MMM Model Update Presentation – The most tense period for everyone ๐
I have been part of 100’s of MMM model presentation. However every model update presentations still makes me a little bit anxious.
And funnily the client side too feels the same anxiety.
Every MMM model update carries with it a lot of suspense and questions.
Such as:
โ Are the key drivers of KPI still the same or are there any surprises?
โ Did our brand equity increase or decrease?
โ Did the increased spends work ?
โ What happened to the competition effect? Did it wane or got stronger?
โ What is the level of saturation of various media channels? How has it progressed?
โ Did our price change affect positively or negatively?
โ Are our marketing campaigns still going strong or is there a decline?
The questions are a plenty and sometimes a model update can throw a few surprises.
These surprises are what causes the anxiety, since they threaten to diverge from the initial insights.
So what should one do when there is a substantial divergence from initial model insights?
โ Check if any data that should have been made part of the MMM update got missed out.
โ Check the model robustness.
โ Evaluate the incrementality tests.
โ Investigate if any force majeure event took place (natural calamities, pandemic etc.).
โ Check for any other extraneous factors (wars, policy changes etc.).
โ Speak to the client and explore reasons for any anomaly.
Just because a MMM model update can throw a few surprises, it does not mean we minimize or stop doing model updates.
In fact, more model updates means more chances of aligning with ground reality.
