Adobe Data-Driven Operating Model (DDOM) Simulation
REPORT
Submitted to:
Xavier Institute of Management and Entrepreneurship, Bangalore
in partial fulfilment of the requirements for the award of the degree of
Post Graduate Diploma of Management, (2024-2026)
By:
AMAN BEHRA (30019)
AMAN KUMAR SINHA (30020)
AMJAD HAKIM (30021)
AMRUTH MENTA (30022)
ANAND VARDHAN OJHA (30023)
ANANYA NAMBIAR (30024)
Under the guidance of
Prof. JOY VARGHESE
XIME, Bangalore.
Hypothesis and Rationale behind budget allocation decisions in The Adobe Data-Driven
Operating Model (DDOM) Simulation
Q1 2021
Hypothesis:
To kick off the year, investing heavily in Awareness Marketing (Discover) and Performance Marketing
(Buy) will increase top-of-funnel traffic and lead to higher immediate orders. Moderate focus on
Engagement Marketing (Use) and Save Offers (Renew) will help boost usage and maintain retention.
Rationale:
This quarter sets the tone for the year. A strong push on awareness builds traffic momentum, while
performance marketing directly impacts orders and Gross New ARR. We are reusing the proven Q4 2020
allocation as a benchmark to maintain stability while preparing for future optimizations based on results.
Q2 2021
Hypothesis:
Doubling Landing Page Optimization and Recommendation Engine fixed investments will improve
conversion from visitors to trialists, and trialists to buyers in subsequent quarters.
Rationale:
Q1 performance highlighted a bottleneck in the visitor-to-trialist funnel. By boosting fixed investments
here, we expect improved conversion efficiency in Q3. This is a strategic investment that will pay off with
a lag, so early execution is crucial.
Q3 2021
Hypothesis:
Shifting more variable budget to Try (Consideration Marketing) and Buy (Performance Marketing) will
accelerate mid-funnel conversions and push towards Net-New ARR goals for the second half.
Rationale:
With conversion rates primed from Q2's fixed investments, it's time to push more traffic through the trial
and purchase funnel. This shift is designed to convert the increased volume of qualified traffic into
trialists and paying customers, thereby boosting immediate ARR.
Q4 2021
Hypothesis:
A higher allocation to Renew (Save Offers) and Product Engagement (Use) will maximize retention and
reduce churn ahead of the new year, ensuring a strong customer base for 2022.
Rationale:
Q4 is key for hitting retention KPIs and reducing Cancel ARR. Investments in save offers and onboarding
support will improve loyalty. We also reinforced Fixed Payments and Currency Optimization to support
smoother renewals, addressing one of the causes of churn.
Q1 2022
Hypothesis:
To start strong in a resource-constrained year, double down on Performance Marketing (Buy) and
Consideration Marketing (Try) to drive immediate Gross New ARR and trial growth, while sustaining key
Fixed Investments to leverage long-term conversion gains.
Rationale:
With a 25% Net-New ARR growth target but only 20% more budget, efficiency is critical. We leaned into
proven ROI channels while protecting foundational fixed investments (e.g., Recommendation Engine,
eCommerce Optimization) to ensure future conversions remain strong.
Q2 2022
Hypothesis:
Slightly reduce top-funnel Awareness Marketing (Discover) and shift budget to Use (Engagement
Marketing) and Renew (Save Offers) to optimize downstream metrics and prepare a strong user base for
Q3–Q4.
Rationale:
After two strong acquisition-focused quarters, retention becomes more important. Engagement drives
monthly active usage, which correlates with renewals. Save Offers also counteract churn risk —
especially from Q1’s new cohort approaching renewal.
Q3 2022
Hypothesis:
Maintain aggressive Buy (Performance Marketing) to close Q3 strong while reallocating more budget
toward Product Engagement and Fixed Payment Optimization to raise retention and usage before year-
end.
Rationale:
This quarter is the last to influence Q4 renewals via fixed investments. Improving onboarding and
payment systems now ensures higher retention later. The balance also maintains acquisition momentum
without compromising long-term health metrics.
Q4 2022
Hypothesis:
Prioritize Renewal KPIs by increasing Save Offers, Fixed Payments, and Engagement Marketing, while
slightly dialing back on new acquisition to protect ROI and hit final exit metrics.
Rationale:
Retention is the single biggest driver of Net-New ARR this late in the year. Boosting save strategies and
ensuring frictionless renewals will protect ARR gains. Reaching the end goals (>135M visitors, >12.7M
trialists, >70% retention) depends on customer success, not just acquisition.
