Today, one of the biggest challenges marketers are facing in the industry is how to organize proper attribution modeling. Along the customer journey, it is expedient to properly distribute credit to all the touchpoints else you end up flying blind. The customer journey, as it seems, has now become longer with lots of different touchpoints. It has been greatly influenced by the world of digital marketing. Unfortunately, many of the legacy marketing attribution models are not capable of leading the trend as they are so ill equipped.
Identifying those campaigns that are responsible for driving the most ROI is a critical part of marketing that mustn’t be overlooked. As a matter of fact, advertisers can rarely plan for future growth if they do not possess this data because without it, allocating resources to acquire new customers is hardly feasible. To this end, it is important to know the best campaign for your attribution else you end up giving credit to un-deserved areas and sell other higher performing channels.
When it comes to attribution modeling, it is imperative to know when and how to apply the good model to achieve meaningful results. There are too many uncontrollable paths that customers can take. Unfortunately, it isn’t possible to follow people down any of these paths since they are organic, PPC, social, and direct.
What is an attribution model?
An attribution model refers to the process of determining which marketing channels get credit for conversions. These are basically a set of given rules. Unfortunately, there are quite a good number of businesses that are yet to commit themselves to marketing attribution modeling. Interestingly, everyone using the internet to market goods and services is performing marketing attribution modeling even those who think they don’t. Basically, they are applying a last-click attribution model which can be quite a problem.
There are many different attribution models available and the last-click attribution is just one of them. These attribution models available present a different perspective as to how a marketer’s system is performing. All models are effective as there is none, in particular, that is unproductive. However, it is important to know that there is no single model that will present a full description of your marketing performance thereby neither making them correct or incorrect. Ultimately, it is your responsibility to understand when, how, and where you should be using each model.
Why attribution modeling is important
As you already know, quite a good number of organizations are not making use of attribution models. The importance of using attribution modeling cannot be overemphasized and any marketer who is not employing this system is obviously missing out on getting leads. Here are some helpful ways marketers can benefit from attribution modeling:
– Multi-channel attribution: Any marketer who is not applying a multi-channel attribution model is failing to realize the intended role of some of these marketing channels on road to a conversion. By default, you are employing a Last-Click Attribution model for failing to actively make use of a multi-channel attribution model. This implies that all the credit garnered from your conversions will be apportioned to the final channel utilized by a customer to navigate to your website before conversion. And all the other marketing channels that contributed to converting your customer will be ignored by default. While your top funnel marketing channels may not be getting their due credit, your bottom funnel marketing channels may be getting more credit than required which could result in driving up your cost per conversion, the allocation of budgets based on inaccurate information and inaccurate interpretation of the operation of your multi-channel marketing efforts.
– Cross-device attribution: While on the journey to conversion, there is every possibility for a customer to make use of multiple devices. This can also contribute to a multi-channel attribution problem faced by most marketers. Unlike simple multi-channel attribution, this scenario is a lot more difficult to tackle. Actually, your full stack digital efforts will require the help of enterprise software systems to effectively solve this problem, as Google Analytics alone cannot do much.
Now that you have known the problems or challenges facing marketers, it is also important to consider the main attribution models and how they can help in resolving common attribution or conversion problems.