises concerns about potential conflicts between marketing and finance regarding investment prioritization.
• Biases in Third-Party Data: A significant concern arises from the heavy reliance on third-party data. This reliance introduces biases toward traditional mediums, prompting questions about the accuracy and fairness of insights.
• Long-Term ROI Measurement Dilemma: Research with SMEs has not provided clear solutions for measuring long-term ROI. This gap in understanding leads to difficulties in accurately attributing marketing initiatives.
• Multiplier Effect Complexity: Calculating ROI encounters complexity due to the multiplier effect. This complexity makes it challenging to address the diverse consumer influences on purchasing decisions.
• Internal Issues: Solutions to internal issues are largely related to management and communication. There are concerns about the perceived determinism of ROI recommendations.
• Financial Visibility Challenges: Financial stakeholders lack visibility on long-term ROI. This potential gap in understanding raises concerns about potential conflicts between marketing and finance regarding investment prioritization.
Report including the historical timeline, insights, and personas developed.
In compiling the research report, we consolidated insights and interviewee quotes, outlining the identified problems. To guide the development of new solutions, we formulated "how-might-we" statements.
Additionally, we crafted four personas, mainly from the finance and marketing domains. One marketing persona relied on intuition, making decisions based on a hunch on their market sentiments. In contrast, another marketing persona prioritized data reliance, ensuring secure decisions with data-backed support. From the financial perspective, one persona struggled to comprehend marketing decisions without sufficient data and consistently requested data from them. The other financial persona focused on providing guidelines to the marketing team, holding them accountable for initiative outcomes and decisions.
