We’re in a difficult time for virtually every company, and it’s never been more critical to assess the impact of every dollar spent. Marketers can use attribution modeling to figure out how much credit each marketing channel and customer touchpoint should get for a given conversion. This technique allows marketers to fine-tune their programs over time to focus on the channels and touchpoints that deliver the most value.
You must first choose which of the models will work best for your company in order to achieve value through attribution. There is no such thing as a universal attribution model, and the one that works best for you will be determined by your customers’ individual buying habits as well as your objectives.
What is a marketing attribution model, and how does it work?
Attribution modeling in marketing requires statistical research at the user level to ascribe value to marketing activities. This is in contrast to models that employ aggregate data, such as marketing mix modeling. Because of this person-centric approach, attribution models are more commonly used in digital efforts than in offline initiatives like print advertising. Each attribution model is based on a different set of analytical methods, which we’ll talk about in more detail in the next part.
The most useful attribution models will reveal information about:
- Which communications were delivered to a customer and through which channels?
- Which touchpoint had the greatest influence on their buying decision?
- The significance of brand perception in conversion decision-making
- The significance of the message sequence
- Which messages get the best responses from each customer?
- External variables have an impact.
Choosing the Most Effective Attribution Model for Your Company
When deciding which attribution model to use at their company, marketers must take numerous factors into account. Consider the type of sales cycle you employ, how long it normally lasts, and how much you sell services online versus offline. E-commerce companies may not have to account for conversions that happen offline, but most big retailers do.
It’s also crucial to think about how much of your marketing budget is spent on offline channels like print, radio, and television. For the most accurate information available, organizations that place a high value on various media will need to adopt an attribution model and platform that can correlate and normalize online and offline efforts together. Multi-touch attribution, for example, is frequently attributed as being more effective for digital mediums, whereas marketing mix modeling provides more insight into offline initiatives. The visibility of both of these metrics is improved by combining them.
In the end, your company will almost certainly need to combine different attribution models to get a complete picture of the impact of your efforts.
Software and Tools for Marketing Attribution
If you want the best results from your online and offline marketing campaigns, you’ll need a mix of models and data from each one to figure out which changes to make.
This will necessitate the use of a powerful analytics platform, but many marketers have previously been disappointed by these systems. Software to automate tasks would be a great help for marketers at this time. Also, a good marketing platform that can give in-campaign advice on how to change your online and offline marketing will help you stay ahead of the game.
Attribution modeling allows you to zero in on the buyer’s journey and figure out which aspects are performing best for your customers and which ones need to be tweaked. It also tells you how your marketing channels and touchpoints work together to get people to buy from you.
Determine which models will give you the information you need, select the best tool for the job, and begin attribution modeling.