If your business is not using attribution models, now is the time to start. Attribution models are an essential component of marketing analytics, yet a considerable number of businesses overlook them or use them sparingly.
Recognize the power of attribution models as detailed below and you’ll have invaluable information at your fingertips. Take the extra step of comparing models over time and you’ll glean invaluable insights that help your business maximize connections and resulting sales.
Attribution is the Foundation of Marketing
Marketing attribution is often underrated and overlooked, especially by those who do not work in advertising. Attribution recently emerged as an industry buzzword yet it is at the foundation of all successful digital marketing. Marketing attribution traces user activity back to the point of origin. Connecting the dots between creating awareness of the value offering to converting highlights exactly how sales occur.
In some instances, customer touchpoints with brands extend to several channels and devices. The question is whether your business is willing to invest the time and effort necessary to fully understand the customer journey, even if that journey spans half a dozen or more steps and platforms. Make proper use of attribution models and you’ll have a clear understanding of how customers progress to the all-important conversion point.
Retrace Customer Steps to Conversion
It is best to think of marketing attribution models as a retracing of the customer’s pathway from prospect to buyer. The attribution model serves as the compass of marketing, helping businesses and advertisers navigate with efficiency. Employ several models and you’ll find they illuminate the customer journey, showing the different paths to conversion and the frequency at which those paths are taken.
Modeling provides the data and insight necessary to optimize marketing resources and leverage platforms for optimal results. Make decisions based on actual model data and you’ll connect with new customers in a highly precise and efficient manner.
Insight Through Data-Driven Modeling
Take a look at the available marketing attribution models and you’ll find more than anticipated. The data-driven attribution approach is revered for being rooted in figures and facts as opposed to assumptions. As an example, it is illogical to assume that the initial point of contact with the brand, sometimes referred to as the “first click”, is more important than ensuing points of contact.
Alternatively, it is also illogical to assume the last point of contact with the brand or “last click” is the most important factor in convincing a potential customer to convert. Instead of making such assumptions, more businesses are leaning toward data attribution models. Attribution models driven by data empower businesses to set goals and weigh specific channels in accordance with efficacy toward the expressed aims.
Instead of living on the edges of the actual truth as sometimes occurs with single factor models, a data-driven approach relies on algorithms along with specialized weighting for highly precise channel analysis. However, alternative marketing attribution models also have merit, especially when used in unison with the data-driven model.
Select the Right Attribution Models for Your Business
Now that we’ve defined attribution models and some of their merits, let’s shift the focus to selecting one or several models for your business. The ideal analytics attribution model for one company’s campaign is not guaranteed to be as effective for the next business’s campaign and so on. Do your due diligence and you’ll find upwards of eight or more unique marketing attribution models used for analytical purposes.
Each distinct model has its respective pros and cons. Most businesses choose an attribution model based on the unique end goals of their marketing campaigns. Some businesses are partial to the model that provides the best measurement of marketing channel efficacy. Recognize that there are specific situations in which certain models will work better than others, use each for its respective purposes and you’ll get a sense of which is best suited for specific marketing campaigns.
Though testing each unique attribution method for at least a couple financial quarters will chew up some time, it is worth it. Give each model its fair chance, analyze the ensuring data for insights and use them accordingly.
Compare Attribution Models
Run an attribution model comparison report and you’ll have a better comprehension of attribution model efficacy. This is your opportunity to compare the weaknesses and strengths of each unique model. Comparisons provide the data necessary to analyze conversions and identify recurring themes.
Ongoing model comparisons are also valuable in that they provide the information necessary to assign credit with accuracy. Model comparisons ultimately set the stage for your business manager and marketers to improve customer outreach through a multitude of channels, diversifying outreach for optimal efficiency.
