Highlighted Summary:
- Company: Simpro
- Challenge: Inefficient marketing spend and difficulty in proving ROI with traditional linear attribution models.
- Solution: Implementation of a B2B Media Mix Model with Align BI, enabling more strategic allocation of marketing budgets and enhancing collaboration between marketing, sales, finance, and the exec team.
- Results: Streamlined decision-making processes, improved ROI tracking, and stronger cross-functional relationships.
Situation
Simpro, a growing job management software company, faced challenges with marketing attribution and budget allocation. Traditional linear attribution models limited their ability to track marketing’s true impact, as these models required direct, traceable links between marketing efforts and closed deals. As Louisa Smythe, Director of Global Marketing Operations noted, “In a linear attribution model, I need to be able to take my red pen and draw a straight line from a marketing interaction to closed business. But there’s so much happening that doesn’t get captured in the system.”
The team needed a way to better connect marketing spend with results and then optimize that spend, especially for initiatives that couldn’t easily be tracked, such as brand awareness efforts.
Impact
Without a good budget optimization model, Simpro encountered several challenges:
- Inefficient Budget Allocation: Marketing resources were sometimes directed to areas that weren’t generating the best results. “At some point, you reach that diminishing level of returns,” explained Smythe, “where your next dollar is no longer having the same impact as your first hundred.”
- Difficulty Proving ROI: The team spent hours at the end of each month manually validating marketing’s influence on deals, an exhausting process with limited reliability. As Smythe put it, “We had marketers digging through hundreds of closed deals to show impact—it was taking hours every month.”
- Limited Strategic Conversations: Without a broader view of how marketing impacted the business, it was challenging to engage in data-driven discussions with key stakeholders. “We didn’t have a good model to show executives why simply throwing more dollars at digital media isn’t always the answer,” the leader said.
Resolution
To address these challenges, Simpro partnered with Align BI to implement a B2B Media Mix Model. This model provided a more holistic view of how marketing activities contributed to business outcomes. As Smythe shared, “Media mix modeling widens the aperture of what marketing can get credit for. It helps us tie business results to initiatives like brand awareness and trade shows that would otherwise be missed.”
Key benefits included:
- Optimized Marketing Spend: The Media Mix Model allowed Simpro to pinpoint where spending was most effective. “We can now see where returns start to taper off and where we’re actually over-rotated, so we can pull back and invest elsewhere,” said Smythe. This insight helped ensure that every marketing dollar was working as hard as possible.
- Data-Driven Decisions: With reliable data, Simpro could confidently discuss budget adjustments and set realistic expectations. “It’s nice to set a clear expectation with leadership and say, here’s what we can achieve with this much investment,” noted Smythe.
- Improved Cross-Functional Collaboration: The model facilitated strategic conversations with the c-suite and the board of directors, helping align marketing spend with revenue goals. “The model’s data empowers us to have productive discussions with leadership about how we’re using our budget and where else we might invest for maximum impact.”
The B2B Media Mix Model also allowed Simpro to explore new growth avenues by analyzing performance trends across regions. As the marketing lead shared, “This model lets us see why something works in one region and not another. It’s helped us move beyond just copying what works somewhere else and actually understanding the unique dynamics of each market.”
Conclusion: Simpro’s adoption of a B2B Media Mix Model has transformed their approach to marketing, allowing for smarter spending, better decision-making, and more robust data-driven discussions with leadership. “It’s not about guessing anymore,” said Smythe. “With this model, we’re able to be more predictive and proactive, moving from justifying past activities to planning future investments strategically.”