In this articles we'll explain the requirements to the date and time formats in the data set for MMM.
To create an accurate and reliable Marketing Mix Model (MMM) with Morpheus, the first requirement is a high-quality dataset. Ideally, this dataset should include over a year of historical sales and marketing data. While it is possible to build a model with less data, the results will likely be less precise and informative.
It's important that your data should be split by weeks, here’s why:
- Balanced Granularity: Weekly data shows significant variations without the excessive noise that is present in daily data.
- Campaign Cycles: Marketing activities often follow weekly schedules, so aligning data with these cycles improves the analysis.
- Data Consistency: Weekly intervals have enough consistent and comparable data collection across periods.
- Smoothing Outliers: Collecting the data weekly reduces the impact of daily outliers, showing real trends.
- Model Efficiency: Weekly data reduces complexity and computational difficulties, leading to faster and more reliable models.
- Business Alignment: Weekly data aligns better with business operations and decision-making cycles that are often done on a weekly basis.
Using weekly data provides a practical balance between detail and manageability, resulting in more accurate and actionable insights.
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