A Model for Tackling Attribution
Marketing teams engaged in multi-channel marketing efforts have a challenge to overcome when it comes to attribution of ROI. Efforts to prioritize and optimize the marketing mix can hit a wall when influence doesn’t reflect in tracking. Consumers may see multiple ads or visit different websites before making a final purchase decision – a decision that may not have occurred without those other various touchpoints.
With so many avenues and routes a customer can take to land in the buying stage, it is impossible to know which direction they came from. Which is why we recommend adopting a model to assist with attribution. The model can help analyze the journey and inform ROI for the overall marketing effort. It can also give some credit to touchpoints that, while they didn’t trigger the final purchase decision, may have played a role in the consideration and decision-making process.
There are a couple of different models used to determine attribution. The first type of model is called a single source attribution model. With the single source attribution model, all of the credit for the sale is given to one marketing effort – typically either the first or the last in the customer’s journey. This model doesn’t take into account the variety of different interactions the buyer may have had, but it does serve as a good starting place for attributing ROI and identifying the strongest efforts.
Another type of attribution model is called the multi-source attribution model. This type of model accounts for all of the potential touchpoints available in the customer journey. While more complex, this model does a better job of assigning some credit to the impactful tactics. There are many different ways to approach multi-source attribution, and the one you choose to utilize should match your ability to track and weigh impact from a variety of touchpoints.
In a world where customer journey has become a focus, attribution of marketing efforts helps to see exactly where customers are heading. Knowing the ROI of certain tactics can help you build smarter marketing campaigns, strategically placing marketing spend. It also helps to see when trends change, and be able to adjust when tactics begin to see fatigue.
If you would like to discuss attribution of your marketing efforts, or utilize a marketing attribution model, contact us at B2E. We’d love to be a resource for you on marketing attribution efforts.