McDonald’s Suomi on jo yli kymmenen vuoden ajan analysoinut markkinointinsa vaikuttavuutta ja optimoinut markkinointimixiään yhdessä Omnicom Media Groupin toimistojen OMD:n ja Brand Sciencen (nykyään osa Annalectia) kanssa. Tämä yhteistyö on auttanut McDonald’sia muuttamaan markkinointipäätösprosessiaan vahvasti tiedolla johdetuksi. Tätä tiedolla johdettua markkinointiprosessia jatketaan nyt yhdessä Annalectin kanssa Suomessa sekä muualla Pohjoismaissa.
McDonald’s Finland has analysed marketing effectiveness and optimized their marketing mix together with the experts of Omnicom Media Group agencies, OMD and Brand Science (now part of Annalect) for over 10 years. This relationship has helped McDonald’s to change the marketing decision-making process from gut-driven to data-driven. The data-driven marketing process is now continued together with Annalect in Finland and in the Nordics.
McDonald’s data-driven marketing approach has not taken away the creative spark, quite the opposite, as is proven by the numerous prizes McDonald’s advertising has garnered during the years. “Creativity that is based on intelligence and insight is always more impactful, than one driven by assumptions alone”, Christoffer Rönnblad, the Marketing Director of McDonald’s Finland. But most importantly, being able to measure the concrete ROI of marketing activities has brought tangible business benefits year after year: both in euros and improved marketing processes.
McDonald’s is currently using the most advanced marketing analytics and optimization platform in the Nordics. Seeking to always be on the forefront of marketing, they have never settled for the status quo. Nor do they do it now. For McDonald’s, the next plan is to make the data driven marketing process even more agile and real-time. Another exciting step they are taking together with the developers and data scientists at Annalect.
See and hear what what Christoffer Rönnblad, the Marketing Director of McDonald’s Finland has to say.
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The Backbone of Data-Driven Marketing at McDonald’s is Sales Modeling
McDonald’s Finland has a long history of conducting Annalect’s sales modeling based on econometric modeling. The results of the modeling are in the core of data-driven decision making at McDonald’s, helping them to optimize all of their marketing activities.
In McDonald’s case approximately 30 attributes from different data sources form a clear picture of sales and enables the examination of the result from multiple perspectives. In addition to the effect of different marketing activities, they can see, for example, to what extent the competitor activities, weather or customer experience affect their sales. In addition to evaluating historical performance, a better ability to predict future sales is essential. All of which can be done data-driven with the help of sales modeling.
For McDonald’s the modeling is run twice a year. This helps them to operationalise the results and to assess the effect of even very recent activities. This is another crucial aspect for McDonald’s, whom want to learn from all activities and improve fast on areas where it is possible. As an additional benefit, the modeling generates ideas that can be tested, enhanced and implemented at scale to continuously increase the marketing effectiveness.
The Key Benefits for McDonald’s Are Insights and Business Results
Thanks to sales modeling, McDonald’s knows exactly to what extent does marketing attribute to the sales development. In brief, it helps to understand how much one guest visit costs and how much revenue a marketing activity has brought both in the short term and long term.
“One of the biggest benefits from the continuous sales modeling process has been the ability to learn from earlier marketing activities and media choices”. This information can and is being used to optimize the marketing mix in an exponentially tightening competitive landscape. The analysis gives assurance on where to invest and where to not, and improves our business results, says Christoffer.
The Most Important Part of the Modeling Process: Optimisation and Actions
At the heart of all sales modeling projects is the optimized marketing plan, which drives concrete actions inside McDonald’s and their marketing partners. The sales modeling results are implemented together with OMD and ad agencies to yearly marketing and campaign planning. They are also e.g. a critical part of the yearly negotiations with media. Without modeling, the critical business decisions would have been based mainly on gut feeling. As the Marketing Director of McDonald’s Finland says: “If you don’t have data, you are basically only a person with opinion. We need data and technology as much as we need stories and wow-experiences to our customers.” The decisions are much easier to justify for the board when you have the data to back you up and it provides assurance to decision making.
At McDonald’s the sales modeling has become a well-known concept and way of working in the organization. They also see that data driven decision making is increasingly important in the future. Therefore, there has already been discussions with Annalect to take yet another step as the leader of the data-drive marketing evolution and move to a continuous sales modeling process, which enables a more real-time reactions and even better marketing ROI.
Are you interested in knowing your marketing ROI and the results significantly? Our benchmark of over 200 models per year in the Nordics tells that the average improvement of ROI on the first year is with our help +18%. One good way to get the ball rolling would be to read our advice for constructing a data-driven marketing plan. Naturally, if you want to get in touch, don’t hesitate to contact us.