Gary Danks, General Manager at AIM by Kochava, outlines five primary reasons why businesses are increasingly opting for SaaS-based Marketing Mix Modelling (MMM) products rather than developing these solutions in-house:
- Bridging the Expertise Gap: In-house MMM solution development requires a unique combination of marketing savvy, advanced statistical skills, and the ability to convert data into practical insights. This expertise is often vested in a few key personnel, posing a risk if they depart. SaaS platforms provide access to a team of seasoned experts, ensuring the MMM solution remains advanced and stable despite staff changes.
- Expanding Data Horizons: MMM models developed internally are typically limited to the company’s own data, which can restrict the breadth and accuracy of insights. SaaS platforms, in contrast, incorporate a wider spectrum of market intelligence, encompassing diverse industry insights and consumer behavior trends. This leads to more comprehensive and accurate analyses.
- Securing Future Competitiveness: The marketing field, especially in the digital and app arenas, is evolving rapidly. SaaS platforms are inherently adaptable, regularly integrating the latest in market trends and technological advancements. This adaptability ensures that MMM strategies are not only up-to-date but also future-proof.
- Cost-Effectiveness: Building an MMM solution in-house is financially demanding, encompassing not just the initial build but also ongoing costs for updates, maintenance, and expansion. SaaS solutions, with their subscription-based model, offer a cost-effective alternative. They provide scalability and flexibility without substantial upfront investments.
- Accelerating Market Readiness: Developing an MMM solution internally can be a lengthy process, potentially taking years to fully operationalize, during which market opportunities might be missed and the model may become outdated. SaaS platforms, however, enable immediate implementation, allowing businesses to quickly harness advanced MMM capabilities and maintain agility in a fast-paced market.
Danks highlights that this trend towards SaaS for MMM is reflective of a wider shift in marketing technologies. The movement is propelled by the demand for specialized expertise, broad data insights, adaptability to market shifts, financial efficiency, and swift market entry. He suggests that embracing SaaS solutions for MMM can transform a company’s approach to marketing mix modelling, ensuring agility, comprehensive insight, and value in their marketing efforts.