Boosting sales by 15% through marketing optimization for a spa franchise

Impact

15%

increase in prospect sales measured in an initial experiment, attributed to optimized budget allocation

Full Automation

of marketing budget allocation and spend/impact reporting, eliminating manual reconciliation

Franchise-Level Visibility

real-time reporting across national, regional, and franchise-specific marketing performance

Challenge

Lack of visibility and ineffective marketing spend hindered growth

For a luxury spa franchise with hundreds of locations, ensuring marketing investments drive real value across national, regional, and franchise levels was a growing challenge. Without clear visibility into spend and performance, it was difficult to optimize marketing strategies and allocate budgets effectively. The client faced two key issues:

Limited Visibility: Minimal and delayed reporting of channel spend at national, regional, and local (franchise) levels made it difficult to assess marketing performance.
Inability to Improve Marketing ROI: Due to the lack of an empirical impact measurement strategy, the client struggled to make strategic investment decisions across marketing channels.

Solution

Data-driven marketing optimization to enhance budget efficiency

To solve these challenges, OneSix implemented a data-driven marketing optimization framework, leveraging advanced analytics and automation. Our approach was specifically designed to support a franchise model by providing both high-level and location-specific insights. Key aspects of our solution included:

Implementing a structured approach that accounts for national-, regional-, and franchise-specific effects on media efficiency and non-media influences.
Customizing adstocking and saturation functions, with parameters adaptable to specific groups.
Handling missing data and uneven time series across different franchise locations.
Incorporating multiple methods for time-based effects analysis.
Developing an optimization model tailored to the client’s specific needs, including group-specific constraints and budget allocations.

To bring this strategy to life, OneSix deployed a comprehensive suite of solutions:

Marketing Data Warehouse: Centralized all marketing and adjacent data into a unified data warehouse. Power BI was used to enable real-time, customizable reporting across all franchise levels.
Marketing Mix Modeling (MMM) Pipeline: Implemented an advanced MMM framework to evaluate the impact of various marketing channels on key performance indicators (KPIs), such as sales and customer acquisition. The MMM pipeline provided:

A structured method to quantify the contribution of each marketing channel.
Predictive insights to optimize future budget allocations.
Actionable recommendations to shift spending to high-performing channels.

Automated Marketing Optimization: Our proprietary MMM tool facilitated continuous, real-time budget optimization by integrating historical performance data, market conditions, and client-specific constraints.

Data-driven marketing optimization to enhance budget efficiency

Improved marketing efficiency and measurable sales impact

By implementing these solutions, the client gained the ability to make data-driven marketing decisions with confidence. Key outcomes included:

Full automation of marketing budget allocation and spend/impact reporting, eliminating manual data reconciliation efforts.
15% increase in prospect sales as measured in an initial experiment, directly attributed to optimized marketing budget allocations across channels.
Enhanced strategic decision-making through real-time visibility into national-, regional-, and franchise-level marketing performance.

Through OneSix’s expertise in data-driven marketing optimization, the luxury spa franchise gained unprecedented control over its marketing investments. With real-time insights and predictive modeling, the client can now continuously refine their marketing strategies, ensuring maximum return on investment across all franchise levels.

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