Highlighted Summary:
- Company: OpenText
- Challenge: Lack of an effective attribution model for guiding agency spending and decision-making.
- Solution: Implementation of a B2B media mix model to create a collaborative, data-driven framework between OpenText and its media agency.
- Results: More informed and balanced budget allocation, improved agency collaboration, and strategic use of marketing resources.
Situation
OpenText, a leader in enterprise information management, found itself facing challenges with budget allocation and campaign effectiveness across various marketing channels, some of which were managed by an external agency. The company’s complex data landscape made it difficult to implement traditional attribution models, as data sources were siloed and often incompatible. As Mike Shin, OpenText’s Director of Marketing, explained, “We’re a company of acquisitions, so we have different silos of information to stitch together, even within the same campaign sometimes. It was almost impossible to get a comprehensive view quickly.”
This limitation hindered OpenText’s ability to make data-driven decisions about channel spend, reducing the effectiveness of their collaboration with the agency responsible for executing their digital spend.
Impact
Without a structured attribution model, OpenText faced several key issues:
- Inefficient Budget Allocation: In the absence of reliable data, OpenText struggled to identify the most effective channels for incremental spending. As Shin put it, “Digital marketing is often a dumping ground for incremental spend because we can activate it quickly, but we didn’t have a solid framework to tell us where to put those extra dollars.”
- Disjointed Collaboration with the Agency: The agency’s recommendations were often based on limited insights, and OpenText was left with only broad allocation suggestions. “Before the model, we basically made broad-stroke budget allocations, handed it over to the agency, and they’d adjust based on their recommendations,” Shin explained.
- Time-Consuming Data Management: The lack of reliable attribution meant that much of OpenText’s time was spent manually stitching together data and troubleshooting inconsistencies, detracting from the team’s strategic priorities. “It was a lot of meetings about data stitching and tracking nuances,” said Shin.
Resolution
To address these issues, OpenText implemented a B2B Media Mix Model (MMM) through Align BI, which created a centralized data table and new dashboards for simulating their marketing spend across channels. The model allowed OpenText to:
- Optimize Incremental Spend: The Media Mix Model enabled OpenText to make fast, informed decisions about how to allocate incremental dollars. “When we get this large swath of cash to spend, the model helps inform exactly where we should put it,” shared Shin. “It makes the planning process faster and more effective.”
- Enhance Agency Collaboration: The Media Mix Model served as a shared reference point between OpenText and their digital media agency, allowing for more strategic discussions. Shin elaborated, “Now, we can point the agency to the model and say, ‘This is what it’s telling us,’ and they can give their input. It’s a central framework we can all reference.” This shift from individual versions to a unified model improved alignment and trust in decision-making.
- Reduce Time Spent on Data Management: With the Media Mix Model, OpenText could focus on strategic questions instead of data management. “Before, we spent a lot of time asking questions about whether our data was correct. Now, we’re discussing how effective each channel is and where our dollars should go,” said Shin.
Through the model, OpenText could also isolate the impact of its spending on each channel without needing to stitch together every single data point. This was particularly valuable given the company’s disparate data systems. “You just need to know what you spent and the sales you generated,” explained Shin. “It’s a huge benefit not to have to worry about tracking every touch along the way.”
Conclusion: The B2B Media Mix Model has empowered OpenText to make faster, more data-driven budget decisions, strengthened its collaboration with agency partners, and freed up the marketing team to focus on strategy rather than data troubleshooting. “The model doesn’t give a final answer, but it gives us a solid framework to make better decisions,” said Shin. “It points us in the right direction, so we’re all working from the same playbook.”