Lityx BudgetOpt

The Marketer's Challenge

Marketing is very much an art, but being an effective and efficient marketer requires science. Lityx BudgetOpt assists marketers with key decisions regarding how to allocate their limited budget resources. The goal: maximize revenue, ROI, profit, or other key marketing metrics.

The Solution

BudgetOpt helps the marketer allocate budget in the most efficient manner possible, given the business objectives, historical and forecasted data, and business rules and constraints. Budget allocations are recommended along any dimension of interest:

• Customer segments and/or subsegments
• Products
• Campaigns
• Time
• Media/Channels
• Frequency

The solution uses sophisticated mathematical optimization models developed directly from user inputs. You do not need to have a Ph.D. in Mathematics, you simply need to know your data, objectives, and business constraints. The solutions takes care of the rest.

What-if?

One of the most time-consuming aspects of marketing and budget planning is sorting through the never-ending number of possible business scenarios under which we may operate the unknown future. For example:

• What will be the effect of declining response rates?
• If budget is slashed by 10%, how should we re-allocate?
• How will the cost of a glossy postcard effect next month's results?
• Will this customer segment outperform that one?

Lityx BudgetOpt is designed to let the user define any number of what-if scenarios based on unknown outcomes, and compare and contrast results. Should we shift budget from Campaign A to Campaign B? BudgetOpt will handle the science so you can focus on campaign design and execution.

Results

Results can be viewed graphically, or downloaded in tabular format. Output includes detailed recommendations for optimal budget allocations, prioritized strategies across all business dimensions, and detailed comparisons of any what-if scenarios defined. Focus is on key business metrics like profitability, ROI, revenue, or incremental customers.