To know the exact effect your marketing efforts cause and decide accurately on whether to expand your budget, practice marketing attribution. It is one of the best techniques that some of the most successful marketers use. MA refers to the process of assigning dollars from a sale to the marketing touchpoint that a buyer accesses before making a purchase. A touchpoint can be ads placed on social media pages, ads placed on Google, blog posts, or banners. A customer who ends up buying your product or service can come across most of your advertising channels, but decide to use just one.
MA attributes relevance and weight to each of the channels rather than value just the ad that the customer clicked to buy. The reasoning behind this is that a customer wouldn’t learn about your product if they didn’t stumble upon the ads they didn’t click. With MA, earlier and latter touchpoints are valued. However, the chief aim is to accurately know how each marketing channel contributes to a sale and to determine whether your advertising budget was sensible after all.
A great marketing attribution model is capable of analyzing all your data. In short, it can determine what each potential customer viewed, who clicked what, and what actions each took in the end. As a well, the model can use its intricate algorithms to workout the impact of each marketing touchpoint. With this model, you can accurately connect your marketing activities to business outcomes. It will reveal your buyer’s journey before he or she requests for either information or whatever you sell. As a MA model stores credit for each touchpoint, your marketing team can understand which advertising campaigns lead to sales and revenues. There are three sorts of models used:
- First-Touch Attribution – Gives credit to the first marketing channel or campaign that a customer found prior to making a decision to buy.
- Last-Touch Attribution – Recognizes the last channel that a customer clicked prior to converting.
- Multi-touch Attribution – This model divides credit among every advertising campaign or channel a lead found before they clicked to order. It splits credit according to a set of pre-set rules and/or a statistical model.
It is so important to use any of these MA models in your organization. First, you will be able to budget your funds based on each marketing channel’s impact. You can spend more money on campaigns that contribute to anticipated sales and revenues and avoid those that thwart business growth. The only way to discover the campaigns that cause higher conversion rates and close quickly is to use a MA model. It is this model that will produce the data you need to justify how you spend your financial resources. With MA, you will become a better marketer who succeeds most of the times.
If you run a more complicated Business to Business (B2B) organization, you should consider using marketing attribution more than ever before. A B2B can take several months and numerous touchpoints across different marketing channels before a lead decides to order something. But how can you start? Today there are software tools that enable users to do algorithmic MA. These tools and models collect massive data from all marketing touchpoints and make predictive, algorithm-based attributions. If well set up, these tools can track every channel and capture all metrics. Whether you use online-based or offline-based marketing, you can do MA with ease.
If you are starting to spend money on advertising, the right time to track it is now. By so doing, you will know what’s working and leading to the growth of your business. As well, you will accurately decide when to raise your marketing budget and increase your sales marketing team. MA provides high quality, accurate data that can support your decision making processes. So, make use of it instead of continuing to do qualitative and subjective assessments that give you frustrations.