Consumers are no longer all discoverable in one place. We now have a fragmented market because the average customer uses no less than ten different channels to communicate with a company. As a business, you should always look for ways to boost your marketing strategy in order to:
Recently, more businesses have started using attribution, which we will discuss in this guide.
Marketing attribution defines the ways that marketers determine ROI or value with specific channels. Attribution looks at how new customers heard of your brand. One may have clicked on an ad, and another may have found your website through a social media post.
As we mentioned above, the average customer can use up to ten channels when communicating with a company. Various messages and multiple channels can be at the root of a customer’s purchase. Which channel results in the most sales? This is what we’re trying to determine with marketing attribution.
In a perfect world, we would have the opportunity to interview each customer after they make a purchase. We would ask how they first heard of the brand and which channels were most influential when making their decision. Since this is an impossible goal, we need to discover the best touchpoints ourselves; there are a variety of attribution models that can assist.
Over time, various models have been introduced in this field. They can be broken down as follows:
As the name suggests, the idea with this model is to assign credit to one single source. There are two main types of single-source marketing attribution:
Sometimes shortened to MTA, a multi-touch attribution model gives credit to several contributing channels. MTA accounts will follow the whole customer journey, which means that every touchpoint gets recognized. This could include a social media post, ads and/or newsletters. While some models allot credit based on impact, others will give credit equally. Even if someone ignored a newsletter and made a decision based on an ad, both touchpoints receive equal credit.
Different types of multi-source marketing attribution include:
Weighted multi-source attribution models try to determine which interactions in the sales cycle did the most heavy lifting. This model is one of the best options because you can pinpoint the touchpoints with the biggest impact on sales.
With so many options, you might be wondering which attribution model is best for your business. In the time ahead, you can do some trial and error to see which provides the most value.
Remember, the touchpoints that get credit will normally receive a larger slice of the marketing budget to keep performance high. If you aren’t comfortable risking this on one touchpoint, perhaps you would be better off with a multi-source attribution model.
Why should you use attribution modeling in the first place? Here are some of the main benefits.
Firstly, attribution allows businesses to learn more about their customers and the journey they go through before purchasing a product. Over time, you’ll get insights into campaign performance and be able to make more accurate decisions regarding channels. By calculating ROI, you’ll know where to spend your budget.
With more information, you can find solutions to the problems that your business and your customers face.
We mustn’t forget, attribution models encourage businesses to learn the most valuable touchpoints. While one touchpoint will be at the forefront with lots of engagement, others will hardly gain attention at all. Learning the touchpoints with the most engagement can inform audience targeting and buyer personas.
We’ve seen models that determine the CLV influence of each touchpoint—in other words, how likely a touchpoint is to generate a long-term customer as opposed to just a single sale. With this information, you know where to spend with retention and acquisition programs.
Finally, all this information will enable you to optimize each element of your strategy so it is effective at every stage.
Attribution can boost your marketing strategy, but only if you choose the right model and pay attention to the results. Multi-channel strategy is a major key to marketing success. We hope you will consider implementing it after reading this guide!
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