To determine which marketing campaigns and assets are the most beneficial for your company, you may use marketing attribution to calculate the value of various stages in the customer experience. Understanding this will enable you to make important adjustments that will improve your sales funnel and increase your company’s revenue.
However, there is no “correct” approach to assigning value to your marketing materials. To acquire the greatest insights, you must select a attribution platform that is appropriate for your company. See some of the popular models that might be right for you.
The simplest marketing attribution methodology is single-touch attribution. Many marketers criticize it since it is simpler than other models, but you have to start somewhere as a marketer for a new business, and single-touch attribution may tell you a lot about how well your sales pipeline is performing.
Single-touch attribution can be approached in one of two ways:
- Initial touch – The campaign that started the first contact with your company receives all of the credit.
- Last touch – The final contact a potential consumer has with your company before becoming a paying customer receives 100% of the credit.
2. Linear Attribution
Linear attribution is the next level up from single-touch attribution. With linear attribution, all potential touchpoints share in the credit rather than attributing it all to a single touchpoint in the funnel.
The fact that not all touchpoints, in reality, are equally valuable is the only significant issue with linear attribution. A person’s choice to purchase is probably affected by attending a conference much more than visiting your website or enrolling in an online course.
3. Time-Decay Attribution
One possible remedy for the drawbacks of linear attribution is time-decay attribution. The touchpoints that are closest to the conversion are given more weight in the time-decay model. The following is an illustration of how time-decay attribution might operate:
- Website visits (10%)
- Enrolls in a free online course (20%)
- Participates in a conference (30%)
- After a sales call, conversions (40%)
Time decay has drawbacks, much like every attribution scheme. In particular, it has a tendency to underestimate touchpoints towards the start of the sales funnel. For instance, it’s possible that the lead made up his or her mind to buy after the conference and that the sales call was really a formality to seal the deal. In that situation, it would be incorrect to attribute 40% of the credit to the sales call.
4. Position-based Attribution
Another multi-touch technique is the Position-Based attribution model, which provides more weight to the first touch and the touch that results in lead conversion. Businesses that heavily rely on lead generation to increase ROI may consider using this attribution model as a beneficial choice.
Each of these two touchpoints receives 40% of the credit under the U-Shaped attribution model, with the remaining 20% being divided among all other touchpoints.
5. Custom Attribution
Making a custom model is the final and frequently most reliable method of measuring marketing attribution. Depending on which analytics are most significant to you, custom attribution enables you to give varying levels of credit to different touchpoints. A marketer might give a particular webinar extra credit in the attribution model, for instance, if they are already aware that it significantly increases conversion rates. Advanced marketers that already have a thorough understanding of the intrinsic worth of various touchpoints would benefit from this attribution model’s strategy. However, in the long run, it is still an attribution model that all marketers ought to work toward developing.