Table of Contents
Why is attribution modeling important?
You should use attribution modeling to understand what is and isn’t contributing to your conversions. Businesses should also use the information they gather to determine whether they need to improve or remove different touchpoints. If you want to measure your campaign ROI, you should consider utilizing attribution modeling.
When using attribution modeling, you should assess all of your channels – including your website, newsletter, and social media. Besides focusing on the aspects that are working, look to see if there’s anything you can do about the failing aspects. You should also use attribution models to determine where each channel stands in your funnels.
Example:
When measuring your campaigns, you might see data suggesting that Google ads convert leads. You might also find that you need to focus more on your blog for lead nurturing.
What are the different types of attribution models?
Single-touch and multi-touch attribution models are the two types that you should familiarize yourself with. Here’s a brief explanation of both:
- Single-Touch Attribution: Focuses on a single touchpoint in the customer journey. It’s usually the first or final interaction before conversion.
- Multi-Touch Attribution: Looks at more than one touchpoint and determines which ones did and didn’t contribute to the final result.
What is first-click attribution?
First-click attribution looks at the first entry point as the starting point to what caused a customer to convert. Businesses use this to look at the top part of their funnel and then determine if they need to make any changes to their strategy. Note, however, that the customer might also have interacted with different channels before purchasing.
Deep Dive:
In one example, a customer might click on a blog post from social media. The company may then promote a product via email, which the customer purchases. First-click attribution would say that the initial social media post caused the sale, despite the customer interacting with other touchpoints.
Considerations:
While first-click attribution is easy to implement, remember that it doesn’t consider whether other touchpoints – such as email – were more effective.
What is last-click attribution?
Last-click attribution is, in essence, the opposite of first-click attribution. Instead of crediting the first point of contact, you would put more of an emphasis on the final touchpoint. You should use last-click attribution when looking at your bottom-of-the-funnel strategies.
Deep Dive:
In one example, a customer may first interact with your company via a post they saw on Instagram. From there, they might click through to your website, read some blog posts, and sign up for the newsletter. After seeing a product offer in your newsletter, they might then purchase. The newsletter would receive last-click attribution in these circumstances.
Considerations:
Like first-click attribution, you can use last-click attribution as a beginner. The main difference is that you should use it to assess bottom-of-the-funnel activities. You should use it with first-click attribution, though, if you want the full picture.
What is multi-touch attribution?
Multi-touch attribution, also known as MTA, looks at touchpoints throughout the customer journey. You will assess all of the interactions that someone had with you prior to making a purchase and then measure the effectiveness for each of these.
You should use multi-touch attribution if you don’t want to look at just the start or finish of the customer journey.
Deep Dive:
In another example, you might first come to a customer’s attention via a Google search. They may then visit your website and read blog posts more than once, before signing up for your newsletter. The customer could then read an email and make a purchase. You would use multi-touch attribution to look at your SEO, blog posts, and newsletters.
Considerations:
Use multi-touch attribution when you want to assess your marketing strategy and see what users interact with before purchasing. You should also think about whether your different marketing channel combinations work together or not. Make sure that you have the required data-tracking and analytics tools, and educate yourself before starting.
What are the common attribution models?
Attribution models that you should know about include:
- Linear: Distribution across all touchpoints without variation.
- Time Decay: Focuses more on the end-of-funnel touchpoints before a sale is made.
- U-Shaped (Position-Based): Looks at the first and last touchpoints.
- W-Shaped: Similar to U-shaped touchpoints, with the main difference being that it also accredits middle touchpoints.
- Custom: You choose the metrics to follow.
What are common attribution modeling mistakes and pitfalls?
Things that you should look out for when using attribution models are:
- Offline Interactions: You need to think about offline interactions, such as display ads on billboards.
- Single Models: You should use multiple attribution models if you want to get an overview of your marketing strategy.
- Seasonality: Fluctuations may occur from season to season, and you need to think about how these will impact your conversions.
- Determine Data Quality: You need to focus on the quality of your data and use accurate information.
What is the best attribution model?
Attribution model choices are subjective, and you should pick one based on your business needs and customer journeys. If you’re new to attribution modeling, spend some time trying different types to see which one fits what you’re looking for. And if necessary, you should also customize the model base.
Conclusion
Attribution models are used by businesses to determine which touchpoints are responsible for converting customers. Use these to assess your strategy.
When using attribution models, start with the more simple options before moving on to more complex ones. You should also assess the accuracy of your data when using attribution modeling.
