To attract customers’ attention and loyalty in today’s highly mobile and competitive marketplace, marketing professionals need to carry out their campaigns using multiple channels. Although this strategy is quite effective in customizing the customer journey, increasing customer engagements, leads, and sales, it’s often difficult to determine the impact of a particular campaign on marketing return on investment or ROI. To make the right campaign optimization, marketers need to use campaign attribution to determine how a particular touchpoint or a combination of touch points influences a customer’s decision.
Simply put, marketing campaign attribution is the practice of identifying and assigning the right value to the touchpoints a consumer encounters on their path to becoming a customer. The path to getting customers is becoming more complex in today’s digitized marketplace, with a web of interactions occurring across different channels before conversion. It’s increasingly important for marketers to understand which channel has the greatest influence on the customer’s decision to purchase or take the desired step.
For instance, if you sell baby clothes, you can promote your brand by using different platforms like Google display ads, Facebook, and other social media apps. Over time, you may discover that your customer conversion rate is increasing, and you’re getting more revenue, meaning your campaign is working. Still, it’s hard to pinpoint which channel to focus more money and time;it’s hard to decide if Facebook has more influence on your customers’ decision to purchase or if the credit should be given to Google ads.
Marketing attribution answers these questions. It provides the marketer with relevant information about how, where, and when the consumer interacts with the marketing message, making it easier for campaigns to be structured to meet consumers’ desires.
Benefits Of Marketing Attribution
There’s a story behind every sale. For marketers to succeed in their campaigns, it’s essential to understand this story. Thus, they need to aggregate data from different channels to properly weigh each interaction the consumer had with the brand. This strategy will help determine which channel played a more significant role in convincing the consumer to make a purchase so that the brand could focus more time and resources on their most effective channel.
Some benefits of marketing attribution include:
• Helps In Budget Optimization: Marketing attribution takes out any guesswork in budget allocation by revealing the channels that earn the most engagements and play a more prominent role in driving sales. It enables the marketing team to adjust its budget, so money isn’t wasted on unproductive touch points.
• Increases ROI: When marketers use the right marketing attribution model, they can tailor their campaign message to suit the customer’s desires. It also helps reach the right customers at the right time, leading to increased sales and higher ROI.
• Improves Product Development: When marketers understand what consumers desire, the information helps them improve their products to satisfy their consumer’s wants.
• Understanding Customer Journeys: Market Attribution helps marketers understand their customer’s journey by showing all touchpoints that lead to a consumer’s decision to purchase.
Examples of Marketing Attribution Models
There are different types of marketing attribution models. They are: Single-Touch Attribution Model This model assigns credit for a conversion to just a single touchpoint, which is divided into two:
This sub-model gives 100% credit for a conversion to the first touchpoints a visitor encounters in their journey. For example, a customer considers registering for an online training after reading about it on a pay-per-click (PPC) ad, then sends an inquiry about the training through the ad’s email. Afterward,they’ll also make a Facebook inquiry before finalizing payment. The first-touch attribution model gives all the credit to the PPC ad without considering the email marketing performance.Although this model is very easy to set up and track, it undermines the impact of other campaigns after the first touch, and this isn’t good for marketers trying to optimize the value of their efforts.
This sub-modelis the most popular model used by most businesses to monitor conversions. It assigns all the credit for a conversion to the final touchpoint a consumer encounters, ignoring the ones made leading to conversion. It’s useful for focused campaigns.
Linear Attribution Model :
In this model, the credit for the conversion is equally divide between each touchpoint. If there are five touchpoints before a conversion, each touchpoint is given equal credit. This is somewhat better than the first and last touchpoints because it recognizes every step of the journey. However, it may not be entirely accurate because all touchpoints have varying effects on the consumer.
Decay Attribution :
Touchpoints closer to the point of conversion gets more credit in this model. Time decay attribution is a multi-touch model that weighs every touchpoint in the consumer journey, focusing more on the ones that lead to a conversion. Its drawback is that earlier touchpoints may be just as influential, but marketers may not be able to optimize their campaigns effectively since those are ignored.
U-shaped Attribution Model :
This model gives equal credit to the first and last touch while giving a lesser percentage of credit to touchpoints between the first and last. The first and last touches get 40% each while those inbetween share the remaining 20% equally. The drawback of this model is that the in-between touches may be just as important as the first or last touchpoints.
It’s vital to use marketing attribution if marketers want to successfully optimize their campaigns and ensure that time and resources are channel toward the right touch points. While there are different channels to explore, it’s imperative to consider the pros and cons of each attribution model before choosing one. Following the tips on this guide can help make the best marketing campaign attribution choice for your business.