As consumers use more channels and businesses adopt new marketing technology, attribution becomes increasingly important in focusing the strategy around a common goal – ROI. Marketers can bottom-up and get top-down insights by combining attribution models and adopting omnichannel marketing attribution. This gives them the best chance to optimize campaigns.
Customers have more ways than ever before to interact with brands. They are also interacting with brands through several touch points before making a purchase. Furthermore, rising customer acquisition costs have been driven up by growing online competition and new customer expectations accelerated by the pandemic. This means marketers need to implement a well-balanced and calculated strategy. And it all starts with using data to figure out the various aspects of the campaign along with the timing to get the best response. This will boost ROI by helping to balance spend by the channel between long-term value and acquisition expense.
Marketers need assess the significance of touchpoints driving engagement across different channels in order to accurately measure effectiveness. This is where marketing attribution comes in.
Marketing attribution provides a more detailed, precise understanding of customer interaction and how to optimize campaigns by focusing on the touch points that create the most ROI.
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Marketing Attribution Models
As different types of businesses face different obstacles in attributing response, there is a range of marketing attribution models available. A common recommendation is to select an attribution model based on the sales cycle of the company, the insights provided by the model, and the influence of the insights on campaign efforts.
First-touch and last-touch attribution models are widely employed for shorter sales cycles; however the models become more complex as the sales cycle lengthens.
For instance, U-shaped attribution considers the initial and final touch points in the customer journey to be the most important. Then there’s W-shaped attribution, which is similar to U-shaped attribution but adds a third prong to the analysis, giving more weight to the mid-funnel touch point where a customer turns into a lead. A linear attribution model is another often utilized model. This model considers each touch point in the sales cycle, assigning equal weight to each, and provides more information about the whole customer journey.
Omnichannel Marketing Attribution
It’s vital to remember that every tracking and attribution approach has some overlap, and there is rarely a clean example of vertical performance. The most effective strategy by far is where individual channels are not pitted against each other as contenders for a limited marketing budget.
Rather, it calculates a segment’s or population’s total spends across all channels (linear vs. touch point attribution). Businesses are better able to determine which touch point, at what moment, in a combined campaign produces the best results by doing so. Another important characteristic of this cumulative attribution is that it allocates spending to more valued segments rather than less productive groups, ensuring that each targeted group gets their fair share of the budget rather than all prospects and customers being treated similarly.
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While using various tracking technology and attribution approaches to aid response analysis is critical, marketers should also continue to develop and test best practises across all channels. The goal is to understand how to use them in different combinations, frequencies, and costs depending on expected value, which is determined through data modelling.
The need for continual testing and refinement across all channels across all segments in order to keep up with developing shifts and trends in customer behavior has been emphasized by recent experience over the last year.
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