Marketing Effectiveness Analysis for Excel (by ModelSheet) evaluates the effectiveness of multiple marketing initiatives by analyzing the drivers for contribution margins of marketing programs. Marketing effectiveness is calculated using allocated revenues and estimation of marketing program depreciation times. The analysis also measures the profit performance of individual customers or customer groups and products or product groups.
Marketing Effectiveness Analysis for Excel is an ideal solution to identify the best and least performing marketing efforts and developing optimal marketing plans to maximize bottom line profit.
The Marketing Effectiveness Analysis Excel template can be customized online for specific business and marketing dynamics before downloaded. Flexible input parameters that drive the analysis include marketing program characteristics, sales program characteristics, marketing lead events, sales lead events, revenue and gross margin.
The marketing effectiveness contribution margin is a profit margin calculation whereby not all of costs in the organization need to be accounted for.
Key features of Marketing Effectiveness Analysis for Excel include:
Ability to allocate gross margin (revenue - cost of goods sold) to marketing programs, so that programs are recognized for selling higher margin products.
Ability to allocate gross margin from sales orders to specific marketing programs (spending event that promotes a product), program events (part of a program occurring at a specific date and location for a product). and lead events (prospective customer attending a program event) that reach customers who place orders.
Ability to allocate expenses to marketing programs, program events and lead events using fixed expenses and variable expenses. Fixed expenses not to change with the number of lead events while variable expenses do change.
Computation of contribution margin for a marketing program, program event or lead event by subtracting allocated costs from allocated gross margin.
Marketing Effectiveness Analysis for Excel integrates some key assumptions to refine the analysis:
A customer is defined as a decision network that collectively decides to buy a product or service rather than a person who attends a program event, places an order or uses the product. This enables the connection of marketing efforts through purchasing agents and intermediaries.
The time lag between a marketing lead event and a resulting sales order at the same customer is in important factor in estimating the effective impact of the lead event on the sale. Marketing programs with longer effective life (which can be specified as well as drop off speed) are less valued.
Total expenses are allocated over the program time period in a similar way as depreciation or capitalization of investment expenses under an economic value added framework.