When predicting a product’s future, marketing is essential. But why are companies looking to explore innovative marketing attribution strategies when some are already in place?
According to research, it was found that 84% of marketers think marketing affects their sales and earnings. Moreover, understanding the effects of diverse marketing initiatives is crucial to maximizing return on investment in the changing world of modern marketing.
The traditional attribution models struggle to account for the entire range of client encounters across many channels when consumer behavior changes. Therefore, it is the time when companies look forward to adapting the latest strategies that can work wonders for them.
Everything about Marketing Attribution
The process of locating and giving different marketing touchpoints or channels credit for their contributions to a desired result, such as sales, lead generation, or customer acquisition, is known as marketing attribution.
It seeks to comprehend the influence and efficacy of various marketing initiatives on changing consumer behavior throughout the customer journey.
Previously, marketing attribution was sometimes oversimplified by giving full credit to the final interaction before conversion, or “last-click” attribution. This strategy, however, ignores the numerous touchpoints that might have influenced a customer’s choice.
More complex marketing attribution models have arisen due to the complexity of consumer journeys, particularly in the digital era, where customers interact with various channels and devices, especially when the number is as high as 67%.
It aids in data-driven decision-making, marketing mix optimization, budget allocation, and identifying the key touchpoints influencing intended outcomes. Businesses can fine-tune their strategies and ultimately improve the effectiveness of their entire marketing by knowing which marketing initiatives produce results.
How is Human Behavior Linked with Marketing Attribution?
Marketing attribution is fueled by understanding the behaviors of all customers, irrespective of current or potential. It is the customer’s context that determines in identifying the effective touch points resulting in sales and conversions.
Marketers can only make sound and informed decisions if they know the consumer, especially what they think and learn about the product. For instance, if the marketer knows that an ad campaign will not attract the consumer and may need further follow-ups, they will create strategies to convert that lead accordingly.
Therefore, by understanding human behavior, companies can make more informed decisions regarding their marketing strategies and thus increase their overall revenue. It is not incorrect to say that human behavior, marketing strategy, and attributions are all interlinked concerning a product or service.
Different Marketing Attribution Models/Strategies
Businesses can examine and give different marketing touchpoints credit using several marketing attribution methodologies or models. Each model takes a distinct angle on attribution and might offer unique insights into the efficacy of marketing initiatives. Standard marketing attribution techniques include the following:
Through this strategy, all the credit goes to the consumer’s first interaction or touch point with the company’s brand. It could be the first time they visited the website, completed a survey or form, engaged with any specific content, or interacted with any other medium.
For instance, if you consider social media, the first time a consumer sees the brand will also be counted as first-touch attribution. When you focus on lead forms or generations, it is best to implement this model or strategy.
It is opposite to the first-touch model, and the credit goes to the last touch point, which leads to sales or conversion. It is the best method since it is simple to understand and use; however, it does not track how many interactions or engagements made it possible for the consumer to reach this level.
Knowing about conversion is your ultimate goal; then, you should focus on this strategy.
It is a multi-source attribution model that discusses all the sources in the customer’s journey. Hence, each touch point is given the same credit and displays the complete picture of their trip.
This model is best when you focus on giving equal importance to every step in the consumer’s life cycle, from the first interaction to the last.
Lead-Conversion Touch Attribution
The touchpoint responsible for the lead’s creation is the focus of lead-conversion touch attribution. It helps identify exact lead-generating events but needs the context of the other marketing touchpoints.
The lead-conversation touch attribution model is the most effective when you want to identify and focus on the channels functioning well for your brand’s objectives.
This attribution gives weightage to the most recent customer interactions instead of each touch point. It helps identify the channels that encourage customers to buy; however, it assumes that the later touchpoints significantly influenced the sale or conversion.
The time-decay attribution approach works best for marketing initiatives with longer sales cycles, like those aimed at businesses.
It is also called U-shaped attribution and is more complicated than the others. It credits 40% of the first touch point, 40% to the touch point after conversion, and 20% to other touch points. It is beneficial in maximizing two contacts that might be very different, but it might overvalue touchpoints that could have been more significant.
When examining the big picture and those precise touchpoints, it is advisable to use the position-based attribution model.
Out of all the models, it is the most complex and the most tailored one. It allows you to choose your weights for each touchpoint. You can consider the industry, channels, and customer behaviors when building your model. It’s accurate, complex, challenging to set up, and requires much knowledge.
When you have the time and expertise to implement the custom attribution model effectively, it is advisable.
Remember that there is no one-size-fits-all attribution model, and the best strategy will depend on your company, your industry, and the available data.
The marketing objectives of a firm, the complexity of the customer journey, the available data, and the resources needed to implement and analyze the model all successfully play a role in choosing the best marketing attribution strategy.
To thoroughly understand marketing performance and make wise decisions, it is frequently advantageous to consider many models in combination before making the final choice.