As consumers interact with your brand across an increasing number of screens and channels, it becomes more difficult to determine which aspects of your marketing strategy are effective.
According to a study by Econsultancy, 58% of marketers who do not use digital attribution modelling say that they struggle to understand the customer journey, and 55% struggle with identifying their most effective marketing channels.
This can result in suboptimal allocation of marketing budgets, missed opportunities for customer engagement, and ultimately, lower conversions and revenue.
Additionally, without a clear understanding of the customer journey, marketers may find it difficult to identify the touchpoints that are most effective in driving conversions and may miss opportunities to optimize their marketing campaigns for maximum impact. This can lead to a competitive disadvantage in the market and a loss of market share.
So, what it has to do with digital attribution modelling in relation to the customer journey?
Digital attribution modelling can help to understand the customer journey by providing insights into which touchpoints and interactions are most influential in driving conversions.
By analyzing data from various touchpoints, digital attribution modelling can identify which touchpoints are most effective in driving awareness, consideration, and ultimately, conversions.
This information can be used to optimize marketing campaigns, by adjusting budget allocation, messaging, and targeting to improve performance and drive better results.
In this article, we will dive into how to optimise your digital marketing campaign through digital marketing attribution modelling.
What is the attribution model definition?
The attribution model in marketing is a reporting approach that enables marketers and sales teams to assess the influence of marketing on a given goal, typically a purchase or sale. Marketing attribution techniques, for example, might be used by marketers to determine how a blog post or social media approach affected sales.
However, marketing attribution only is not sufficient to measure the success of a campaign. We need to know a bit more detailed data on how the campaign performs.
This is where digital marketing attribution modelling comes into play.
In marketing, digital attribution modelling refers to the process of assigning credit or value to different touchpoints or interactions that a customer has with a brand or business, with the goal of understanding which marketing efforts are driving conversions or other desired outcomes.
An attribution model is a set of rules or methodologies to allocate credit or value to each touchpoint along the customer journey. Different attribution models may give different weights or credit to different touchpoints depending on the model’s rules and assumptions.
Example:
A first-touch attribution model would assign all credit for a conversion to the first touchpoint a customer had with the business, while a last-touch attribution model would give all credit to the final touchpoint before conversion. In contrast, a multi-touch attribution model would assign credit to multiple touchpoints along the customer journey, considering the contribution of each touchpoint to the final conversion.
By using digital attribution modelling, businesses can better understand which marketing touchpoints or campaigns are driving the most conversions or engagement, and adjust their marketing strategy accordingly. Digital attribution modelling can help businesses optimize their marketing budget and resources, identify gaps or inefficiencies in their marketing channels, and identify areas for improvement in their overall marketing strategy.
Which attribution model to use for digital marketing purposes?
In today’s complex digital landscape, consumers interact with brands across multiple channels and touchpoints before making a purchase.
For marketers, understanding which touchpoints are most influential in driving conversions is essential to optimizing marketing campaigns and improving overall ROI.
There are several types of attribution models available for marketers to use, each with its own strengths and weaknesses.
Now, let’s explore the different types of attribution models available and provide insights on how marketers can choose the suitable model to optimize their marketing campaigns and achieve better results.
First Interaction: This model attributes all credit to the first interaction that led to a closed won deal.
Last Interaction: This model attributes all credit to the last interaction that led to a closed won deal.
Linear: This model assigns equal credit to all interactions that led to a closed won deal.
U-Shaped: This model attributes 40% of the credit to the first interaction and 40% to the interaction that created a contact. The remaining 20% is evenly distributed across all interactions between the first interaction and contact creation.
W-Shaped: This model attributes 30% of the credit to the first interaction, 30% to the interaction that created the contact, and 30% to the last interaction that created the deal. The remaining 10% is evenly distributed across all interactions between the first interaction and deal creation.
Full-Path: This model attributes 22.5% of the credit to the first interaction, 22.5% to the interaction that created the contact, 22.5% to the last interaction that created the deal, and 22.5% to the interaction that closed the deal. The remaining 10% is evenly distributed across all other interactions.
Time-Decay: This model gives more credit to the most recent interactions, with the credit for interactions decreasing the longer it takes for a prospect to convert into a contact.
Data-Driven: Data-driven digital attribution modelling uses machine learning algorithms to analyze data from a variety of sources to identify which interactions, channels, and campaigns have the most significant impact on conversion.
Confused? Yes, there are many ways for you to conduct digital attribution modelling for your marketing campaigns.
So, the main question here will be:
How will you choose which digital attribution modelling is the right one for you?
Using different attribution models requires a clear understanding of each model’s strengths and weaknesses, as well as the specific goals and objectives of the business. Here are some general steps to follow when using different attribution models:
#1 – Identify the business objectives
The first step is to identify the specific goals and objectives of the business. For example, is the goal to increase overall sales, improve the ROI of marketing spend, or improve customer engagement? Different attribution models may be more appropriate for different goals.
#2 – Understand the different attribution models
Once the business objectives are identified, it’s important to understand the strengths and weaknesses of different attribution models.
For example, first-click attribution gives credit to the first touchpoint in the customer journey, while last-click attribution gives credit to the last touchpoint. Linear attribution gives equal credit to all touchpoints in the customer journey. Each model has its own strengths and weaknesses, and businesses need to choose the right model based on their specific goals and objectives.
#3 – Choose the right attribution model
Businesses can choose the right model for their specific needs based on the business objectives and the strengths and weaknesses of each attribution model.
One example would be, if the goal is to improve customer engagement, a time decay model may be more appropriate since it gives more credit to touchpoints that occur closer to the conversion.
#4 – Test and refine
Once an attribution model is chosen, it’s important to test and refine the model over time. This may involve analyzing the results of different campaigns or adjusting the weighting of different touchpoints in the model.
#5 – Use attribution insights to optimize marketing effort
Finally, businesses can use the insights gained from digital attribution modelling to optimize their marketing efforts. For example, if a specific channel or tactic is consistently driving the most conversions, businesses can allocate more resources to that channel or tactic to improve overall ROI.
So, do you get how to approach digital attribution modelling the right way?
Using different attribution models requires a strategic approach that considers the specific goals and objectives of the business, as well as the strengths and weaknesses of different models. By choosing the right model and using the insights gained to optimize marketing efforts, businesses can improve the effectiveness of their marketing campaigns and achieve better results.
Conclusion
Digital attribution modelling is a crucial technique used by marketers to understand the impact of their marketing campaigns on customer behaviour.
It helps in allocating credits to various touchpoints or interactions that a customer has with a business, leading up to a conversion.
Different types of attribution models are available for marketers to choose from, including first interaction, last interaction, linear, U-shaped, W-shaped, full-path, and time-decay.
Choosing the right attribution model is important as it can help optimize marketing strategies, maximize ROI, and enhance customer experiences. Without understanding the customer journey, marketers risk losing valuable insights and may make incorrect assumptions about their customers’ behaviors.
Want to know more about digital attribution modelling in marketing? Contact me and I’m more than happy to assist you.