Marketing attribution is identifying specific actions someone took to discover your brand or buy your service. This is how marketers evaluate the value of various channels or events which lead to a conversion.
Marketing attribution models have evolved over the years as customer needs have changed and businesses have gone through digital conversions.
It is no surprise that today, the digital world has nuances. Attribution models must be adapted to these nuances. It’s possible that what worked 30 years ago is no longer effective, but they still need to be more useful.
Continue reading to learn about the history of marketing attribution and the different models used today. You will also discover where this trend may be headed.
Offline Marketing and Attribution
The origins of marketing mix models can be traced back to the 1950s. This marketing approach was popular in the 1980s because it covered all media types and included cross-channel coverage.
MMMs proved to be a valuable tool due in part to the absence of alternatives. These older attributions models need to be updated in today’s digital world. Marketers who rely on these models should take advantage of valuable insights and information.
MMMs work too slowly for online campaigns and often provide results several weeks after the campaign. The MMM model could be a better way to measure brand equity. This can lead to overspending resources on lower funnel activities and underspending resources for brand development. The MMM model is ineffective because of these flaws, particularly for organizations that have not yet made the digital transition.
The transition to the digital age and Omnichannel Marketing have provided marketers with new tools and techniques, allowing them to revitalize marketing attribution models. This will enable them to track every step of the customer journey. There are a few occasions when a customer will type in their web address and purchase something. This is why different attribution models have been developed to ensure the success of multi-channel marketing.
Different Digital Attribution Models
You can choose from various marketing attribution models depending on your business goals, business model, and resources. You can choose from several options, including:
Single Source Attribution
The single source marketing attribution gives credit to a particular touchpoint. This is usually the first or last touch. First touch attribution gives all the credit to the first channel that your lead interacted with. This could be a PPC ad or an Instagram carousel.
It is simple to implement but needs to consider any subsequent interactions that the customer has with your company. This will change the value of other channels. The last touch attribution is easy to track and gives credit for the final touchpoint before the sale. However, this has the same problems as the first touch attribution because it does not recognize other channels.
Multisource Attribution
Multisource or multitouch attribution gives credit to each channel contributing to the final sale. The method provides a more comprehensive view of the sale process but does not account for each channel’s contribution to the final sales. Multisource attribution is an example of a PPC ad leading to a landing site, an email form for a free eBook, a webinar, and the final sale.
You can use six multi-source attribution models in your digital marketing. These include:
Linear This is the simplest model and gives equal credit to each campaign touchpoint.
Time Delay This model accounts for longer sales cycles, and it gives credit to the touchpoints that occurred later. It will usually discount earlier activities, as they likely impacted the end result less.
U-shaped This type of multisource attribution will credit two specific touchpoints, the first touchpoint and the lead creation. You typically give 40% credit to the lead generation, 40% to the first contact, and 20% to all the other touchpoints.
W-shaped This model is similar to the U-shaped model, but it includes an additional touchpoint: opportunity creation. In the W-shaped models, each touch receives 30% credit while the rest get 10%.
Full path — The full-path model builds on the W-shaped design and includes the final close. The significant touchpoints in the customer journey are given the most credit, while the more minor touches get less weight. This model has the advantage that sales interactions are credited with the exact weighting as marketing efforts in the beginning stages.
Custom is the most sophisticated model of multisource attribution. The marketing team can determine the credit and value given to each touchpoint depending on the marketing channels used, buyer behavior, and industry.
Multisource Weighted Attribution – A weighted multisource attribution allows you to recognize all interactions throughout the entire sales cycle and give specific weighting to the touchpoints with the most significant impact. This model provides you the most accurate picture of the customer journey. It will show which areas work and which need improvement. However, it isn’t easy to implement.
How to choose a marketing attribution model
marketing departments can have a heated debate over which marketing attribution models to use. The success of a model is dependent on many factors, including the size, budget, and values of your company. It also depends on what tools you use and where you are with digital transformation.
Consider your time to sell: If it is shorter, you should use single-touch models. If your time-to-sale is long, consider a time-decay model.
A second consideration is the RRP of a product or service: If it’s cheaper than other brands (especially retail), it will have a higher proportion of “single session sales,” where users make purchases in their first session. Multi-touch is more important for higher RRP items, such as a house, car, or premium course.
Testing and trial and error can be a great way to decide on the marketing attribution model. You can compare and contrast and give credit where you should for the best outcome. Remember that the budget will go to those channels with the highest perceived value. It makes sense to get this right.
In larger organizations, the choice of the best model could require participation from marketing, IT and finance. This means that marketing and sales must work together to maximize each campaign. CRM will become more important as the marketing touchpoints with existing contacts are measured.
How to Attribute Success
There is no formula or easy way to choose the best marketing attribution model for you. You can improve your chances by taking steps in advance to make the right decision. Here are some guidelines to follow:
Create a Customer journey road map
You will be able to better plan your campaign when you have an idea of the touchpoints, channels, and interactions. You can track the data of each step using analytics. This will help you to determine which steps are most valuable.
Focus on Lead Quality
Lead quality should be considered when planning your roadmap and future campaigns. You can choose an effective attribution model if you consider the lifetime value of each customer and not only the initial sale. Don’t forget your goals and objectives as you progress.
The Word Change is Not a Negative Word
The ability to make changes based on data is a key part of online marketing success. Digital marketing is all about testing, which is essential to success. As the business evolves, your model should also change. All departments must be involved for the betterment of the company.
