What is Marketing Attribution?
Understanding your customers’ journey: how, where, and why they interact with your brand.
What is attribution?
Marketing attribution aims to understand what has happened to a potential customer before they reach a particular target outcome: whether it be buying a product or signing up to a newsletter. Before they reach that stage, they’ve already had several interactions with your brand. This could be seeing a piece of advertising, clicking on a webpage or having a conversation with a call centre. Attribution allows a business to understand which interactions have influenced conversion, and therefore give an appropriate value to each of them.
Understanding what really happens to a customer before they convert to your business is key to working out where to allocate marketing spend. By figuring out which exact channels have contributed to a customer’s decision to purchase, you can more effectively prioritise where to focus your efforts and ace your performance marketing strategy.
Why can Single-click attribution be misleading?
Single-click models will attribute a single touchpoint in the customer journey with 100% of the conversion credit (these are most commonly the first and last touchpoint).
This, unsurprisingly, often fails to provide marketers with an accurate picture of what’s going on. If a customer were to click on an email link from your brand and then purchase one of your products, a basic single-click attribution model would present this as the sole reason for them becoming a customer. Little do you know, the customer was interested in buying your product two days prior, when they found your blog post through Google Search and connected with your CEO on LinkedIn.
Overall, relying on Single-click attribution models will hinder you in your path to unlocking hidden value across your channels.
Why could Data-driven multi-touch attribution be a better alternative?
If you want to measure channel performance in a precise and efficient way, it’s critical that you assess every touchpoint in a customer’s journey. But the question is: how do you know which channels are the most valuable, and how much credit to give to each of them?
Data-driven attribution precisely breaks down the role that each touchpoint has played in a customer journey and subsequently work out which has played the biggest role. It informs you of each interaction the customer has had with your brand and gives you an overall picture of the customer’s decision-making process.
Here’s an example of mutli-touch attribution (MTA) in action:
This simulated customer journey demonstrates that, in this instance, a marketer relying solely on last-click attribution would assume that Google had played the major role in this conversion. However, as shown above, it was in fact Facebook and Paid Search that were the main contributors. MTA unlocks the hidden value in each of your channels, ultimately giving the ability to make more effective decisions.
Another great benefit of MTA is that it not only allows you to visualise customer journeys of those who did convert, but also of those who didn’t. This insight is key to understanding where visitors lose interest, and which areas of your strategy need strengthening. It’s important to understand which parts of your marketing strategy do work, but it’s just as important to understand which don’t.
Attribution, if done well, is essential to building a highly effective marketing strategy. By understanding more about your customers’ interaction with different channels, you can work out which to prioritise, and plan future campaigns more effectively. By incorporating all available customer data, data-driven attribution helps you truly understand how customers interact with your brand and gives you the power the maximise your conversions.
Further Reading: https://www.referralsaasquatch.com/marketing-attribution/
Fospha provides its clients with an accessible, centralised, and actionable data platform. Our solution can seamlessly integrate disparate performance data siloes and present clients with a comprehensive – and most importantly – accurate picture of their marketing performance. By combining MTA with an extensive list of different datasets, Fospha provides a single interface where clients can understand how buyers are interacting with their brand, understand where they’re getting the best return on investment, and optimise their marketing strategy accordingly.
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