Business Insights
Extracting Business Value
Decomposition analysis transforms statistical output into actionable business insights. This page shows how to translate contribution charts into strategic and tactical decisions.
Purpose: Convert decomposition results into business insights that drive decisions and improve marketing performance.
Strategic Insights
What's Driving Your Business?
Key Questions:
Which factors contribute most to KPI?
Is it marketing-driven or baseline-driven?
How much control do you have over performance?
From Decomposition:
Base-Driven Business:
Base: 60% of KPI
Marketing: 25%
Seasonality: 15%Insight: Strong organic demand, marketing provides incremental lift
Marketing-Driven Business:
Insight: Marketing is primary growth driver, need consistent investment
Growth Attribution
Identify Growth Sources:
Year-over-Year Comparison:
Insight: Marketing drives half of growth, indicating effective campaigns
Marketing Contribution to Business
Calculate Marketing's Impact:
Strategic Implications:
Justify marketing budget
Demonstrate value to leadership
Guide investment levels
Portfolio-Level Insights
Channel Mix Analysis
Current vs. Optimal Mix:
Current Allocation:
Insight: Digital is under-invested relative to its contribution
Recommendation: Shift 10-15% of budget from TV to Digital
Efficiency Analysis
Contribution per Dollar:
Insights:
Digital is 2x more efficient than other channels
TV and Radio have similar efficiency
Significant reallocation opportunity
Diversification Assessment
Risk Analysis:
Concentrated:
Diversified:
Strategic Decision: Balance efficiency vs. diversification
Tactical Insights
Campaign Performance
Identify Successful Campaigns:
From Contribution Spikes:
Insight: Campaign created significant incremental lift
Validation:
Does timing match known campaigns?
Is lift proportional to investment?
How long did effect last (adstock)?
Timing Optimization
When Marketing Works Best:
Seasonal Analysis:
Insight: Q2 is most efficient period for marketing investment
Application: Shift budget to Q2 for better returns
Budget Allocation
Optimal Distribution:
Based on Contribution Analysis:
Expected Impact: +$200K in incremental KPI
Operational Insights
Resource Prioritization
Where to Focus Team Efforts:
High Impact, High Control:
Digital optimization (largest opportunity)
Campaign timing (easy to adjust)
High Impact, Low Control:
Seasonality (prepare, can't change)
Competitor activity (monitor, react)
Low Impact:
Minor channels (maintain or cut)
Test opportunities (small scale)
Performance Benchmarking
Compare to Expectations:
Insights:
TV and Digital outperforming
Radio underperforming - investigate why
Adjust expectations or strategy
Trend Identification
Growing vs. Declining:
6-Month Trend Analysis:
Strategic Response: Double down on Digital, reconsider Radio
Insight Development Framework
Step 1: Observe Patterns
What stands out in the decomposition?
Largest contributors?
Unexpected results?
Step 2: Ask Why
Business explanation for patterns?
Align with known activities?
External factors at play?
Step 3: Quantify Impact
How much contribution?
What's the ROI?
How does it compare?
Step 4: Identify Opportunities
What can be optimized?
What should change?
What to test?
Step 5: Make Recommendations
Specific actions
Quantified expected impact
Implementation plan
Common Business Questions Answered
"Is our marketing working?" → Compare marketing contribution to spend, calculate ROI
"Which channels should we invest more in?" → Rank by ROI and contribution, identify high performers
"Where are we wasting money?" → Find low/negative ROI channels, underperformers
"How much should we spend on marketing?" → Analyze diminishing returns, optimal spend levels
"What drives our seasonal patterns?" → Decompose seasonality contribution, identify drivers
"Why did sales drop last month?" → Compare contributions month-over-month, find changes
Storytelling with Decomposition
Build Narrative:
Set Context: "Our KPI grew 20% this year..."
Show Drivers: "Marketing drove 50% of that growth..."
Highlight Winners: "Digital was our top performer with 3x ROI..."
Identify Opportunities: "We can add $200K by reallocating from TV to Digital..."
Call to Action: "Recommend shifting 15% of budget starting Q3..."
Use Visuals:
Decomposition charts
ROI comparisons
Trend lines
Before/after scenarios
Communicating to Stakeholders
For Executives:
Focus on total business impact
ROI and efficiency metrics
Strategic implications
Budget recommendations
For Marketing Leadership:
Channel-level performance
Campaign effectiveness
Mix optimization
Tactical adjustments
For Channel Teams:
Specific channel contributions
Performance vs. benchmarks
Optimization opportunities
Detailed recommendations
Action Planning
From Insights to Actions:
Prioritize by Impact:
High impact, easy to implement (do first)
High impact, hard to implement (plan carefully)
Low impact, easy (quick wins)
Low impact, hard (deprioritize)
Example Action Plan:
Track Results:
Monitor post-implementation
Measure actual vs. expected impact
Iterate and refine
Summary
Key Takeaways:
Decomposition Tells You:
What's working and what's not
Where value is created
How to optimize
Good Insights Are:
Specific and actionable
Quantified (dollars, percentages)
Connected to business strategy
Validated by business knowledge
Next Steps:
Extract specific insights from your decomposition
Validate with stakeholders
Develop action plans
Implement and monitor
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