Marketers rely on multi-channel strategies to conduct marketing campaigns. While this practice enables marketers to customise the customer experience along every funnel stage, it also creates multiple touchpoints in the customer journey. Therefore, attribution marketing becomes essential to any marketing strategy to understand which channels drive the most revenue and which could perform better.
This article will explore why marketing attribution is necessary, the different models, and how to choose the suitable attribution model for your business.
What is Marketing Attribution?
Marketing attribution identifies the marketing channels that led to a conversion or sale. It involves tracking and analysing customer behaviour across different marketing channels, such as social media, email marketing, paid search, and more.
Why is Marketing Attribution Important?
Marketing attribution is essential for several reasons. First, it helps businesses understand which marketing channels drive the most revenue. By identifying these channels, businesses can optimise their marketing campaigns to focus on the most effective channels.
Marketing attribution also helps businesses measure the ROI of their marketing campaigns. By tracking the performance of different marketing channels, businesses can determine which channels generate the most revenue and which are not worth the investment.
Moreover, marketing attribution can help businesses make data-driven decisions. By analysing customer behaviour across different marketing channels, businesses can gain insights into what their customers are looking for and how they interact with their brand.
Marketing Attribution Models
The most common attribution models include the following:
> First-Touch Attribution
This model gives full attribution to the first touchpoint, regardless of additional subsequent touchpoints.
> Last-Touch Attribution
This model assigns all credit to the last touchpoint the consumer interacted with before converting without accounting for prior engagements.
> Linear Attribution
This model assigns equal credit to all marketing touchpoints.
> Time-Decay Attribution
This model assigns more credit to the touchpoints closer to the conversion time, assuming those significantly impacted the sale.
> Custom Attribution
This model allows businesses to create attribution based on their business goals and marketing campaigns.
Choosing the Right Attribution Model for Your Business
The suitable attribution model for your business depends on your business goals and the nature of your marketing campaigns. For example, a first-touch attribution model may be a good fit if your goal is to generate brand awareness. A last-touch attribution model may be more appropriate if your goal is to drive conversions.
A linear or time-decay attribution model is a better solution if your business wants to evaluate and understand the entire customer journey.
It is also essential to consider the complexity of your marketing campaigns. A custom attribution model may be the best fit if you have multiple marketing channels and touchpoints.
Examples of Marketing Attribution Tools
Several marketing attribution tools are available to help businesses make data-driven decisions. Some popular examples include:
> Google Analytics
Google Analytics is a free web analytics tool that can help businesses track and analyse customer behaviour across different marketing channels. This tool can help you with marketing attribution through personalised reports, such as Multi-Channel Funnels Reports.
DreamData is a tool that gathers, joins and cleans all revenue-related data. This platform offers a transparent and actionable analysis of what drives revenue, including performance attribution reports.
In addition to being a marketing automation platform and a CRM system, Hubspot also allows you to create customised attribution reports.
To Sum Up…
Marketing attribution is essential for businesses looking to make data-driven decisions. By tracking and analysing customer behaviour across different marketing channels, businesses can gain valuable insights into which channels drive more revenue and a higher ROI. Consider implementing marketing attribution today to take your marketing strategy to the next level.