Do you know which marketing methods or channels bring you the most business?
That may appear to be a simple question. But it isn’t.
Marketers utilise a variety of marketing channels and methods to attract and convert the most customers at any given time. Because each consumer experiences several touchpoints during the buyer’s journey, determining which marketing channel or tactic is most effective in driving sales for your company can be difficult.
This is where attribution marketing comes in.
In this post, you’ll learn what marketing attribution is and how to create a model that’s tailored to your company.
What is the definition of a marketing attribution model?
The method by which firms determine which of their marketing efforts or channels are directly responsible for converting website visitors into customers is known as marketing attribution.
Marketers can use marketing attribution models to evaluate each touchpoint in the sales funnel using a set of rules.
You and your team can make better judgments about which channels and campaigns to focus on by creating and implementing a marketing attribution model.
As a result, you’ll be able to increase our ROI while reducing your marketing costs. This is critical because more than half of companies still devote less than 10% of their overall budget to marketing campaigns and activities.
Single-step and multi-step attribution models are the two types of marketing attribution models.
Models of single-touch attribution
Attribution based on first contact
This single-touch marketing attribution approach identifies which of your marketing channels led to a potential customer’s initial visit to your website.
Businesses frequently use this when preparing to begin a brand promotion marketing campaign.
Attribution by last-touch
The last-touch or last-click marketing attribution approach, as the name implies, credits the entire conversion credit to the last customer touchpoint prior to the purchase or generation of an opportunity.
Models of multi-touch attribution
The disadvantage of employing a single-step marketing attribution model is that it only pinpoints a single encounter on the buyer’s path. They don’t show whether other marketing channels you use have influenced a potential customer’s purchase decision.
As a result, many marketers employ one or more of the multi-touch marketing attribution models listed below.
Attribution model for lead conversion touches
This is the most used attribution model since it identifies which channels have the greatest impact on converting website traffic into qualified leads.
The reason for this is simple: getting qualified leads remains the most significant difficulty that organisations in all industries confront. It will be easier to convert leads into customers if you can identify the channels and initiatives that bring in ready-to-buy leads.
Model of linear attribution
This multi-step marketing attribution methodology evenly distributes conversion credit across all channels employed along the buyer’s journey.
The disadvantage of this multi-step attribution approach is that the points are evenly spread across all touchpoints, making it impossible to identify the most effective channels.
Model of time-decay attribution
The time-decay attribution model, like the linear attribution model, explains how each marketing channel you use influences a visitor’s conversion into a customer.
The distribution of points is the difference between the two models.
Instead of awarding equal points to each marketing channel, the value of the points awarded in the time-decay attribution model is determined by how close each touchpoint is to the actual conversion. This means that channels used near the bottom of the sales funnel are given more credit than those used at the top, or at the start of the buyer’s journey.
U-shaped model of attribution
The way the points are dispersed gives this marketing attribution model its name.
From a total of 100 points, or the entire conversion value, both the first and last touchpoints of your sales funnel receive 40 points each. The remaining 20 points are then allocated amongst the first and last touch marketing channels.
This approach works if you assume that all of your leads take the same path through the funnel, starting at the top. However, according to this report, 74% of B2B consumers would have completed half of the buyer’s journey before contacting you.
Furthermore, not everyone that enters your marketing funnel completes the entire buyer’s journey. In fact, 79 percent of your leads will never buy.
Model of custom attribution
Businesses are progressively adopting custom attribution models, sometimes known as algorithmic attribution models.
As the name implies, this model is customised for your company based on your consumer persona, buyer’s journey, and data from previous marketing initiatives.
You have more control over how many points each touchpoint gets based on how much it inspires your clients to convert with this model.
How to select and implement a successful marketing attribution model
1. Examine your entire marketing strategy.
An audit of all your marketing platforms and campaigns will reveal how many touchpoints are scattered throughout your sales funnels. It also aids you and your team in determining whether or not developing a custom attribution model is the right solution for your company.
After all, creating a marketing attribution model from scratch takes a lot of time and effort. So you want to make certain that it will be worthwhile.
Create your own attribution model if you want to:
- Have a large marketing team/more resources
- Use a variety of online and offline marketing methods
- Have previously failed to use one or more conventional marketing attribution models
- Need to give stakeholders a more detailed analysis of how each touchpoint affects sales and returns on investment
2. Establish clear objectives
Once you’ve decided that developing a custom marketing attribution model is the best option for your company, you’ll need to decide on the main aim for doing so.
Your marketing team will be guided to choose which datasets to evaluate and use as references in constructing your attribution model provided you have a clear and explicit goal.
Setting a defined aim will also aid your team in determining the measurements they’ll use as benchmarks to see if any adjustments are required to meet the objectives.
3. Create a client journey map.
Because it helps you define the exact marketing channels you’ll be monitoring, your customer journey serves as the roadmap for your complete attribution model.
Use your customer journey map to categorise each touchpoint based on how it influences your customers’ purchasing decisions, and then distribute the points accordingly.
4. Include a lead scoring system.
The process of determining which of your leads will most likely convert into customers is known as lead scoring.
This is important because, once you’ve identified your “hot” leads, you can look for common touchpoints that led to conversion and incorporate them into your bespoke attribution model.
5. Invest in the proper equipment.
Manually tracking and monitoring data for each touchpoint can be time-consuming and tiresome. Not to mention that it will be prone to mistakes.
Using a unified CRM like RisePath CRM makes tracking and automating your bespoke attribution model much easier. It also allows you to collect data from your buyer’s journey across numerous marketing channels and produce dashboards and visual reports for all-important performance KPIs.
6. Make your attribution report unique.
If you’re starting from scratch with your attribution model, you’ll also need to modify sales reports in your CRM.
With RisePath‘s sophisticated reporting features, you can generate a bespoke report based on the touchpoints you’ve chosen and the values you’ve set.
It also allows you to set when these reports will be generated and shared with your team automatically. These regular reports will help you and your team stay on track with your goals by allowing you to monitor, evaluate, and adapt your bespoke attribution model.
It takes a lot of time and works to implement a marketing attribution model, whether conventional or bespoke. But it will be worthwhile in the long run.
To begin with, a marketing attribution model enables you and your team to identify top-performing channels and focus on them rather than worrying about ROI every time you launch a new campaign.
Finally, marketing attribution models help you get the most out of your marketing budget, boost consumer engagement, and increase revenue and scalability.
Of course, implementing a marketing attribution model that you designed from the bottom up isn’t infallible. So, test frequently, use data to improve your attribution model and stay focused on your objectives.