Attribution Modelling Mastery: Understanding Marketing Impact on Revenue
The customer journey is not linear. There are many ways for customers to discover your brand, engage with it, and move further down the sales funnel and they all have different journeys.?
As a marketer running multiple campaigns on multiple platforms, it can be difficult to determine which mix of marketing levers are generating leads that move efficiently through the sales funnel and down the conversion path. It is also difficult, sometimes, to determine if a lead is sales or marketing generated.
That’s when attribution modelling comes to rescue.?
Attribution modelling is a strategy that allows marketers to analyse and assign credit to marketing touch points that occur at the specific steps of the customer journey, from searching for a product online to making a purchase, and every action in between.
Choosing an Attribution model:
There’s a large variety of attribution models out there ( and a variety of opinions about them!) but they are generally split into two main varieties: single-touch and multi-touch.
Single- Touch Models
The 3 main types of Single-touch Models are first touch, last touch and Lead-conversion or Tipping Point. The advantage of using these models is that they are simple and easy to understand/implement. The First-touch model,? As the name suggests, assumes the first touchpoint plays the most critical role in driving the customer to take action. First-touch can be useful for businesses that rely heavily on initial customer engagements, like companies that generate leads through webinars or events and some SaaS companies that use it for tracking initial sign ups via website visits or ad clicks.? The Last-touch model, in my opinion, the least effective as it disregards all other customer touch points. Finally, the Tipping Point or lead-conversion attribution model places a significant emphasis on the touchpoint where a lead is initially created or converted. This is beneficial for businesses that prioritise lead generation as a crucial aspect of their marketing strategy.
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"Last-touch attribution is like judging a movie by its ending – it misses the plot. To understand the full narrative of customer interactions, embrace models that appreciate the entire journey."— Shama Hyder, CEO of Zen Media
Multi-Touch Models
Multi-touch models distribute credit across various touchpoints and although implementing this model is certainly more complex, it? offers a more comprehensive understanding of the customer journey by considering multiple touchpoints and provides a holistic view of customer engagement, acknowledging the interconnected nature of touchpoints. This enables marketers to design strategies that align with the entire customer experience.
I won’t get into the details of each model but if you want more info on the different models such as linear attribution, time decay attribution, and U-shaped attribution - I found this article very useful: https://www.callrail.com/blog/how-to-use-attribution-models
Implementing attribution models
Implementing attribution models successfully requires a combination of strategic planning, technical infrastructure, and organisational alignment. Here are key elements that need to be in place for a successful implementation:
By addressing these elements, businesses can lay the groundwork for a successful implementation of attribution models, enabling them to navigate the complexities of the customer journey with confidence. Attribution models reveal correlation, but causation remains the Holy Grail. Recognise the limits, interpret with care, and complement your insights with a nuanced understanding of customer behaviour.